OREANDA-NEWS. March 21, 2007. In 2006 JSC “IDGC of Center and North Caucasus” in the course of reaching the strategic economic and finance targets for planned to increase business effectiveness and investment attraction, balance sheet structure optimization and appreciation of the distribution network companies in the IDGC service area, reported the press-centre of  “IDGC of Center and North Caucasus”.

According to the finance and economic activity results in 2006 the targets were reached. This was agreed on at a meeting which was held in JSC “IDGC of Center and North Caucasus” on March 20-21.

All finance and economic key performance indicators of JSC “IDGC of Center and North Caucasus” activity in 2006 were met (except for the following companies which withdrew from the JSC “IDGC of Center and North Caucasus” – JSC “Kalmenergo” in the Ist quarter and JSC “Kubanenergo” in the IVth quarter didn’t reach the acid test ratio).

The JSC “IDGC of Center and North Caucasus” net profit in 2006 amounted to 2mld344mln rubles and exceeded the planned sum by 394,1 mln rubles.

ROE index (acid test ratio) for last year reached 3.03%, which is 0,5% higher than planned (in absolute terms).
The company shareholders’ equity is 77mld 396mln rubles. Compared to 2005 it has increased by 13 mld 222mln rubles.
Summarizing the results of 2006 in the RNCs in the JSC “IDGC of Center and North Caucasus” service area the share of long term loans for the implementation of the important investment projects has grown by 149%.

“Whereas the standard of promissory position management which was applied last year, didn’t allow companies to use borrowed funds as uneffective financial leverage, the activity results are positive, - said Evgeni Bronnikov, Director of Finance and Economics of JSC “IDGC of Center and North Caucasus, - The new standard will be used in 2007, which will extend the RNC borrowing possibilities. This is important for the renewal of fixed production assets, connection of new customers in limited tariff conditions. Without this we cannot meet the growing demand for power energy. In 2007 we will analyze different types of loans: cj-loans, bond loans and etc. The total amount should equal 6-8 mld rubles”.

The increase of investments, received asreached new connection can be added to the results of business efficiency upgrading. In 2006 they amounted 1,658 mld rubles.

The leasing package was also formed in 2006, and it allowed to increase the number of investment programs. For this year the company plans to enhance its 2006 leasing portfolio by 161%, i.e. by 1,75 mld rubles.

According to the rate regulation for power energy distribution services in 2007 the average tariff in RNC (IDGC-1 service area) reached 48,5 cp/kWh (19% of growth). At that the regional indices growth – 17%, (including  growth of investment sources 25%), the growth of federal indices – 22%(including FDC fee – 9%, losses – 38%).