OREANDA-NEWS. Federal Grid Company of Unified Energy System ("Federal Grid Company" or "the Company") (Moscow Exchange, LSE: FEES) announces its financial results for Q1 2013 under Russian Accounting Standards (RAS).

The Company’s RAS accounts do not consolidate the results of Federal Grid Company subsidiaries or affiliated companies that operate as independent legal entities.

Key financialperformance:

Revenue of RUB 37,497 million

Adjusted EBITDA* of RUB 24,349 million

Gross profit of RUB 8,371 million

Profit before tax of RUB 1,281 million

Adjusted net profit* RUB of 4,221 million

* excluding adjustments to provisions for the impairment of accounts receivable

Federal Grid Company's revenue for Q1 2013 increased by 10% year-on year to RUB 37,496 million. This was primarily due to higher revenue from electricity transmission as a result of the 11% tariff increase that took effect from 1 July 2012.

Excluding depreciation of fixed assets (RUB 17,582.8 million), property tax (RUR 917.3 million) and expenditures for electricity transit (noncontrollable costs), operating expenses amounted to RUB 12,346 mln in Q1 2013, up 7.4% y-o-y.

Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by RUB 2,066 million (9.3% y-o-y) and amounted to RUB 24,349 million for Q1 2013, primarily as a result of the Company’s higher revenue.

Federal Grid Company's other income for Q1 2013 decreased by RUB 14,911 million (-70% y-o-y), to RUB 6,451 million. The Company's other costs for Q1 2013 decreased by RUB 11,654 million (-48% y-o-y), amounting to RUB 12,298 million. These changes were primarily due to the accounting treatment of the redemption of promissory notes in 1Q 2012 for financing the Company’s investment programme.

Federal Grid Company’s adjusted net profit (excluding adjustments to provisions for the impairment of accounts receivable) amounted to RUB 4,221 million for Q1 2013.

Balance sheet as of 31 March 2013

Assets

Federal Grid Company's total assets decreased by RUB 6,392 million (-6%) during Q1 2013 and stood at RUB 1,116,602 million. Non-current assets amounted to RUB 1,010,819 million, and current assets amounted to RUB 105,783 million,

The RUB 848 million (-0,1% y-o-y) decline in non-current assets was primarily due to the decrease in fixed assets as a result of higher amortisation charges.

The decrease in Federal Grid Company’s current assets by RUB 5,545 million (-5% y-o-y) was due to a RUB 10,921 million (-18% y-o-y) decline in accounts receivable, a growth in short-term financial investments of RUB 3,000 million (12% y-o-y) and an increase in cash of RUB 1,303 million (7.44% y-o-y).

Federal Grid Company's capital decreased by RUB 1,376 million (-1%) during the period due to the Q1 2013 loss of RUB 1,376 million.

The Company's total debt during Q1 2013 decreased by RUB 10 billion (-4.7%) compared to 31 December 2012 and amounted to RUB 202.5 billion, due to repayment of bank loans and placement of RUB 10 billion of series 24 bonds to finance the investment programme.