OREANDA-NEWS. On 06 August 2008 was announced, that TGC-1 reported its operating and financial results for the first half of 2008 under Russian Accounting Standards (RAS).

Total electricity generation from the electric power plants of TGC-1 in the first half of 2008 reached 14,311 million kWh (compared to 13,859 million kWh in 2007). Total useful heat output was reported at 13,028 thousand GCal (compared to 13,867 thousand GCal in 2007).

The Company’s revenues for the period from 1 January to 30 June 2008 amounted to RUR 16,125 million, while in 2007 they stood at RUR 13,869 million.

The operating expenses attributable to production costs are estimated at RUR 15,309 million, compared to RUR 12,969 million recorded in 2007.  The considerable rise in costs during the reported period was due to an increase in production at thermal power plants and to the purchase of electricity at the wholesale electricity and capacity market of the Russian Federation for the purpose of meeting commitments under regulated contracts. Furthermore, more than RUR 806 million was spent in the first half of 2008 on the repair programme, which is 1.5 times higher compared to the same period in 2007. The Investment Programme is estimated at RUR 11,719 million (compared to RUR 5,252 million in 2007).

Hence, the Company’s profit before taxation for the six months of the current year totaled RUR 456 million (compared to RUR 408 million in 2007).

The net profit for this period was recorded at RUR 136 million, compared to RUR 215 million in the year 2007. This decline in the value occurred because the Company reported in this period the costs it incurred in issuing additional shares.