OREANDA-NEWS. December 08, 2009. JSC “OGK-6” (MICEX - OGK6; RTS – OGKF) reports its Interim Consolidated Financial Statements prepared in accordance with International Financial Reporting Standards (IFRS) for nine months of 2009.

The company revenues in the first nine months of 2009 decreased 5% to 30.2 bln roubles compared to the same period of 2008. The reduction of operating expenses in 9 months of 2009 amounted to 19%. Net profit in the accounted period reached 3.1 bln roubles compared to 298 mln roubles losses in the same period last year.

The growth of net profit after nine months of 2009 to the same period last year reflected the rise in tariffs (prices) on electricity outpacing the growth of fuel prices because of the introduced quarterly increase of prices on gas.

Key Performance indicators

 

Period

Change

y.o.y. (%)

Period

Change y.o.y.

(%)

Financial performance indicators (thousand roubles)

Three months ended

September 30, 2009

Three months ended September 30, 2008

 

Nine months ended September 30, 2009

Nine months ended September 30, 2008

 

Revenues

9,739,443

11,541,520

-16%

30,186,419

31,903,902

-5%

Operating expenses

(9,419,125)

(11,844,404)

-20%

(26,769,605)

(32,852,431)

-19%

Other (expenses)/income

(42,347)

(65,251)

-35%

(2,059)

(90,737)

-98%

Operating (loss)/profit

277,971

(368,135)

176%

3,414,755

(1,039,266)

-

Finance income

86,160

161,397

-47%

327,882

726,202

-55%

Finance expenses

(54,700)

(78,270)

-30%

(162,317)

(235,753)

-31%

(Loss)/profit before income tax

309,431

(285,008)

209%

3,580,320

(548,817)

-

Income tax benefit/(expense)

127,050

(68,677)

285%

(476,870)

250,988

-

(Loss)/profit for the period

436,481

(353,685)

223%

3,103,450

(297,829)

-

(Loss)/earnings per ordinary share - basic and diluted (in Russian Roubles)

0,0135

(0,0110)

223%

0,0961

(0,0092)

-

Production and sales indicators

 

 

 

 

 

 

Electricity production, thousand kWh

7,249,169

10,731,638

-32%

20,366,164

29,419,012

-31%

Heat production, Gcal

584,467

631,265

-7%

2,973,456

3,059,559

-3%

Capacity Factor, %

36%

54%

-32%

34%

49%

-31%

Electricity sales, thousand kWh

8,112,531

11,588,087

-30%

24,350,102

32,736,511

-26%

The 5% drop of the Company revenues compared to the same period of 2008 was mostly the consequence of a 26% fall in electricity sales, accompanied by a rise in average electricity and capacity prices.

Revenues Structure

 

Three months ended

September 30

Nine months ended September 30

2009

2008

Change

2009

2008

Change

 

Thousand RUR

Thousand RUR

%

Thousand RUR

Thousand RUR

%

Electricity Sales

9,319,107

11,134,591

-16%

28,340,294

30,172,487

-6%

Heat Sales

324,838

333,103

-2%

1,533,361

1,458,344

5%

Other revenues

95,498

73,826

29%

312,764

273,071

15%

Total Revenues

9,739,443

11,541,520

-16%

30,186,419

31,903,902

-5%

The 19% reduction of operating expenses after 9 months of 2009 was caused by the change in the Company’s fuel mix along with the electricity and heat production cuts.

Major Operating Expenses

 

Three months ended

September 30

Nine months ended September 30

 

2009

2008

Change

2009

2008

Change

 

Thousand RUR

Thousand RUR

%

Thousand RUR

Thousand RUR

%

Fuel expenses

4,836,038

6,932,042

-30%

13,213,825

18,378,237

-28%

Purchased heat and electricity

947,074

1,090,133

-13%

3,475,918

3,562,720

-2%

Employee benefit expenses and payroll taxes

921,113

780,423

18%

2,660,536

2,545,351

5%

Depreciation charge

452,181

703,041

-36%

1,348,603

2,109,120

-36%

 

-

-

 

-

718,957

-100%

Repairs and maintenance

454,587

514,084

-12%

1,142,937

1,272,937

-10%

Other materials

592,125

546,928

8%

1,438,900

1,247,653

15%

Water usage expenses

253,572

337,735

-25%

626,191

807,393

-22%

Energy market infrastructure cost

187,611

157,197

19%

561,756

483,808

16%

Other expenses

774,824

782,821

-1%

2,300,939

1,726,255

33%

Total operating expenses

9,419,125

11,844,404

-20%

26,769,605

32,852,431

-19%

JSC "OGK-6" was founded on March 17, 2005 within the framework of the Russian electric power industry reform. The core business of JSC "OGK-6" is electric and thermal power generation as well as supply&sales to consumers. The primary market for sales of the products of the Company is the wholesale electricity (capacity) market.

The total electric installed capacity of JSC “OGK-6” plants amounts to 9,052 MW. This renders JSC “OGK-6” the fourth largest company by installed capacity size among all OGKs and TGKs created as a result of the reform of electric power industry in Russia. In 2008 the JSC “OGK-6” electricity production totaled 38,857 million kWh .

The JSC “OGK-6” shares are traded at Russian MICEX and RTS. In July, 2008 the GDR program under Reg S and Rule 144A of JSC “OGK-6” shares was opened by Deutsche Bank Trust Company Americas. The ISIN for Reg. S GDRs is US 6708472013; ISIN for the Rule 144A GDRs is US 6708471023.