2 Nov 2009 14:57

OGK-1 doubles profit to 2 bln rubles in Jan-Sept

MOSCOW. Nov 2 (Interfax) - Russian wholesale generating company OGK-1 posted a net profit of 2 billion rubles in the first nine months of 2009 under Russian accounting standards, the genco said in a statement.

That is double the profit in the same period last year.

The higher profit is a result of enacting comprehensive anti-crisis measures and staggered increases in the price of gas while annual indexation of electricity and heat rates was enacted in full at the beginning of the year, as well as receipt of the targeted investment component of the tariff to finance the project for a third power block at the Kashirskaya District Electricity Station (GRES) and renovation of the Iriklinskaya GRES.

Revenue in the nine months was down 18% year-on-year to 30.1 billion rubles.

Revenue declined as demand for electricity in the regions where OGK-1 operates fell and due to lower prices on the free sector of the electricity market. The results for January-September do not include Nizhnevartovskaya GRES, which was included in last year's results for the January-July period.

The cost of production fell 22% in the nine months to 25.2 billion rubles. Costs fell faster than revenue thanks to cuts to both fixed and variable expenses.

Gross profit rose 9% in the period to 4.9 billion rubles. Profit on sales increased 39% to 2.8 billion rubles and pretax profit was up almost 100% to 2.6 billion rubles.

OGK-1 has 9,531 megawatts of installed capacity, more than any other Russian wholesale generating company. Federal Grid Company and RusHydro transferred a controlling stake in OGK-1 (61.9% of voting shares) to the trust management of Inter RAO earlier this year.