OREANDA-NEWS  On 03 December was announced, that TGC-1 announced its operational and financial results for the 9 months ended September 30, 2008

The Company’s total revenue according to Russian accounting standards (RAS) amounted to RUR 21,722m up from RUR 18,015m (+20.6%) last year. Total revenue were 4% higher than stipulated by the business plan, mainly due to the increase in electricity sales. Cost of sales for the period was RUR 21,207m (+19%) and remained marginally lower than total revenue.

Profit before taxes amounted to RUR 178.15m against a loss of RUR 474.2m a year ago, operating (gross) profit increased more than 150% to RUR 515.2m. Net loss reduced from RUR 716,6m last year to RUR 127.6m in 2008.

Capital expenditure for the 9 months amounted to RUR 17,514m up from RUR 8,096m last year (+116%). TGC-1 also spent RUR 1,372m for repairs and maintenance work.

TGC-1 total electricity generation in January-September was 19.67bln kWh which is 4% more than last year and 7% more than the planned figure. Heat power output (taking into account Murmansk CHPP) was 17,385m GCal. The load factor of the Company’s total installed power capacity equalled to 64.3% compared to 61.2% in 9 months of 2007.

It’s important to note that TGC-1 nearly doubled electricity supplies to the day-ahead wholesale market (without taking into consideration purchased power), one of the key mechanisms of power trading at deregulated prices. At the same time, Company’s key financials are still affected by seasonal decrease of heat output and higher repair costs during the period between heating seasons.