Data on Losses of Moscow Energy Utility Posted

Losses of the Mosenergo Moscow energy utility amounted to RUR3.393bn (about $106.80m) in the first nine months of 2002, while in the corresponding period of 2001, the company earned RUR1.686bn (about $53.07m) in profits. As the company reported to RBC, sales revenues gained 12.4 percent and amounted to RUR33.796bn (about $1.06bn) in the reported period as compared to RUR29.560bn (about $930.43m) in January-September 2001.

At the same time, prime costs of the company's products went up by 30.3 percent from RUR24.090bn (about $758.26m) to RUR34.574bn (about $1.09bn). Prime costs thus exceeded revenues by 2.4 percent. Sales losses amounted to RUR816.415m (about $25.70m). Losses before taxes reached RUR3.132bn (about $98.58m).

These losses are attributed to a late introduction of tariffs for heat and electrical energy by the Moscow energy commission. Meanwhile, the company's management is sure that the tariffs and measures for costs reduction enforced since August 1, 2002, will provide the planned amount of annual profits.

According to Mosenergo's business plan, net profits are to be RUR709m (about $22.32m) in 2002. In the fist half of 2002, the company suffered losses worth RUR780m (about $24.55m).

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