Power Machines published financial statements, RAS, for the 1st half of 2008

Power Machines published financial statements for the 1st half of 2008. The financial statements were prepared in accordance with the Russian Accounting Standards (RAS).

The financial statements are characterized with great increase of business activity and contraction which influenced revenues and profit.

Revenues of the company in the 1st half of 2008 increased by 31% in comparison with the same period of the last year and amounted to 11 410,7 million Rubles.

Net profit amounted to 34,5 million Rubles in comparison with 590,8 million Rubles of loss in the 1st half of 2007.

Profit before taxation, interest and amortization expenses (EBITDA) amounted to 468,5 million Rubles in comparison with 14,1 million Rubles of loss in the 1st half of 2007.

Financial results show increase of business efficiency of the company and performance of the measures aimed at financial stabilization of the company. Increase of indices is stipulated by realization of large scale projects of supplies of power equipment for TPP-21 and TPP-27 of Mosenergo, Novgorodskaya TPP, Urengoysskaya SDPP, Boguchanskaya SDPP, Volkhovskaya HPP, cascade of Vuoksinskaya HPP in the 1st half of 2008.

In the 1st half of 2008 Power Machines signed contracts to the amount of 75 938 million Rubles which is 3,8 times as much as in the 1st half of 2007. Among the largest contracts of the financial period are contracts for supplies of main power equipment for Novovoronezhskaya NPP-2 and Leningradskaya NPP-2 (over 40 billion Rubles), contract for supplies of auxiliary equipment for power unit No.4 of Kalininskaya NPP (over 4 billion Rubles), contracts for supplies of power equipment for Tverskaya TPP-3, Kostromskaya TPP-2 and Yaroslavskaya TPP-2 which are the part of JSC TGC-2 (over 3 billion Rubles), and Urengoyskaya SDPP of JSC OGK-1 (about 3 billion Rubles), contract for supplies of main power equipment for Sisak-3 TPP in Croatia under construction (about 72 million USD) and others.

Operation income of the company in the financial period increased 2,3-fold. In the end of the period the operation income amounted to 24 122,9 million Rubles. At that Power Machines continued to cut the amount of foreign loans. In comparison with the same period last year average credit portfolio decreased 2,4-fold and made 4 billion Rubles, which led to make the interest expenses more than three times less.

The financial period the volume of money of the company exceeded the volume of foreign credit by 4 846,6 million Rubles whereas in the 1st half of 2007 net debt of the company amounted to 7 359 million Rubles.

Essential money increase helped both to finance the company’s activity and to invest almost 2 billion Rubles into technical re-equipment. This index exceeded 10 times the index of the 1st half of 2007. Main stages of the investment program aim at the increase of the acting technological processes and introduction of new technological processes, re-equipment of key productions with modern technological equipment.

See below the key indices of the company’s activity:



1st half of 2008
(thousand Rubles)

1st half of 2007
(thousand Rubles)

Deviation
(thousand Rubles)

Revenues

11 410 746

8 739 283

2 671 463

Net profit (loss)

34 549

(590 855)

625 404

Profit before taxation, interest and
amortization expenses (EBITDA)

468 479

(14 072)

482 551

Free cash flow

6 613 909

(625 621)

7 239 530

Net debt

(4 846 641)

7 359 052

(12 205 693)

Contraction

75 938 298

19 875 647

56 062 651