5 Jul 2010 13:22

TGK-1 boosts net profit 24.6% in Q1

ST. PETERSBURG. July 5 (Interfax) - TGK-1 posted a net profit of 2.949 billion rubles in January-March 2010 under International Financial Reporting Standards (IFRS), 24.6% more than in the same quarter last year, the company said in its earnings statement.

Revenue rose 32.7% to 17.448 billion rubles.

Sales revenue from the sales of electricity increased by 53.9% to 5.931 billion rubles, capacity sales - 19.8% to 1.919 billion rubles and heat sales - up 30% to 9.468 billion rubles.

TGK-1 said that the increase in sales revenue had been driven in part by a rising heat output owing to colder conditions in the first quarter of 2010 in comparison with the same period of 2009, the expanding share of the free market from January 1, 2010 and higher prices on the day-ahead market.

The genco's EBTIDA went up by 28.8% to 4.62 billion rubles while the EBITDA margin went down by 0.8 of a percentage point to 26.5%.

The genco's pretax profit went up by 24.4% to 3.56 billion rubles.

"When comparing the first quarter of this year with the same period of 2009 it is necessary to bear in that we initially are pulling away from the very high base formed in 2009, first by a quarterly increase in gas prices and, secondly, the very good water levels at the Neva and Karelia branches. This caused a slight decrease in the margin in the first quarter of 2010," the genco said in the statement quoting general director Boris Vainzikher.

TGK-1 brings together 6,275 megawatts of power and 14,548 Gcal/h of heat capacity at 55 power plants in St Petersburg, Karelia and the Leningrad and Murmansk regions.

Gazprom controls the genco.