E.ON Russia JSC has published audited financial statements, prepared according to IFRS standards, for the first half of 2011.
E.ON Russia's profit in the first half of 2011 increased by 31.2% in comparison with the same period of 2010*, reaching 31,323 billion rubles. Operating expenses rose by 21.7%, up to 22,739 billion rubles. Profit before taxation amounts to 8,855 billion rubles, which is 57.3% higher than in the period from January to June 2010.
Net income of the company in the first half of 2011 went up by 57.6% to 7,091 billion rubles.
The increase in E.ON Russia's income and profitability is determined by higher power generation, which is due to the commissioning of new power units; primarily the 400MW CCGT of Shaturskaya GRES put into operation in the 4th quarter of 2010. Furthermore, since May 1 and June 1, energy generated by the new power units (No. 7 and No. 8) of Surgutskaya GRES-2 has been sold on a day-ahead basis. The key parameter changes are also attributable to price growth on the wholesale electricity market and efficient cost management at the company.
*Financial data for 2010 were amended for comparability with those of 2011, as consistent with the accounting policy changes for revenue recognition on sales contracts and repurchase of electric power (cross charging was implemented for such income types).