16 Nov 2009 14:14

Inter RAO earnings plummet to 17.9 mln euro in H1

MOSCOW. Nov 16 (Interfax) - Inter RAO UES posted a net profit of 17.9 million euro in the first half of 2009 under International Financial Reporting Standards (IFRS), a decline of almost 67% from the same period last year, the company said in a statement.

Revenue rose 12% to 776.35 million euro and operating profit rose 7.8% to 75.75 million euro.

The comparison figures for 2008 were derived on a pro forma basis, as Inter RAO was only formed in May 2008, through the consolidation of OJSC Inter RAO and a host of generating assets around OJSC Sochi Combine Heat and Power Plant.

The improvement was due mainly to higher prices and sales volumes on the Scandinavian energy market, and rising output at the Moldova State Electricity Station (Moldova GRES), which supplies electricity to Moldova and exports to Romania and Mtkvari-Energy LLC, which supplies electricity to Georgia.

Spending rose 10.3% in the period to 706.2 million euro.

Inter RAO spent 379 million euro to buy electricity and capacity, 5% more than in the same period last year, due to higher prices of electricity purchased on the domestic market to fulfill regulated agreements and foreign trade operations.

Fuel costs more than doubled to 115 million euro due to increases in output at Moldova GRES and Mtkvari-Energy.

"The increased cost of borrowing resulting from changes in the macroeconomic situation on financial markets had a substantial impact on the group's operating results, as well as an exchange rate loss from the revaluation of assets and liabilities denominated in foreign currency," the statement says.

Inter RAO's long-term liabilities increased more than 50% to 569 million euro compared with the end of 2008. Short-term liabilities declined 15.5% to 319 million euro.

Inter RAO operates Russia's electricity exports and imports and also has generating assets in Russia and abroad.