JSC TGC-1 published its financial statements for 2011, made under Russian Accounting Standards (RAS).

The Company’s revenue increased by 14% over the last year’s period and totaled 57 billion 691 million rubles. Such an increase was due to the output growth of the Company’s power plants which, in turn, happened as a result of commissioning new high efficiency capacities and increase of regulated and free electricity and heat prices.

The major share of the revenues (64.9%) stems from electricity and heat sales of 37 billion 424 million rubles, an increase over 31 billion 040 million rubles in 2010 (+20.6%). Revenue from heat sales increased by 5.4% up to 19 billion 999 million rubles which was a result of tariff’s growth during the accounting period along with a reduction of the heat output due to high ambient temperature.

Cost of goods sold for the main products increased by 16.6% from 44 billion 707 million rubles in 2010 to 52 billion 134 million rubles in 2011. This growth was mainly due to an increase of fuel expenses as a result of growth of TGC-1 CHPPs’ generation and increase of the fuel costs. In 2011, CHPPs generation increased by 14.8% compared to 2010, and HEPP’s output was reduced by 7%. The increase of costs of goods sold was also due to an increase of energy costs and purchasing of capacity to meet obligations under free-trade contracts and export supplies, as well as due to an increase of expenses for heat transmission services.

Therefore, TGC-1’s operating profit in 2011 amounted to 5 billion 557 million rubles (-5.9% compared to the last year). TGC-1’s net profit for 2011 increased by 4% over 2010 and totaled 3 billion 757 million rubles.

As of December 31, 2011, the Company’s assets amounted to 115 billion 843 million RUR, which was a 12.5% increase compared to the beginning of the accounting period (as of December 31, 2010, it was 102 billion 954 million rubles).

Details of TGC-1’s performance are shown in the table below: