OJSC "Power Machines" published its accounting statements for the first half-year of 2007

OJSC “Power Machines” has published its accounting statements for the first half-year of 2007 prepared in accordance with the Russian Accounting Standards (RSBU).

The Company revenues in the first half-year of 2007 show the 22% increase over the results of the same period of the previous year and are equal to 8,739 million rubles. The revenues from sales (operating profit) have reached 310 million rubles in contrast with the losses incurred in the same period of the last year in the amount of 123.5 million rubles. The improving performance is mainly attributable to the successful implementation of contracts for supply of equipment to Lukomlskaya HPP (Belarus), Sangtudinskaya HPP (Tajikistan), Agios Dimitrios TPP (Greece) and JSC “Mosenergo.”

Notwithstanding the positive dynamics of the financial indices the Company has incurred the net loss in the amount of 590.8 million rubles. The loss is mainly the result of the penalties paid in connection with the performance of the contract for reconstruction of Asuanskaya HPP which was executed in 2003. Negative influence on the financial statements was also caused by the exchange losses incurred in connection with strengthening of ruble.

The key indices of the Company performance are as follows:


1 half-year 2007 (thousand rubles)

1 half-year 2006 (thousand rubles)

Revenues

8,739,283

7,179,909

Cost 

(6,763,191)

(5,528,696)

Gross profit 

1,976,092 

1,651,213

Profits (loss) from sales

310,421

- 123,533

Net profit (loss) 

- 590,855 

- 136,729