OREANDA-NEWS. On 28 May 2008 TGC-1 reported the results of its performance and financial operations in the first quarter 2008.

Electric power generation of the Company’s plants totaled 7,921.7 mil. kWh, which is a 3.3% increase compared to the first quarter 2007.

Net heat deliveries amounted to 9,453.9 ths. Gcal which is a 4.5% decrease compared to the first quarter 2007.

The Company’s proceeds in the first quarter 2008 under RAS amounted to 10,028.3 mil. RUR which is a 16.05% increase compared to the first quarter 2007.

The Company’s expenses referred to net costs are estimated to be 8,866.6 mil. RUR which is a 5% decrease compared to the planned value.

Key factors which impacted the Company’s performance figures in the first quarter 2008 were as follows:

- Extremely high ambient air temperature during the heating period, which resulted in decrease of the net heat deliveries on one hand, and significant reduction of heat generation costs, on the other hand, primarily, the fuel costs.

- Increase of electric power generation by TGC-1 power plants, which helped to reduce costs related to electric power purchasing on the wholesale electric power market, to meet liabilities under regulated contracts.

Therefore, in the first quarter 2008, TGC-1 profit prior to taxation totaled 1,205.0 mil. RUR.

Net profit increased by 30.9% compared to the previous year value and totaled 864.0 mil. RUR. Furthermore, it is important to mention that the Company’s net profit in the first quarter exceeded the business plan value by 32.2%.