OREANDA-NEWS. On 03 April 2013 OJSC "IDGC of North-West" has published the consolidated IFRS financial statements for the year ended 31 December 2012.

The consolidated IFRS financial statements include OJSC "IDGC of North-West" and the following subsidiaries: OJSC "Pskovenergoagent", OJSC "Pskovenergosbyt", OJSC "Pskovenergoavto", OJSC "Lesnaya skazka", OJSC "Energoservice North-West".
The revenue for 2012 increased by 0,4 % in comparison with the similar period of 2011. Revenue from power transmitting decreased by 0,8% (to 26 565 million rubles), revenue from sale of electricity decreased by 3,8% (to 4 994 million rubles), revenue from connection of power network increased by 59,7% (to 1 412 million rubles).

Decline of revenue from power transmitting and revenue from sale of electricity in spite of increased useful electricity supply to customers is revised downward tariff decision according with Government Decree of 29.12.2011 № 1178 from 04.05.2012 № 442. Revenue from connection of power network increased due to the execution of contracts with consumers.

The operating expensesfor 2012 increased by 2,7% in comparison with the similar period of 2011 and amounted 32 944 million rubles. Operating expenses increased due to inflation and a rise of costs beyond the control of the Company, including an increase in fees for the power transmitting to OAO "UES FGC" and in depreciation due to increased volume of capital investments.

As a result profit for 2012 reduced of 2.2 times in comparison with the similar period of 2011 and amounted 362 million rubles.

The practice of tariff regulation according to the RAB method involves investments in assets by long-term external financing. This financial strategy reflected on the results of the company: increase in "Property, plant and equipment" (by 3 728 million rubles.) due to the volume of the investment program and in "Long-term loans and borrowings" (by 4 481 million rubles.).

EBITDA for 2012 amounted 3 983 million rubles (decreased by 9,4 %). Leverage (DEBT/EBITDA ) increased from 1.07 to 2.49 because of a rise of debt due to the restructuring of the loan portfolio and because of a decline of EBITDA.

Implementation of the project of parallel accounting of consolidated IFRS financial statements on the base KIS NBU Energo on 1C: Enterprise 8 allowed to prepare quarterly IFRS financial statements, to reduce the time for preparation of consolidated IFRS financial statements, to improve quality, to decrease the cost of training, control and audit.

IFRS Auditor is CJSC "KPMG". The Company has received an unqualified audit report on 31 March 2013.