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OAO EuroSibEnergo summarizes operating results for 2011

EuroSibEnergo summarizes operating results for 2011

• coal production increased by 8.5% to 15.8 mln tonnes.

•revenue increased by 13.9% to RUB 99.248 bln.

• net profit increased by 55.2% to RUB 13.854 bln.

EuroSibEnergo, Russia’s largest private energy company, announces its operating and financial results for 2011.

In 2011, power plants of EuroSibEnergo generated 80.4 bln kWh of electricity, which is 7.6% less than in 2010. The output of the Company’s HPPs (Krasnoyarskaya, Bratskaya, Ust-Ilimskaya and Irkutskaya) exceeded 65 bln kWh (9.3% less than in 2010). Heat energy output of EuroSibEnergo‘s power plants totaled 27.154 thousand Gcal, which is 9% less than in 2010. In both cases, the decrease was mainly caused by adverse water conditions at the HPPs and high air temperature in winter.

The Company’s coal production increased by 8.5% compared to 2010 and amounted to 15.8 mln tonnes. In 2011, the Company switched over to using only its own coal.

The net profit of EuroSibEnergo in 2011 totaled RUB 13.854 bln, which is 55.2% more than in 2010. In 2011, consolidated revenue of EuroSibEnergo (under IFRS) increased by 13.9% to RUB 99.248 bln. The increase in revenue is due to the growth of the main operating results, efficient performance of the Company’s power plants in the wholesale electricity market and well-designed marketing strategy of the Company.

In 2011, EuroSibEnergo’s key investment projects were the following:

• Completing the second part of the Small South project in the Irkutsk Region.

• Continuing the replacement of rotor wheels at the Bratskaya HPP;

• Continuing the construction of external energy supply at Taishet Industrial Hub which is being built;

In 2011, EuroSibEnergo continued its cooperation with China Yangtze Power Co., China’s largest public hydropower corporation. We would like to remind that the companies had agreed to jointly develop the projects for the construction of 10 GW of new capacities (primarily HPPs) in Siberia and the Russian Far East, to meet the demand for electricity in Siberia and organize electricity supply to northern and north-eastern provinces of China.

At present, the companies are developing joint projects with the total capacity of about 3 GW.

Index

2010

2011

Change

absolute

relative,%

Revenue, RUB bln

87.145

99.248

12.103

13.9%

Adjusted EBITDA, RUB bln

27.410

30.179

2.769

10.1%

Net profit after adjustments, RUB bln

8.924

13.854

4.93

55.2%

CAPEX, RUB bln

12.595

12.577

- 18

- 0.1%

Electricity output, kWh bln

87.1

80.4

6.7

-7.6%

Heat energy output, Gcal mln

29,853.0

27,154.6

-2,698.4

- 9%

Coal production, mln tonnes

14.6

15.8

1.2

8.5%

Comment

Evgeny Fedorov, CEO of OAO EuroSibEnergo: “In 2011, EuroSibEnergo’s power plants ensured reliable and uninterrupted electricity and heat energy supply to consumers, meeting the demand in Eastern Siberia and Middle Volga Region.

Low flow rate and warm winter caused a decrease in energy output, but there are improvements in other segments of EuroSibEnergo: coal production is increasing and the loss of electricity in the grids is decreasing.

Implementation of strategic plans will enable the Company to remain one of the leaders in the Russian power industry and, at the same time, to enter new markets. The Company’s international development is mainly focused on the Asia-Pacific region.

Due to the implementation of investment programs aimed at expanding and upgrading the existing capacities, in early 2012, OAO EuroSibEnergo’s TPPs achieved their maximum load.

In 2011, financial results increased in spite of a decrease in operating results. Growth of free electricity market prices was the main driver. The Company’s positive financial results will enable us to invest more actively in upgrading the assets, which will improve their reliability and efficiency; this will also enable us to develop new capacities in order to meet the growing demand for electricity in Siberia.”

Press service of OAO EuroSibEnergo

June 1, 2012

June 01, 2012
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