30 Aug 2010 13:06

TGK-2 sees IFRS net losses go up by 12.3% in 2009

MOSCOW. Aug 30 (Interfax) - Generating company OJSC TGK-2 boosted its IFRS net losses by 12.3% to 5.319 billion rubles in 2009, the genco said in a memorandum.

The company's sales revenue went up by 12.2% to 25.98 billion rubles while operational expenditures decreased by 1.1% to 27.203 billion rubles. TGK-2's losses from current operations went up by 2.8% to 5.386 billion rubles while pretax losses increased by 10.1% to 6.429 billion rubles.

The genco's EBITDA for 2009 came to 903 million rubles for 2009 compared to a negative EBTIDA in 2008 that totaled minus 1.52 billion rubles.

The net losses for 2009 were largely driven by a substantial reappraisal of its main funds worth 4.3 billion rubles.

Excluding this reappraisal, TGK-2's net losses for 2009 came to around 1 billion rubles since the bulk of its generating capacity was part of the non-priced power market (Arkhangelsk region). In addition, the genco employed expensive fuels such as heating oils, TGK-2 said.

The implementation of the gradual transfer of most of Arkhangelsk generating capacity to gas power in 2010-2011 will help stabilize revenues and produce a positive effect owing to the difference between set tariffs and production costs.

The genco's net losses will be compensated by tariffs in 2011, the memorandum said.

TGK-2 has 2,582 MW of power and 12,473 Gcal/h of heat capacity at power plants in the Arkhangelsk, Vologda, Kostroma, Novgorod, Tver and Yaroslavl regions.