IDGC of Center released its half year 2011 results under IFRS, key financial indicators showed a significant growth

31 August 2011

IDGC of Center has released its interim unaudited statements for the six months in accordance with IFRS for the first time. The company’s revenue over the same period of the last year grew by 19.2% to RUR 35.2 billion, including from electric power transmission — RUR 33.6 billion, from technological connection — about RUR 1.1 billion, and other revenue — RUR 452 million. Revenue from technological connection increased more than 2 times as compared to 1H 2010 due to the completion of major contracts for connection to the network of IDGC of Center.

Operating profit of IDGC of Center for the reporting period amounted to RUR 5.8 billion, an increase as compared to the year-ago levels constituted 63.6%. Earnings before interest, taxes, depreciation and amortization (EBITDA) constituted RUR 8.6 billion, and demonstrated almost 50% increase over 1H 2010. Net profit increased by 63.7% and the figure itself reached RUR 3.8 billion. This significant increase is associated with the outstripping rate of revenue growth over the rate of cost growth, as well as a substantial revenue growth from technological connection.


RUR bln

Indicators
1H
Change, %
2011 2010
Revenue (total), including: 35,2  29,5  19,2 %
Revenue from electric power transmission 33,6   28,6 17,6 %
Revenue from technological connection 1,1  0,5 106,6 %
Other revenue 0,5  0,4 17,5 %
Operating profit 5,8  3,5 63,6 %
EBITDA1 8,6   5,7 49,9 %
EBITDA margin, % 24,3 %  19,3 %  5 p.p.
Net profit 3,8   2,3 63,7 %
Net profit margin, % 10,9 % 7,9 % 3 p.p.

1 The calculation was based on the formula: profit and total combined profit for the year + income tax expenses + interest expenses + depreciation.

Operating expenses for the 6 months of 2011 amounted to RUR 29.9 billion, that is 13.8% higher than in the same period of the last year.

The company's credit portfolio at a yearend totaled RUR 14.2 billion - for comparison, the value of the indicator as of December 31, 2010 constituted RUR 14.9 billion. The loan portfolio showed a reduction of 5%. Cash inflow from operating activities allowed financing capital investments in the first half of 2011 by own funds without attracting any borrowings. Net debt as of June 30, 2011 is equal to RUR 11.4 billion.

The company's management believes that the release of the interim financial results in accordance with IFRS will enhance corporate transparency of IDGC of Center, and will contribute to more informed decisions by the investment community on the basis of information provided. The company plans to continue to releasing interim data according to IFRS.

IFRS financial statements for the six months of 2011 and for prior periods are available on the company's web site at:
 /investors/presentations/; /en/information/msfo/

These materials contain statements about future events and expectations, which are forward-looking estimates. Any statement contained in these materials, which is not information for prior reporting periods, is a forward-looking statement that involves known and unknown risks, uncertainties and other factors, due to the impact of which the actual results, performance or achievements may be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. We assume no obligation to update information contained herein, in order to reflect actual results, changes in assumptions or factors affecting forward-looking statements.

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