OREANDA-NEWS. Bashkirian Power Grid Company, subsidiary of Sistema JSFC, the largest publicly-traded diversified holding company in Russia and the CIS, announces its audited financial results in accordance with International Financial Reporting Standards (IFRS) for the fourth quarter and full year ended 31 December, 2013.

KEY FINANCIAL RESULTS FOR Q4 AND FULL YEAR 2013:

- Revenue increased by 16.1% in 2013 YoY and reached RUB 13,523 mln. In 4Q 2013, revenue rose by 38% YoY up to RUB 3,842 mln. Revenue growth was largely driven by the increase in electric power output and indexation of tariffs.

- OIBDA went up by 30.9% in 2013 YoY to RUB 5,550 mln following revenue growth and optimisation of operating expenses. In 4Q 2013, OIBDA amounted to RUB 1,426 mln, which exceeds the result of 4Q 2012 by RUB 1,142 mln or 402.1%.

- OIBDA margin for the full year 2013 amounted to 41.0%, and to 37.1% in 4Q 2013.

- Net income rose by 65.9% in 2013 YoY and reached RUB 3,396 mln. In 4Q 2013, net income amounted to RUB 845 mln as compared to net loss of RUB 201 mln in 4Q 2012.

KEY OPERATING RESULTS

- Electric power consumption increased by 2.58% in 2013 YoY as a result of an increase in the number of new consumers and growth of gross regional product in Republic of Bashkortostan.

- In 2013, as a result of successful implementation of an investment programme and shortened time required for new connections, 17,180 of new consumers were connected to Bashkirenergo distribution power grids, which is 32.6% more than in 2012.

- Distribution power losses declined from 8.67% to 8.25% YoY due to the installation of electricity meters with higher accuracy as part of a modernisation programme. Transmission grids losses also reduced by 0.14 p.p.

Commenting on the company's results for the full 2013 year, Andrey Makarov, CEO of BPGC, said:

"The year 2013 was really successful for our company. Revenue rose by 16.1% YoY and OIBDA margin expanded by 4.6 p.p. to 41.0%. The company reported net income of RUB 3,396 mln. These strong financial results were achieved due to consistent implementation of our business optimisation strategy and successful execution of investment programme worth RUB 3,481 mln. We carried out a large amount of construction and renovation works, continued implementation of the programme for improving energy conservation and efficiency and renewed our fleet of special-purpose vehicles.

BPGC has leading positions in Russian power grid segment in terms of operating efficiency. We are implementing a project aimed at automating management processes, we are cutting power losses in grids, while in our investment policy we focus on the construction of new assets, renovation of power grid equipment and special-purpose vehicles.

BPGC Group confirms its client-oriented approach, managing its relations with consumers and improving investment climate in the region. In 2013, we connected 17,180 of new consumers, 32.6% more than in 2012. Our web site now has an automated function for visitors, which allows creating an application for connection online.

Stable results enable us to embark on the execution of large-scale projects involving introduction of Smart Grid elements. In partnership with Siemens and The Israel Electric Corporation Ltd we started the development of a project aimed at upgrading the power grid infrastructure of the city of Ufa."