Generation Company Four of the Wholesale Market of Power and Energy (OGK-4) has submitted its first Consolidated Financial Statements of OGK-4 Group ("Group") for 2005 prepared in accordance with the International Financial Reporting Standards (IFRS). The statements were audited by PricewaterhouseCoopers Audit.
The Financial Statements of the Group account for the performance of OGK-4 and BTPP-1 with its affiliates ( Transavto, SMU, and KATEKenergoremont), as BTPP-1 shares were provided by the sole founder, RAO UES of Russia, as a contribution to the authorized capital at the time of founding of OGK-4.
These Financial Statements of the Group for 2005 do not reflect the performance of Shaturskaya TPP-5, Smolenskaya TPP, Surgutskaya TPP-2, and Yaivinskaya TPP, which as of the Statements date were not part of the Group in accordance with IFRS. As of December 31, 2005, these joint stock companies were separate legal entities, where OGK-4 performed the functions of a sole executive body. The takeover by OGK-4 of the said companies, as a result of which they became part of the Group, was completed July 1, 2006.
According to the Group Consolidated Financial Statements, the total assets as of December 31, 2005, were 6.5631 billion rubles. The fixed assets of the Group as of December 31, 2005, were 5.6607 billion rubles. The receivables of the Group as at the specified date were 434.4 million rubles, with the payables equal to 655.6 million rubles.
The Group's operating incomes in 2005 amounted to 3.0712 billion rubles. The operating expenses in 2005 were 3.0024 billion rubles. The Group's profit before tax for 2005 was 84.5 million rubles. The Group's net profit for the 12 months of 2005 was 155.5 million rubles. The fact that the net profit exceeded the profit before tax is due to the different approaches applied to the recognition of income and expense for taxation purposes and in IFRS-based financial statements.