Russia's TGK-7 posts net profit of 2.6 bln rubles in H1
SAMARA. Aug 5 (Interfax) - Russia's Territorial Generating Company No. 7 (TGK-7) posted net profit of 2.614 billion rubles under Russian accounting standards (RAS) in the first half of 2009 compared to net losses of 4.234 million rubles in the same period of 2008, the company said in a report.
Sales revenue grew 9% to 22.724 billion rubles in the half, gross profit increased 120% to 4.325 billion rubles and costs declined 2.7% to 18.399 billion rubles.
"Unfortunately, the net profit received in the first half of 2009 is paper profit since it isn't backed by real cash income," the company's press service told Interfax.
The press service also said that TGK-7 had accounts receivable of almost 5.3 billion rubles as of July 1 for heat consumer by its customers.
The indexation of the tariffs for gas limits on a quarterly basis in 2009 and the one-time increase in electricity and heating tariffs for the whole year led to the reduction in costs, the company said.
"All of this enabled the company to cut spending on fuel purchases. This situation, however, is temporary since gas tariffs will increase each quarter and reach 27% by the end of the year," the press service said.
TGK-7, one of the largest territorial generating companies, includes 21 combined heat and power plants with capacity to generate 6,900 megawatts of electricity and 30,700 Gcal/hr of heat.