IDGC of Centre (MRKC) has published its financial statements for 9 months 2011 according to RAS

According to the prepared in accordance with Russian Accounting Standards (RAS) financial statements for 9 months 2011, the revenue of IDGC of Centre has amounted to RUR 50.4 bln, including from the transmission of electricity — RUR 48.5 bln and from the technological connections — about RUR 1.3 bln and other revenue — RUR 546 mln.

The gross profit of IDGC of Centre for the reporting period has reached RUR 10.0 bln, profit from sales — RUR 8.4 bln, profit before tax — RUR 7.5 bln rubles and net profit has amounted to RUR 5.6 bln.

The profitability ratio of IDGC of Centre for 9 months 2011 is as follows: gross profit — 19.8%, profits from sales — 16.7%, net profit — 11.2%.

The revenue of IDGC of Centre for the indicated period has increased by 16.1% over the same period of last year. This growth was mainly driven by higher revenue from the electricity transmission by 15.4% due to the increase in efficiency of electricity supply as a result of the growth of electricity consumption by industrial consumers.

The main growth of electricity consumption has been recorded in the Belgorod and Lipetsk regions, which is also associated with the introduction of production capacities by metallurgists in the 1st half of 2011. The growth of electricity consumption in these regions compared to the same period last year has amounted to 5%. The increase in net sales has been influenced by increase of revenue from the technological connections: improvement of this indicator relative to nine months of last year has amounted to 44.7% mainly due to the closure of major contracts for technological connection.

The operating expenses for 9M2011 has amounted to RUR 40.4 bln, the increase over the same period last year is equal to 10.2% and it has been obtained by increasing the production cost of electricity transmission due to increased costs for the services provided by FGC UES and for the services performed by the territorial grid companies. The production cost of technological connection has remained at the same level, and the production cost of other products, goods and industrial services has increased by 108.9%.

The profit from sales for 9M2011 has increased by 46.2% compared to the same indicator for 9M 2010. The net profit has increased by 48.5% due to faster pace of revenue growth over the pace of operating expenses cost growth due to the implementation of a number of measures to reduce operational and management costs: management personnel optimization, reducing transport costs, as well as significant growth in revenue from the technological connections in the reporting period.

 Accounting statements for 9 months 2011 (xls, 96Kb)