OREANDA-NEWS. November 22, 2010. JSC TGC-1 releases its 3rd Quarter and 9 months 2010 financial results according to Russian accounting standards.

The revenue in January-September increased 36.5% compared to the same period of 2009 and totaled RUR 34,464 mn. The revenue from electricity and capacity sales was up 47.6% to RUR 21,634 mn, revenue from heat sales – 25.9% to RUR 12,406 mn. The increase in electricity and capacity sales in explained by liberalization of the sector, and hike in electricity useful output.

CoGS was up 37.9% to RUR 31,126 mn. The major factors contributing to the change in costs were:

increase of fuel costs as a result of higher electricity and heat output, as well as one-off rather than quarterly (as was the case in 2009) gas prices hike;

increase of purchases of electricity – majorly to fulfill unregulated electricity and capacity contracts and export sales;

As a result, operating profit in January-September 2010 totaled RUR 3,338 mn ( plus24.6%), net profit – RUR 2,023 mn (-14.6%). The decrease of the bottom-line is due to the following factors:

higher CoGS growth vs. revenue in 3rd quarter as a result of seasonal decrease of heat output and, as a result, decrease of electricity output in cogeneration mode;

higher interest payments to service the outstanding debt;

decrease of other income.