OREANDA-NEWS. IDGC of Centre has published its unaudited interim consolidated financial statements for the 1st half of 2014 in accordance with the International Financial Reporting Standards (IFRS). IDGC of Centre's revenue for the period amounted to 47,7 bln RUB, including from the provision of electricity transmission services - 31,5 bln RUB, from the provision of electricity grid connection services - 0,8 bln RUB, from the resale of electric energy and power - 14,9 bln RUB. Profit for the period showed a positive trend and was 2,6 bln RUB against 0,6 bln RUB for the same period in 2013.

The company's performance in 2013 of the functions of a supplier of last resort in the Bryansk, Orel, Kursk, Tver and Smolensk regions had the main influence on the financial performance of IDGC of Centre. Excluding the effect of the new activity the revenue from electricity transmission for the 1st half of 2014 amounted to 38,3 bln RUB, which is 6.4% higher than in 2013 (36,0 bln RUB) and is mainly due to an increase in the average transmission tariff. Performance of large contracts in the Voronezh and Tver regions and a milestone agreement in the Kursk region significantly affected the growth of revenue from the electricity grid connection services: the indicator increased by 166,7% compared with the data for 6 months in 2013.

Operating expenses of IDGC of Centre in the reporting period increased by 7,5 % to 43,2 bln RUB, primarily due to increased costs for the electricity transmission services through the Unified National (All-Russia) Power Grid and growth of the cost of purchasing electricity losses due to the increase in the weighted average non-regulated prices for electric energy (power). The increase in the operating expenses is also related to the implementation of the functions of a supplier of last resort by IDGC of Centre.

Operating profit of IDGC of Centre reached 4,8 bln RUB (for 6 months of 2013 - 2,1 bln RUB). EBITDA for the 1st half of 2014 increased by 51,7 % compared to the same period last year and reached 9,1 bln RUB. The difference is due to the adjustment of the provision for litigation in the 1st half of 2013.

Decrease in the volume of the electricity transmission services rendered by IDGC of Centre following the results of the first half of 2014 by 1,2% is due to the termination of "last mile" contracts for a number of branches from 01 January 2014 and the decline in electricity consumption by large industrial enterprises.

The total value of the consolidated assets of the company for the six months increased by 3,1% and as at 30.06.2014 amounted to 99,0 bln RUB. Net debt3 reached 33,2 bln RUB (as at 31 December 2013 - 32,0 bln RUB).

"Despite the general instability in the economy, unfavourable external environment, the company has shown a positive trend on the key financial indicators, improving the reliability, quality and availability of power supply to customers," underlined Deputy General Director for Economy and Finance Sergey Rumyantsev.