OREANDA-NEWS. November 21, 2012. OGK-1 releases RAS financial statements for first 9 months of 2012.

Financial performance of JSC OGK-1:

Index *

9 months of 2012

9 months of 2011

Change, %

Revenue

39.0

52.1

-25.1

Cost of goods sold

35.6

47.4

-24.9

Sales profit

2.6

3.9

-33.3

Net profit

2.1

2.8

-25.0

September 30, 2012

December 31, 2011

Total assets

66.2

65.2

1.5

Equity

57.3

59.0

-2.9

Debt finance

2.3

0

-

Liquid assets **

6.5

10.8

-39.8

Net debt

-4.2

-10.8

-

* billion RUB unless indicated otherwise

** Liquid assets are calculated as short-term financial investments + cash.

Net debt calculated as follows: Short-term debt finance plus long-term debt finance minus cash and cash equivalents minus short-term financial investments

Operational performance of OGK-1:

Index

9 months of 2012

9 months of 2011

Change, %

Electricity power generation, billion kWh

30.0

31.5

-4.8

Heat supply by collectors, million Gcal

0.7

0.7

-

ICUF %

55.3

58.1

-4.8

Income statement

JSC OGK-1 revenue for the first 9 months of 2012 reduced by 13.1 billion RUB (25.1%) to 39.0 RUB compared to the same period last year.

Reduction of revenue from electricity sales by 12.7 billion RUB (29.8%) for the first 9 months of 2012 was primarily driven by 31% drop in electricity sales volumes compared to the same period of 2011 due to the following:

· 4.5% reduction in electricity generation caused by scheduled repairs of two power generation units at Permskaya TPP and by load optimization at Kashirskaya TPP

· no electricity sales under free bilateral agreements (FBA) compared to 11.4 billion kWh of electricity sold under FBA over the same period of 2011).

Reduction of revenue from electric power sales by 0.4 billion RUB (4,6%) to 8.4 billion RUB was mainly driven by 2.8% lower sales price.

Cost of goods sold for 9 months of 2012 reduced proportionately to the revenue reduction by 11.8 billion RUB (24.9%) to 35.6 billion RUB, primarily because less electricity was purchased to deliver on the free bilateral agreements.

As the result, gross profit reduced by 1.3 billion RUB (27.7%) to 3.4 billion RUB compared to the same period last year.

Balance of other income and expenses increased by 0.4 billion RUB to -0.4 billion RUB compared to -0.9 billion RUB over the same period last year. This increase was primarily driven by 0.4 billion RUB (36.4%) reduction of other expenses. Other expenses reduced due to smaller provisions for bad debts than in the same period of 2011.

Interest receivable went down by 0.2 billion RUB (28.6%) to 0.5 billion RUB due to reduced allocation of temporarily free cash generated by additional stock issue into short-term financial investments as free cash was partly allocated to the investment program covering the construction of Urengoyskaya TPP.

Interest payable of 25 million RUB is attributable to the 2.3 billion RUB loan for share buyback launched as a part of company reorganization program in Q3 2012.

Net profit of OGK-1 in the first 9 months of 2012 reduced by 25.0% compared to the same period in 2011 and amounted 2.1 billion RUB.

Balance Sheet

As of September 30, 2012, OGK-1 total assets increased by 1.0 billion RUB (1.5%) to 66.2 billion RUB.

As of September 30, 2012 Non- current assets increased by 3.8 billion RUB (8.2%) to 50.2 billion RUB. Through the execution of the investment program (mainly the construction of Urengoyskaya TPP), fixed assets gained 5.1 billion RUB (13.5%) and amounted 43.0 billion RUB, while unfinished construction increased by 6.4 billion RUB (42.4%) to 21.5 compared to 15.1 billion RUB as of December 30, 2011.

Long-term accounts receivable reduced by 1.4 billion RUB (60.9%) to 0.9 billion RUB as of September 30, 2012, due to settlements under the general contracting agreement for the construction of Urengoyskaya TPP.

As of September 30, current assets decreased by 2.7 billion RUB (14.4%) to 16.0 billion RUB compared to 18.7 billion RUB at the beginning of the year.

Change in current assets was influenced by reduction of short-term financial investments (bank deposits with a fixed term between 3 and 12 months) by 8.2 billion RUB (down 89.1%), and by simultaneous increase in allocation of temporarily free cash to deposits up to 3 months and increase of current account balances by 3.9 billion RUB (more than three-fold) in order to finance the investment program. Cash balance was 5.5 billion RUB as of end of reporting period.

Inventory increased by 22.2% to 3.3 billion RUB as of September 30, 2012 due to the following:

· increased coal inventory at Kashirskaya TPP and replacement of coal with gas in the first six months of the year

· consumption of coal in Q3 being less than planned

· increased fuel oil inventory at Iriklinskaya TPP

As of September 30, 2012, total equity reduced by 1.7 billion RUB (2.9%) due to 3.8 billion RUB spending on share buybacks from minority shareholders as required by applicable laws in the course of company reorganization program.

OGK-1 total liabilities increased by 2.7 billion RUB (43.5%) to 8.9 billion RUB. This change is primarily attributable to the 2.3 billion RUB loan for share buyback from minority shareholders, and to increase of accounts payable by 0.5 billion RUB (11.6%) to 4.8 billion RUB due to settlement rules of the general contracting agreement covering the PDA (Power Delivery Agreement) at Urengoyskaya TPP.

JSC NIZHNEVARTOVSKAYA TPP RELEASES RAS FINANCIAL STATEMENTS FOR THE FIRST NINE MONTHS OF 2012

Financial performance of JSC Nizhnevartovskaya TPP

Index *

9 months of 2012

9 months of 2011

Change, %

Revenue

8.2

9.2

-10.9

Cost of goods sold

6.5

6.9

-5.8

Sales profit

1.2

1.9

-36.9

Net profit

0.7

1.6

-56.3

September 30, 2012

December 31, 2011

Total assets

17.0

13.7

24.1

Total equity

10.7

10.1

5.9

Debt finance

4.6

2.5

84.0

Net debt**

4.3

0.8

437.5

* billion RUB unless indicated otherwise

Net debt calculated as follows: Short-term debt finance plus long-term debt finance minus cash and cash equivalents minus short-term financial investments

Operational performance of JSC Nizhnevartovskaya TPP:

Indicator

9 months of 2012

9 months of 2011

Change, %

Electricity power generation, billion kWh

8.0

9.2

-13.0

Heat supply by collectors, million Gcal

0.14

0.15

-6.7

ICUF %

76.0

87.9

-13.5

Income statement

JSC Nizhnevartovskaya TTP revenue for the first 9 months of 2012 decreased by 1.0 billion RUB (10.9%) to 8.20 billion RUB compared to the same period of 2011. Reduction of revenue is primarily attributable to 10.4% reduction of prices on the next-day market (NDM) and 988 million kWh (10.5%) reduction of electricity sales volume to 8,410 million kWh due to scheduled repairs. Cost of goods sold reduced by 0.4 billion RUB (5.8%) to 6.5 billion RUB due to lower electricity production leading to lower production costs.

As the result, gross profit reduced by 0.7 billion RUB (29.2%) to 1.7 billion RUB from the same period of 2011. Earnings before tax went down by 1.1 billion RUB (57.9%) to 0.8 billion RUB.

Balance of miscellaneous income and expenses decreased by 0.3 billion RUB to -0,4 billion RUB compared to -0.1 billion RUB in the same period last year. This change is primarily attributable to a currency exchange transaction (exchange losses) for the purchase of imported equipment for construction of the third power generation unit, #3.1.

Balance of interest receivable and payable did not change significantly compared to the first 9 months of 2011 and was 0.029 billion RUB compared to 0.023 billion RUB a year ago.

JSC Nizhnevartovskaya TPP net profit in 2012 reduced by 0.9 billion RUB (56.3%) to 0.7 billion RUB, compared to the same period of 2011.

Balance Sheet

Over the first 9 months of 2012, total assets of JSC Nizhnevartovskaya TPP increased by 3.3 billion RUB (24.1%) to 17.0 billion RUB as of September 30, 2012.

Fixed assets increased by 4.5 billion RUB (44.1%) and reached 14.7 billion RUB following the execution of the investment program focused on construction of the third power generating unit, including delivery of imported equipment.

Current assets decreased by 1.0 billion RUB (29.4%) to 2.4 billion RUB, primarily due to reduction of short-term accounts receivable from 1.6 billion RUB as of December 31, 2011, to 1.4 billion RUB (12.5%) as of September 30, 2012, and also due to 1.4 billion RUB ( or 82.4%) reduction of cash and cash equivalents to 0.3 billion RUB. Reduction of cash is attributable to settlements under the investment program focused on construction of the third power generation unit #3.1.

Total assets as of September 30, 2012 increased by 2.7 billion RUB to 6.3 billion RUB. This change was driven by increased long-term debt financing provided by the parent company under the intragroup financing arrangements and required to finance the investment program.