OREANDA-NEWS. On 05 August 2008 was announced, that the completed acquisition of JSC “Murmanskaya CHPP” had significant effect on the results of TGC-1’s operations in the reporting period. The acquisition of 84.06% of shares in Murmanskaya CHPP, which was earlier under control of RAO UES, was completed in May 2007. TGC-1 accounted for this transaction as for a business combination amongst entities under common control using the pooling of interest method. Therefore, comparative information for the year ended 31 December 2006 in the consolidated financial statements has been presented as if Murmanskaya CHPP had been a subsidiary of the Company since 1 January 2006.

Besides, in autumn 2007 TGC-1 issued additional shares for the amount of RUR32, 400m to finance the Investment Programme.

In 2007 the Company’s revenue increased by RUR5,048m, thus, exceeding 2006 figures by 21.8%, and amounted to RUR28,246m. Profit growth is explained by increased volume of electricity and heat sales, as well as increase in tariffs, and free market development. The Company’s operating costs in 2007 amounted to RUR24,436m.