The Management Board of Generation Company Four of the Wholesale Power Market (OGK-4) considered results of financial and economic activity of the Company for H1 2007. The proceeds of OGK-4 from sale of goods, products, work and services calculated in accordance with the Russian Accounting Standards (RAS) were equal to 14,971.5 million rubles, and the product cost was equal to 13,553.3 million rubles.
The EBITDA index (Earnings before Interest, Taxation, Depreciation and Amortization) was equal to 1,941.2 million rubles, profitability related to this index - 13%. The profit of OGK-4 before taxation for H1 of 2007 was equal to 1,415.2 million rubles. The net profit was equal to 982.6 million rubles, and rate of return in relation thereto - 6.6%.
It seems incorrect to compare financial indices of activity of OGK-4 for H1 2007 with similar indices for 2006. OGK-4 was registered as a corporate entity on March 4, 2005, and from September 1, 2005 to July 1, 2006 the major business activity of the company was provision of services related to the performance of functions of the sole executive body. Upon completion on July 1, 2006 of the reorganization process in the form of a takeover of Surgutskaya GRES-2, BGRES-1, Shaturskaya GRES-5, Smolenskaya GRES, Yayvinskaya GRES, OGK-4 has been operating as a unified production company.