OREANDA-NEWS. December 20, 2010. TGC-1 releases its unaudited consolidated report under IFRS for the period ended September 30, 2010.

In Jan-Sep 2010, consolidated revenue increased by 35% - to RUR 36,849 mn. The increase is associated with a number of factors:

increase of electricity sales (plus62%) as a result of expansion of the unregulated market as of January 1, 2010 (from 50% to 60%) and as of July 1, 2010 (from 60% to 80%) and higher spot prices;

increase of heat generation and, consequently, revenue from heat sales (plus25%)

effective operations on the market, namely, the conclusion of unregulated electricitypluscapacity contracts. For example, revenue from electricitypluscapacity contracts shot up more than two-fold to almost RUR 3,130 mn.

Operating expenses were up 45% - to RUR 33,675 mn, in particular, as a result of:

higher fuel expenses associated with the increase of electricity and heat generation and one-off (and not quarterly like in 2009) gas price hike, as well as due to more expensive fuel oil prices which is the main fuel of Murmanskaya CHPP (plus75%);

growth of electricity generation by Company’s CHPP in condensing mode in 3Q due to higher demand, which resulted in lower fuel efficiency;

increase of electricity and capacity purchases on the wholesale market in order to fulfill the obligations of unregulated electricitypluscapacity contracts and export sales and higher purchasing market prices;

decrease of one-off gains.

Operating profit was down 23% to RUR 3,170 mn. Profit for the period was RUR 2,392 mn, which is 14% less than last year.