OREANDA-NEWS. JSC “MOESK” declares operating and financial results for I quarter of 2014: “boiler” productive supply amounted to 19.3 bln kWh, losses reduced to 10.16%, actually connected capacity increased up to 341.4 MW, net profit of the Company according to RAS amounted to RUR mln 3,415.

Operating results

Electric power transmission

Grid output for I quarter amounted to 24.2 bln kWh, which is 2.0% lower than index for the similar period of 2013, herewith, the Company reduced losses by 1.6 p.p. up to 10.16% of grid output. “Own” productive supply for I quarter reduced by 0.2% to 21.8 bln kWh, “boiler” productive supply reduced by 0.9% to 19.3 bln kWh.

In Moscow “boiler” productive supply reduced by 1.5% to 9.2 bln kWh, and in Moscow region - by 0.3% to 10.1 bln kWh. The Company managed to reduce losses in these regions by 1.6 p.p. to 9.34% and by 1.5 p.p. to 11.02% correspondingly.

In connection with abnormally warm weather conditions, which were in I quarter of 2014, quarter indices of the Company's activity did not reach planned values.

Herewith, plan on losses reduction appeared to be over-fulfilled: significant losses reduction occurred mostly at the expense of successful execution of organizational and technical arrangements of energy-saving program.

Grid connection

Activity results of the Company on grid connection for I quarter of 2014 improved significantly compared with indices of 2013: amount of submitted applications increased by 3.7% up to 16,717 pcs., and capacity on submitted applications - by 2.2% up to 1,479.5 MW. Herewith, number of concluded agreements and capacity on them increased by 13.6% up to 14,192 pcs. and by 135.1% up to 986.0 MW correspondingly.

Actual connection for I quarter of 2014 reached 11,982 pcs., which is 160.0% more than the index for the similar period of the past year. Actually connected capacity, herewith, increased by 41.2% up to 341.4 MW.

Indices improvement on grid connection is caused by active development of Moscow region and connection of large consumers: for example, CJSC “Balashikha electric grid” on behalf of CJSC “MosOblInvestStroi” - 5,500 kW, LLC “A G C Flat Glass Klin” - 10,000 kW.

Financial results

Due to the results of I quarter of 2014 the Company received proceedings in amount of RUR mln 32,214, which is 1.5% higher than the index of the previous year. Proceedings increased at the expense of electric power transmission: proceedings from this type of activity increased by 2.1% up to RUR mln 30,127, while proceedings from grid connection reduced by 7.9% to RUR mln 1,969.

Proceedings increase from electric power transmission is tied with the growth of “boiler” tariffs in I half year of 2014 as regard to I half year of 2013. Proceedings reduction from services rendering on grid connection is tied with the change of legal regulatory acts, which regulate grid connection activity. From 01.01.2011 payment for grid connection includes expenses only on electric grid facilities construction - from existing electric grid facilities to connected power receivers and (or) electric power industry facilities. Earlier payment for grid connection included expenses for reconstruction of power and distribution grid.

Cost value increased by 13.8% up to RUR mln 26,994, including cost value of electric power transmission amounted to RUR mln 26.723 (+13.5%), and cost value of grid connection - RUR mln 210 (+27.0%). Cost value increase of services on electric power transmission is caused mostly by growth of services cost of grid organizations (MUE, TGO) and JSC “UES FGC”.

EBITDA index for I quarter amounted to RUR mln 10,887, and net profit of the Company amounted to RUR mln 3,415.