OREANDA-NEWS. September 08, 2011. MRSK Urals released its 1H11 IFRS financial results which look quite solid overall due to the introduction of RAB methodology in most of the regions in which the company operates, reported the press-centre of ATON.

As a result, revenue rose 8% YoY while we expect the full-year growth rate to reach 13% (consensus FY forecast: 31%). EBITDA increased by 17% YoY and net income by 37%, while we expect EBITDA growth to reach 1% for the full year (consensus: -4%) and net income to rise 24% (consensus: 9%).
 
If the 1H11 earnings growth rates continue for the next half of the year, the full-year results would beat consensus and our estimates on EBITDA and the bottom line. However, we remind readers that the government reduced tariffs for MRSKs on 1 May, so we caution that the potential for a decline in EBITDA and net income growth rates in 2H11 is high. Therefore, we view the results as only marginally positive for the stock price at the moment.