OREANDA-NEWS. On 02 April 2009 was announced, that the Board of directors of JSC OGK-5 approved its audited consolidated financial statements for 2008, prepared in accordance with International Financial Reporting Standards (IFRS).

Consolidated Income Statement as of 31 December, 2008[1]

Operating Revenue totaled 42,813 million RUR, 9, 348 million RUR higher than the figure posted a year earlier (+28%). The increase is mainly driven by the growth in net power output by 12% (from 36,481 to 40,729 GWh), due to the overall improvement of the power plants availability factor and utilization ratio, by the increase in the average sale price of energy and capacity and by a better sale mix (28.0% of sales on the Day Ahead Market on total sales).

EBITDA stood at 5,304 million RUR, 2, 064 million RUR higher than the same figure posted a year earlier ( +64%). Without taking into account the negative impact of one-off costs for a total amount of 311 million RUR related to the launch of a 5-year restructuring plan by the company, EBITDA would be 5,615 million RUR (+73% from 2007)

Operating Profit amounted to 2,837 million RUR, 1,665 million RUR higher than 2007 ( +142%)

Net Financial Expenses totaled -288 million RUR, versus financial revenues of 215 million RUR achieved in 2007. This reduction can be explained by the financing of the investments performed by the company during the year (12,778 million RUR) related to the construction of two new CCGT units at Sredneuralskaya and Nevinnomysskaya industrial sites, to the new dry ash removal system at Reftinskaya GRES, and to the modernization of the existing plants.

Profit Before Tax totaled 2,416 million RUR, 1,027 million higher than 2007 ( +74%)

Net Profit totaled 1,630 million RUR, 159 million higher than the value posted in the previous year (+11%).

It is worth mentioning that in 2008 non-recurring income tax charges of 172 million RUR were booked by the Company. This was mainly attributable to the review of the tax value of fixed assets at Konakovskaya and Nevinnomysskaya power plants, merged into OGK-5 in 2006. Meanwhile non-recurring income tax revenues of 456 million RUR were booked in 2007.

Without taking into account the effect of both one-off items, recurring net profit surpassed 2007 level by 78%.

Consolidated Balance Sheet as of 31 December 2008

Total Assets at the end of 2008 totaled 82,773 million RUR, 3,802 million RUR higher than the figure posted in the previous year.

Non- Recurring Assets totaled 75,126 million, 10,556 million RUR higher than the value achieved in 2007, due to the capital expenditure program carried out in 2008.

Current Assets totaled 7,646 million RUR, 6,754 million RUR less than the figure posted at the end of 2007. The decrease is mainly attributable to the use of funds raised trough the IPO to cover the financial needs related to the investment program of the Company (-7,160 million RUR versus year-end 2007).

Total Equity at the end of 2008 stood at 64,092 million RUR, 3,330 million RUR higher than the corresponding value at the year end 2007. The change is mainly due to the net profit for the year (1,630 million RUR) and to the reversal of deferred tax liabilities, previously recognized in equity, due to the change of the income tax rate starting from the 1st of January 2009 (1,557 million RUR).

Total Liabilities stood at 18,681 million RUR, 472 million RUR higher than the figure posted a year earlier. The change is mainly driven by the increase of short-term borrowings (+1,864 million RUR) used to bridge long term financing to be formalized at the closing date and has been partially offset by the decrease of deferred tax liabilities (-1,252 million RUR) mainly due to the change of the income tax rate starting from the 1st of January 2009.

Consolidated Cash Flow Statement as of 31 December 2008

Net Cash Flow From Operation in 2008 totaled 4,234 million RUR, 809 million RUR higher than the figure posted in the same period of 2007 (+24%).

Net Cash Outflow From Investing Activities totaled 5,834 million RUR, 4,045 million higher than in 2007, due to a larger commitment of the Company in the execution of the investment program.

Net Cash Inflow From Financing Activities totaled 1,631 million RUR versus a net cash outflow of 1,135 million RUR in 2007.

As a result, at the end of 2008 OGK-5 registered a Net Increase in Cash of 31 million RUR.

The audit of 2008 IFRS Consolidated Financial Statements has been carried out by KPMG, appointed as the auditor of JSC “OGK-5” for the year 2008 by the Annual General Shareholders’ Meeting of JSC “OGK-5” in May 2008.

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[1] At the closing date the Company performed the restatement of 2007 IFRS Financial Statements in order to properly reflect, among other, the impact of existing liabilities on that date. All the details of changes in comparatives have been disclosed in Consolidated Financial statements for 2008.