MOESK released 9M 2012 financial report under RAS

Joint Stock Company “Moscow United Electric Grid Company” (MICEX-RTS ticker: MSRS, Bloomberg code: MSRS RX Equity) one of the largest regional distribution companies of the Russian Federation published financial statements for 9 months of 2012, prepared in accordance with the Russian Accounting Standards (RAS).

Balance sheet total rose by 4.4 % for the reporting period, annual growth accounted to 8.5 %.

Non-current assets increased by 2.8 % within the quarter and by 11.6 % within the year. The growth is driven by steady expanding of fixed assets. Changes in current assets (for the periods + 10.2 % and - 0.7 % respectively) are mainly defined by receivables value which decreased by 2.4 % for 3 months as a result of contraction of budget due and 15.9 % for the year because of investment activity liabilities forward to non-current assets (reclassification of balance).

Concerning liabilities it is essential to point out gradual fall of short-term debt share. Thus the Company managed to achieve indicator reduction from 56.2 % to 50.4 % owing to decreasing of payables associated with investment activity.

Capital and reserves rose by 2.1 % for the quarter and 12.1 % for the year primarily as the consequence of retained profit 5 % quarterly and 32.6 % annual growth.

According to financial statement for the last three months total revenue increased by 49.1 %. Herewith growth of revenue from electric transmission accounted to 48.1 % and from grid connection – to 56.9 %. However in comparison with the results of last year nine months there was a decrease of the measures: total revenue fell by 9.4 %, revenue from electric transmission – by 8.2 %, revenue from grid connection – by 16.4 %.

Corresponding changes occurred in costs: + 49.8 % for three months and – 10.7 % in comparison with last year nine mounts.

Negative dynamics of revenue and costs of sales relatively to the same period of the last year is caused by partial transfer of Moscow “Joint Payment” operator function to JSC “United Utility Company” (OEK).

As the result of mentioned above changes of revenue and costs of sales gross revenue grew by 46.8 % and fell by 4.5 % in comparison with last year nine month period.

Net profit showed a solid growth. Thus it increased by 43.5 % for three months and by 19.2 % in relation to the value as of 30.09.2011. Year-on-year nine month net profit growth was mainly driven by gross revenue rise and other incomes and costs negative margin contraction.

The key efficiency indicators demonstrate positive dynamics relatively to the last year nine month results. Return on EBITDA amounted to 39.68 % exceeding the level of 30.09.2011 by 10.22 p.p. More rapid growth of the net profit in comparison with the revenue let rise return on net profit up to 19.03 % growing by 4.56 p.p. for the last year. Return on equity amounted to 9.23 % relatively to 8.68 % of previous year.

Moreover it is worth mentioning that due to the short-term liabilities decrease owing to fall of payables associated with investment activity there was a growth of current and quick liquidity ratios within the year: from 0.54 to 0.64 and from 0,46 to 0,54 respectively.

JSC “MOESK” key financial performance indicators under RAS

Full version of 2012 9 months JSC “MOESK” financial report under RAS is available on the web-site at: