OGK-2 increased its 1H 2014 RAS Net Profit by 8.4%

OJSC OGK-2 releases its Accounting Statements for 1H 2014, prepared in accordance with Russian Accounting Standards (RAS).

The Companys electricity output for the 6 months of the 2014 decreased by 7% and totaled 32 bln 929 mn kWh (vs 35 bln 230 mn kWh in 1H 2013). Heat output increased by 1.7% and totaled 3.774 thous Gcal (vs 7.710 thous Gcal in 1H 2013).

The Companys electricity output decrease resulted from workload optimization (reduced proportion of inefficient capacity in the output) and lowered electricity consumption in Russian Federation. Yet energy supply or the Olympic venues, as well as constant high loading of Adlerskaya HPP after the Olympiad nearly doubled its output up to 1 bln 180 mn kWh (vs 670 mn kWh in 1H 2013) and reflected on the total heat output of the Company.

Key Highlights of the Statement of Financial Results (mn RUR) 1H 2013 1H 2012Change (%)Change (∆)
Revenue 55,661 52,3316.4%3,330
Cost of sales (48,142) (45,475)5.9%(2,667)
Gross profit 7,519 6,857 9.7%662
Profit from sales 6,645 6,1028.9%543
Net profit 4,477 4,130 8.4%347

The Companys revenue for the 6 months of the 2014 totaled RUR 55 bln 661 mn, growing by 6.4% or RUR 3 bln 330 mn year-on-year. That was reasoned by the growth of electricity and capacity prices on the wholesale market.

Cost of sales for the 6 months of the 2014 totaled RUR 48 bln 142 mn, showing controlled growth by 5.9% year-on-year.

The fuel expenses, which increased year-on-year on the back of growing fuel prices, dominated the cost of sales structure. At the same time, the structure of fuel usage was slightly improved via replacement of the ineffective gas generation by marginally more preferable coal generation. Notably, the increase in expenses for purchased electricity and capacity took place against the background of growing electricity and capacity prices on the wholesale.

As a result of the above mentioned factors, profit from sales for the 6 months of the 2014 increased by 8.9% or RUR 543 mn year-on-year and totaled RUR 6 bln 645 mn.

EBITDA* for the 6 months of the 2014 grew by 4.7% year-on-year, amounting to RUR 8 bln 50 mn (vs RUR 7 bln 689 mn in 1H 2013). OJSC OGK-2 net profit for the 6 months of the 2014 totaled RUR 4 bln 477 mn, increasing by RUR 347 mn or by 8.4% year-on-year.

Net profit growth year-on-year was stimulated by the measures, aimed to curb growth of expenses, largely taken as a part of the Effectiveness project. Due to measures focused on capacity load optimization and ineffective generation share diminishment the Companys average fuel rate lowered by 3,6g g/kWh and totaled 343,88 g/kWh. Besides that, thanks to fuel balance diversification, we improved our fuel supply contract portfolio, - remarked Denis Bashuk, the General Director.

Detailed information about OJSC OGK-2 performance for the 6 months of the 2013 in accordance with RAS is available at the companys website in the RAS Accounting Reports section.

For reference:

OGK-2 is a leading heat generator comprising 11 branches - power plants with total installed capacity of circa 18.0 GW, providing about 7% of Russias electricity output. The Company includes: Adlerskaya TPS, Kirishskaya State District Power Plant, Krasnoyarskskaya State District Power Plant 2, Pskovskaya State District Power Plant, Novocherkasskskaya State District Power Plant, Ryazanskaya State District Power Plant, Serovskaya State District Power Plant, Stavropolskaya State District Power Plant, Surgutskaya State District Power Plant 1, Troitskskaya State District Power Plant, Cherepovetskaya State District Power Plant.

The Companys controlling shareholder is Gazprom Energoholding LLC (100% subsidiary of Gazprom OJSC).

* Calculated as a sum of profit before tax and amortization minus interest receivable and participation capital plus interest payable.

  • Peterburgskoe highway 66,
  • Buid. 1, litera A, St. Peterburg, 196140, Russia
  • (812) 646-13-64
  • mail: office@ogk2.ru
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