OREANDA-NEWS. For 9 months of 2007 Power Machines upped its net losses by 2.1 times versus the similar period of 2006, Veles Capital's research department reports with reference to the official message of the company. Over January-September, net losses of company by RAS formed 1 044.904 mn RUR, versus 492.841 mn in 2006. One of the main reasons to bring such losses is fines under contract on reconstruction of Asuanskaya HPP, signed back in 2003, says the company. To remind, that negative results of Power Machines continue their way throughout two quarters in a row: losses on 1H accounted for 590.86 mn RUR. First quarter was more profitable for the company, with net profit making 245.28 mn RUR, brought by the implementation of various projects. 'Entrance fee' for foreign energy markets was too high, bringing down Power Machines over two years with consecutive losses.

Fundamental results of Power Machines' activities decrease cash flows and obviously the value of the company. However, due to external factors, such as: intensive development of power industry in near future and the fact that Power Machines is virtually the single company of Russia to be engaged in this specific business, make the company into an attractive asset, express their opinion the Veles' analysts.