JSC “OGK-6”: IFRS Financial Statements for the First 6 Months of 2010

MOSCOW--(BUSINESS WIRE)--JSC “OGK-6” (MICEX - OGK6; RTS – OGKF) reports its Interim Consolidated Financial Statements for the first six months of 2010 prepared in accordance with International Financial Reporting Standards (IFRS).

The company revenues in the first six months of 2010 increased to 22,695 mln roubles or 11% compared to the same period of 2009. Revenues from electricity and capacity sales reached 21,152 mln roubles or 11% more than the results of the same period of 2009. The rise in revenues was caused by the 14% growth of electricity sales at the wholesale market up to 18,475 mln kWh coupled with the growth of the average electricity sale prices by 4% to the same period last year. At the same time revenues from capacity sales fell 4% due to the decrease of capacity tariffs for 2010. Heating sales revenues rose 7% and amounted to 1,298 mln roubles.

The operating expenses grew 25% to 21.7 bln roubles, particularly because of increase in fuel consumption resulted from the growth of electricity production by 25%, as well as due to onetime gas price hike in 2010 contrary to quarterly increases in 2009.

Consequently, operating profit in the reported period amounted to 1,154 mln roubles (-63%), and net profit decreased 70% to 799.9 mln roubles.

Aggregate data of the first six months of 2010 (IFRS) is presented in the table below:

	Six months ended June 30, 2010	Six months ended June 30, 2009	Change %
	thousand RUR	thousand RUR
Revenues	22,695,092	20,446,976	11%
Operating expenses	(21,726,179)	(17,350,480)	25%
Operating profit	1,154,355	3,136,784	-63%
Profit before income tax	1,032,423	3,270,889	-68%
Profit for the period (Net profit)	799,923	2,666,969	-70%
EBITDA*	2,148,388	4,074,067	-47%
Total Assets	72,630,159	69,203,037	5%

*EBITDA= Net profit + Income tax (-tax benefit) +Finance expenses – Finance income + Loss and impairment of property, plant and equipment + Write off and impairment of inventories + Depreciation

The translation into English of the Interim Consolidated Statement on Financial Position, Interim Consolidated Statement of Comprehensive Income, and Interim Consolidated Statement of Cash Flows for the reported period can be found following this link: http://www.ogk6.ru/en/shareholders/finindexs/msfo/2005.php

Note:

The JSC “OGK-6” is one of the largest Russian generating companies. It is composed of five branches: Ryazanskaya GRES, Novochrekasskaya GRES, Kirishskaya GRES, Krasnoyarskaya GRES-2, Cherepovetskaya GRES with the total installed capacity of 9162 MW. The amount of electricity generated in 2009 was 29 billion kWh. Net profit in 2009 in accordance with IFRS made up 2,4 billion RUR. LLC “Gazprom energyholding” (a 100% owned subsidiary of JSC “Gazprom”) controls over 50% of the Company’s share capital.

The JSC “OGK-6” shares are traded at Russian MICEX and RTS. In July, 2008 the GDR program under Reg S and Rule 144A of JSC “OGK-6” shares was opened by Deutsche Bank Trust Company Americas. The ISIN for Reg. S GDRs is US 6708472013; ISIN for the Rule 144A GDRs is US 6708471023.