TVEL sees IFRS net profit slump 2.6% to 13.3 bln rubles in 2010
MOSCOW. Oct 21 (Interfax) - Russian nuclear fuel company JSC TVEL reported net profit to International Financial Reporting Standards down 2.6% to 13.31 billion rubles in 2010.
TVEL attributes the decline to the higher cost of raw materials, higher wages and an increase in depreciation due to the expansion of the company's assets.
TVEL group revenue grew by nearly 40% to 98.78 billion rubles in 2010, the company said in a press release. Most of this revenue was generated by sales of nuclear fuel, TVEL said.
The TVEL group in 2010 added a sublimation separation plant, gas centrifuge plant and R&D facilities to its existing fabrication assets as part of the creation of a fuel company for state nuclear energy corporation Rosatom on the basis of TVEL.
In its report for 2010, TVEL for the first time reflects the results of an actuarial valuation of its pension and other long-term liabilities according to IFRS.
The company also reflected provisions by enterprise due to the centralized valuation of provisions for decommissioning nuclear facilities and rehabilitation of areas at certain enterprises. The amount of provisions may be subject to major revisions in future due to value judgements used in the appraisal, the company said.