OREANDA-NEWS. August 07, 2012. IDGC of the North-West, JSC published H1 2012 accounting statements. The company’s proceeds in the reporting period made 15,313 mln RUR including 14,602 mln RUR falling to the share of proceeds from electric energy transmission services, reported the press-centre of IDGC of North-West. 

The amount of proceed decreased by 5% as compared to the same period of the previous year with the volume of proceeds from electric energy transmission having undergone a 7% drop.

The reduction of proceeds has been conditioned by the results of reconsideration of tariff decisions in pursuance of Resolution No. 1172 of the Government of the Russian Federation “On pricing in the field of regulated prices (tariffs) in electric power industry” dated 27.12.2011.
Pertaining to cost of assets and their formation sources, the reporting period witnessed most essential changes as compared to performance as of 31.12.2011 in terms of the following items:
- book value of fixed assets, having grown by 162 mln RUR as a result of investment programs execution;

- cost of long-term financial investments, reduced by 17 mln RUR due to a subsidiary company liquidation;

- material inventory, increased by 360 mln RUR, to a considerable degree – for purposes of repair program implementation within the framework of preparation for 2012-2013 autumn/winter period;

- receivables, having increased by 283 mln RUR, mainly – due to growing disagreements with retail companies and territorial grid companies;

- against the backdrop of the cash balance decrease, one has observed reduction of the long-term credit portfolio (by 405 mln RUR), short-term credits (by 72 mln RUR) and payables (by 180 mln RUR).

The financial result of the Company following the outcome of the reporting period is profit amounting to 419 mln RUR.

Profitability (with regard to gross profit and proceeds) made 13%, having decreased by 1.7% as compared to the same period of the previous year.

EBITDA indicator (Earnings before Interest, Taxation, Depreciation & Amortisation) in the reporting period made 2,435 mln RUR.

“As compared to the same period of the previous year, the company had to operate under rather complicated conditions,” commented representatives of the Economy Department of IDGC of the North-West. In H1 2011 electric energy transmission tariffs were higher than in the first six months of 2012 due to downscale correction by Resolution No. 1172 of the Government of the Russian Federation and shift of the tariff indexation term in the current year from January 1 to July 1. Another factor was reduction of transmission volume as a result of some consumers having switched over to “direct” contracts for provision of electric energy transmission services with FGC UES, JSC.

Foreseeing reduction of proceeds while planning the company operation, IDGC of the North-West takes actions to restrict controllable expenditures growth. In particular, the Expenditures Management Program (EMP) is oriented at expenditures reduction by at least 3% annually. Additionally, IDGC of the North-West has adopted reviewed Regulations on the Procedure for Carrying Out Standardized Procurement promoting savings in the course of procurement activities with a view of a 10% reduction of expenditures against 2010 prices.

The company is implementing a series of integrated measures aimed at reduction of expenditures and enhancement of activities efficiency including systemic measures for reduction of receivables and losses in the process of electric energy transmission, purchase of equipment requiring lower operational expenses, etc.