OREANDA-NEWS. September 02, 2011. MRSK Volga released its 1H11 IFRS results which look quite strong overall. Revenue rose 22% YoY while we expect the full-year growth rate to be a negative 1% (consensus expects 10% growth for the full year), reported the press-centre of ATON.   

EBITDA increased by a substantial 205% YoY, while we expect 15% for the full year (consensus: 41%).
 
If the 1H11 earnings growth rates continue for the next half of the year, the full-year results would beat consensus and our estimates on the top line and EBITDA. However, we remind readers that the government reduced tariffs for MRSKs on 1 May, so we caution that the potential for a decline in EBITDA and net income growth rates in 2H11 is very likely. Therefore, we view the results as only marginally positive for the stock price at the moment.