INTER RAO UES Has Published Its Audited Consolidated Statement For 2010

The cost of the Group’s total assets as of 31 December 2010 were up 1,406.9 million euros (57.5%) compared with the beginning of the year and totaled 3,854 million euros.
The growth of total assets due to the increased cost of the Group’s fixed assets up 921 million euros (48.3%) compared with the beginning of the year was largely attributable to the acquisition of shares in OAO WGC-1 (29.03%), OJSC TGK-11 (5.73%), JSC Petersburg Sales Company (24.99%) and Quartz Group of Companies (50.1%).
Another factor that influenced the growth of assets (156 million euros), is the realization during this period of the project to build a second unit at Kaliningrad TPP (see article Other Current Assets), commissioned in December 2010. Financing of the project was carried out by Gazprom in accordance with the investment agreement (see article Accounts Payable and Accrued Liabilities).
The successful placement of shares as part of an additional issue in favor of Vnesheconombank for the purposes of implementing the investment program of OAO OGK-1 was the main reason for the Group’s increase of capital of 1,090 million euros (83.6%). As of 31 December 2010, capital amounted to 2,395 million euros as against 1,304 million euros at the beginning of 2010. The share premium was fixed at 300 million euros.
Total liabilities totaled 1,460 million euros, up 27.7% on the beginning of the year. The Group’s short-term liabilities as of 31 December 2010 totaled 735 million euros, up 440 million euros (150%) on the beginning of the year, while current liabilities totaled 725 million euros, down 124 million euros (14.6%) on the beginning of the year. Major changes occurred since the reclassification of debt to target funding for the project to build a second unit at Kaliningrad TPP in the order of 357 million euros (from Other Long-term Liabilities in Other Current Liabilities) in view of the approach of the deadline for the object to go into operation.
The Group’s debt load compared with the beginning of 2010 was down from 707 million euros to 675 million euro (4.6%) which was largely due to a decrease in the loan portfolio due to planned and early repayment of the principal, in particular, of debt targeted loans granted by Vnesheconombank for the construction Urengoyskaya GRES OAO OGK-1. At the same time, the year-end ratio of long-and short-term loans changed in favor of long-term totaling 93% / 7% as against 83% / 17% at the beginning of the year.
RAO UES Group revenues for 2010 totaled 2,009 million euros, up 30.2% (465.5 million euros) year-on-year. The increase in revenues was due to increased economic activity in the electricity market expressed as an increase in selling prices and the simultaneous growth of aggregate demand for electricity in Russia and in foreign markets.
Despite the increase in outgoings on electricity and facilities (29.36% or 228 million euros) in terms of price growth on the open market, by reducing the cost of depreciation of the Group’s assets* total costs in this area decreased during the reporting period by 0.4% totaling 1,883 million euro as against 1,890 million euros in 2009.
As a result, operating profit was 186 million euros as against the Group’s operating loss of 300 million euros the previous year.
Operating profit growth was influenced by the increase in net income: 290 million euros as against the 2009 net loss of 282 million euros. Also among the factors of growth of net profit was an increase of a 220-million-euro share in the profit of independently and jointly-controlled enterprises (or up 349.1% compared with 2009), indicating the successful acquisition of shares in Russian energy companies OAO OGK-1 and OAO TGK-11 in 2010.