Revenue of the JSC "Moscow United Electric Grid" IFRS for the I half of 2014 is 60.3 billion rubles

JSC "Moscow United Electric Grid" today announced its financial results in accordance with the unaudited IFRS financial statements for the I half of 2014. The Group's revenues amounted over 60.3 billion rubles on a consolidated basis, EBITDA amounted 17.3 billion rubles. The Group's profit for the half-year results in 2014 amounted to 4.3 billion rubles.

Group revenue for the I half-year reached 60.3 billion rubles, Particularly from electricity transmission JSC "Moscow United Electric Grid" has received 55.8 billion rubles, which is 2.97% higher than last year, and from technological connection - 4.1 billion rubles. 3% increase in revenue from the provision of services for the transmission of electricity has happened due to the growth of the "uniform" of tariffs in the I half of 2014 in the I half-year 2013

The decrease in revenue from technological connection to electric networks of JSC "Moscow United Electric Grid" by 38.3% is compared to the corresponding period last year due to a change of legal acts regulating the activities of technological connection. On 01.01.2011 the fees for connection costs are included only for the construction of transmission facilities - from the existing electric grid facilities to connected power devices, and (or) energy facilities. Earlier part of connection fee was included in the costs for the reconstruction of the supply and distribution network.

Operating expenses of the Group for the I half of 2014 amounted 54.4 billion rubles. The increase in operating expenses by 5% is compared with the corresponding period last year, mainly influenced by the increase in the cost of electricity transmission. Thus, the cost of electric power transmission increased by 21% and amounted to 27.9 billion rubles. Incl .
• 43% increase in the cost of services of territorial grid companies on the results received in the current period tariff decisions;

• 7% reduction of payments in order to compensate for the loss of electricity, due to a decline in losses and a decrease in the weighted average price for the purchase of electric power losses compared to the same period last year;

• an increase of 11% of the costs for the services of "FGC UES" due to growth of the installed capacity, as well as the rate for the maintenance of networks and tariffs to pay for losses as a result of regulations adopted in the current period tariff decisions.

Another significant component of the Company's expenses - amortization, increased by 17% (due to the increased amount of depreciable fixed assets stemming from the rise of input objects in fixed assets as a result of reconstruction and capital construction).

Company in accordance with the program management costs reduced in 2014, general and administrative expenses of the Company not less than 15% of their actual value in 2013, respectively, this fact is reflected in the reduction of administrative costs for the I half of 2014 to 141 million rubles.

In the I half of 2014, according to the unaudited consolidated statements, JSC "Moscow United Electric Grid" made a profit of 4.3 billion rubles.

Reference. In the consolidated financial statements the following subsidiaries are included: JSC "Moskabel'set'montazh" (MKSM), JSC "Moskabel'energoremont" (MKER), "Plant Electrical Equipment Repair" (RETEP), JSC "Energy Center".