OGK-2 IFRS net profits jump 60% to 2.8 bln rubles in H1
MOSCOW. Aug 29 (Interfax) - The generating company OGK-2 , which is controlled by Gazprom , saw its net profits to International Financial Reporting Standards (IFRS) increase 60% during the first half to 2.836 billion rubles from 1.79 billion rubles, the company reported.
OGK-2's sales revenues increased 22% year-on-year to 27.96 billion rubles over the first six months. Growth was driven by increased sales volume and higher prices on the competitive energy market. A negative effect on production figures and, as a consequence, on OGK-2's sales revenues came from 245 million rubles in operating losses at Troitskaya State District Power Plant (GRES), a generating unit at which has been offline for repairs and re-outfitting since March, the deputy general director for economics and finances at OGK-2 and OGK-6, Natalya Vaitulenis said during a conference call that addressed the financial report. The plan is for the refurbished blocks to be put back on line in December.
The genco's EBITDA went up from 3.087 billion rubles to 4.498 billion rubles, or 45% in comparison with the same period of 2010. The net debt/EBITDA ration was 0.8 at the end of the first half, Vaitulenis said.
The genco's operational expenses went up by 19% to 24.2 billion rubles because of rising costs for fuel and purchases of electricity and capacity in order to cover obligations (up 19% to 18.8 billion rubles).
OGK-6, which is controlled by Gazprom had a similar situation with rising energy and capacity costs. OGK-2 and OGK-6 are preparing for a merger. Company management said during the conference call that the main reason for the increase in the cost of purchased electric power was changes to the rules: power companies are obliged to buy power and capacity for their own needs on the wholesale market. Furthermore, up to 28% of electricity is sold by generators under regulated agreements. OGK-2's spending on power and capacity on the market rose from 1.48 billion rubles to 2.2 billion rubles. OGK-6 purchased 2.5 billion rubles worth of electricity and capacity versus 1.98 billion rubles in H1 2010.
OGK-2's profit from operations in the first half came to 3.78 billion rubles, up 56% year-on-year.
OGK-2 is also controlled by Gazprom. It unites Pskov State District Power Plant (GRES), Serov GRES, Stavropol GRES, Surgut GRES-1, and Troitsk GRES. OGK-2 is also building the new Adler thermal energy station (TES). The genco's installed generating capacity is 8,707 mWt.