OREANDA-NEWS. OJSC TGC-1 releases its abbreviated audited consolidated Financial Statements for the 12 months period, ended December 31, 2013 prepared in accordance with International Financial Reporting Standards (IFRS).

EBITDA is calculated as Operating profit + Depreciation of PP&E + Amortization of intangible assets and investment property

Consolidated TGC-1 revenue for FY 2013 totaled 69,853 mn RUR, growing thus by 12.4% year-on-year. Revenue structure reflects the following dynamics:

- Revenue from electricity sales grew by 9.5% and totaled up to 28,014 mn RUR mostly on the back of the growing prices at the “day-ahead” market by 13.8%;

- Revenue from capacity sales increased by 26.6%, which totaled 13,876 mn RUR on the back of capacity sales at the wholesale market by the CCGT-450 at Pravoberezhnaya CHP and CCO price growth. Revenue from capacity sales under CSA demonstrated 48.0% growth year-on-year, revenue from capacity sales under CCO increased by 9.5%;

- Revenue from exports grew by 16.6% to 930 mn RUR as a result of positive price dynamics at NordPool market;

- Revenue from heat sales totaled 25,952 mn RUR and increased by 9.5%, resulting from growing heat tariffs since July 1, 2013.

Operating expenses for the 12 months of 2013 grew by 14.7% year-on-year, up to 59,962 mn RUR.

Variable costs grew by 8.8%, up to 38,585 mn RUR. That was reasoned by the following factors:

- fuel expenses increasing by 8.5% due to fuel price growth and decreased share of hydrogeneration reasoned by lower water content in 2H 2013;

- Growth of electricity, capacity and heat purchases expenses by 9.0%, resulting from growing prices at the “day-ahead” and growing purchases for export.

Fixed costs were considerably affected by provision for impairment of accounts receivable of 1,137 mn RUR. Adjusted to this parameter fixed costs grew by 1.3% to 13,992 mn RUR mainly due to the following factors:

- Taxes increased by 26.3% due to downside correction of the property tax amount in 1Q 2012 for the previous periods and cancellation since the beginning of 2013 of the tax allowances for heating networks;

- Fees of electricity market operators increased by 14.5% due to the new capacities at market;

- Reduction of repairs and maintenance costs by 5.9% on the back of rescheduled works plan.

Amortization & depreciation grew by 14.7%, up to 6,407 mn RUR, in connection with the commissioning of new equipment. Other operating income for the 12 months of 2013 decreased by 69.6%, down to 462 mn RUR due to high base effect year-on-year and because of large non-core asset sale in 3Q 2012.

Operating profit for FY 2013 increased by 0.1% year-on-year totaling 9,891 mn RUR. EBITDA amounted to 16,298 mn RUR, which corresponds to 5.4% growth year-on-year.

According to the Financial Statements the profit grew by 8.2%, amounting to 6,768 mn RUR.