OREANDA-NEWS. September 05, 2013. Joint Stock Company “Moscow United Electric Grid Company”, one of the largest regional distribution companies of the Russian Federation has published the accounting reports for the first half year of as part of the quarterly report, prepared according to the Russian Accounting Standards (RAS).

Profit and loss statement

According to the reports for the 1st half year of the total proceeds have increased by 7. 1 % as compared to the result of the 1st half year of 2012 and amounted to RUR 59, 083 mln. Thereby, the proceeds from the electric power transmission has increased by 11. 4 %, the proceeds from the technological connection has decreased by 25. 9 %. Positive dynamics of the proceeds for the electric power transmission is related first of all with the scope growth of the productive supply of electric power in the grid and the tariff growth for electric power transmission.

The proceeds decrease from the technological connection as compared to the similar period of year 2012 is related with reduction of the stake of contracts in the proceeds, concluded before 01. 01. 2011 (at the “previous tariff”) and increase of a stake of the contracts concluded after the tariff policy change (tariff reduction for the technological connection).

First of all, the prime cost has increased by 6. 3 % and amounted to RUR 45, 604 mln. , mainly due to the uncontrollable costs growth as regards the grid organizations’ services (Municipal State Enterprises, Territorial Grid Organizations), expenses for the electric power purchase to compensate for losses, expenses for the services of JSC “UES FGC” and depreciation allocations.

As a result of the more significant increase of the proceeds as compares to the prime cost growth, the gross profit increase by 9. 9 % has taken place.

Total on the net profit – is RUR 5, 951 mln. , which is by 45. 4 % lower than the value of the similar period of the past year. The net profit reduction is related with the negative balance increase of the miscellaneous incomes and expenses. The increase of miscellaneous expenses is related with a reserve creation on the accounts receivable in respect to the technological connection within the framework of “One window”.

Main indicators of the activities efficiency have decreased by in relation to the results of the similar period of the past year. So, the net profit decrease against the background of the proceeds growth resulted in the profitability decrease as regards the net proceeds to the level of 10. 1 %, the decrease amounted to 9. 7. The profitability on EBITDA following the results of the 1st half year of amounted to 31. 9 %, which is lower than the similar period of the past year by 5. 8 % mainly owing to the increase of the negative balance and miscellaneous incomes and expenses.

Bookkeeping balance sheet
For the reporting period the currency of the balance sheet has increased by 5. 7 %, having reached the value of RUR 284, 755 mln. Thereby, the noncurrent assets the stake thereof in the total assets amounts to 80. 3 % have grown by 9. 3 %.

The growth is mainly preconditioned by the increase in the most significant item of the section – fixed assets. In the current assets, the stake thereof in the total assets amounts to 19. 7 %, the accounts receivable has decreased by 17. 4 % (including, the short-term accounts receivable has decreased by 7. 6 %, the long-term accounts receivable – by 22. 8 %), the stocks have decreased by 2. 3 % and the monetary assets and cash-equivalent items have increased by 361. 8 %. The growth of the monetary assets is preconditioned by the funds reserving for the scheduled credit repayment, the maturity under which – is July of . The accounts receivable decrease is related with the reserves formation by the Company for doubtful debts.

As far as the obligations are concerned, it’s important to specify the unallocated profit increase by 15. 5 %, and a stake decrease of the long-term debts from 18. 6 % to 17. 9 % as a result of the long-term accounts payable decrease under the technological connection contracts. In order to decrease risks in case of a significant growth of interest rates at the borrowed capital market, as well as taking into account a non-stable situation at the financial market, the Company is implementing a smooth transfer from the bank crediting to the public borrowings. So, for the past year, the long-term obligations change of the Company amounted to 2. 2 %, short-term obligations change – 6. 2 %.

The long-term obligations of the Company have increased owing to the indebtedness growth on the long-term credits, including owing to a successful placement of the commercial papers of series BO-01 and BO-02 with the total scope of RUR 10 bln. , with the circulation period of 3 years. The indebtedness increase on the short-term credits has influenced mainly on the short-term obligations growth, due to a partial transfer of the indebtedness from the long-term into short-term indebtedness, as well as owing to the estimated liabilities increase.