21 Dec 2010 11:53

Mosenergo narrows Q3 losses more than two thirds, boosts 9M earnings over 3-fold

MOSCOW. Dec 21 (Interfax) - Mosenergo narrowed net losses to International Financial Reporting Standards (IFRS) 68.8% year-on-year in Q3 2010 to 839 million rubles.

The Moscow generating company, which is controlled by gas giant Gazprom , said in a statement that sales revenue grew 25.5% to 22.8 billion rubles in Q3.

It said net profit soared 2.1-fold year-on-year in January-September to 3.4 billion rubles from 1.096 billion rubles.

It also said figures for 2009 had been revised. "The revised standard 'Borrowing costs' came into force for annual periods beginning on or after January 1, 2009. The clarifications to the revised standard were issued in July 2009. So the Company could not apply these clarifications in respect of capitalised interest calculation for interim reporting periods. As a result restatement for the comparative period is needed," says a note to the IFRS report.

Earnings before taxes, depreciation and amortization (EBITDA) grew 17.4% year-on-year in the 9M to 11.67 billion rubles. Mosenergo in September raised its 2010 EBITDA forecast 7.5% to 17.2 billion rubles due to weather factors, including the summer heat wave. The FY2010 revenue forecast was not altered.

Revenue in 9M 2010 grew 25.24% year-on-year to 97.515 billion rubles due to higher commercial heat supplies and wholesale market electricity sales, and higher next day prices. Revenue from the sale of electricity and capacity came to 55% of total revenue (up 21.9% year-on-year) and revenue from heat sales to 40.38 billion rubles (up 31%).

Net debt fell 44.4% during the 9M to 8.95 billion rubles, with short-term debt growing 130% to 4.8 billion rubles and long-term debt falling 28.7% to 11.878 billion rubles.

Mosenergo is one of Russia's biggest generating companies, with 17 power plants and combined capacity of approximately 12 gigawatts. Gazprom controls the company and the City of Moscow owns a blocking stake.