Russia’s Federal Grid Company posts FY 2010 net income of 27.9 billion roubles

Russia’s Federal Grid Company, (FGC) the operator and manager of Russia’s unified electricity transmission grid system, has posted a FY 2010 adjusted net profit of 27.9 billion roubles

The net profit is up 62.6% from the FY 2009 net profit of 17.160 billion roubles, with adjusted EBITDA rising 58.9% year on year to 67.717 billion roubles on the back of 29.4% increase in revenues from 87.580 billion roubles to 113.330 billion roubles. The company attributed the results to higher revenues from electricity transmission and income from non-core activity, such as services on project development, R&D, communications services, and lease income. Oleg Budargin, Chairman of the Management Board, hailed the results saying that the company has successfully overcame the recession and its focus on investment strategy and modernization has already shown impressive results “2010 was a challenging, eventful and productive year for Federal Grid, and we are pleased with the outcome. In 2010 Russia was still overcoming the consequences of the Global financial crisis and the resulting severe recession. Consequently, the reduction of costs and efficiency savings were among our top priorities. However, it was also a year of a significant investment in construction and modernization, as Federal Grid started its ambitious five year investment programme that will see the construction of 123 new high-voltage power lines with voltage of 220-750kV and total length of circa 21,000 km, and 73 new substations with voltage of 220-500kV and total capacity of 89,180 MVA.”Andrey Kazachenkov, Chief Financial Officer was upbeat about the results saying that the new standards and extensive framework will further support company’s financial and operational success“These strong results clearly demonstrate that Federal Grid continues to deliver on its long-term strategy of combining the overall objective of playing its vital role of maintaining the stability of the Russian energy system and therefore safeguarding the national economy with delivering value to our shareholders.”