Revenues of RAO UES branches advance

Consolidated revenues of energy companies of RAO UES grew by 12 percent inthe first half of 2002, compared to the corresponding period of 2001, andamounted to $7.15bn, the analytical department of Alfa Bank toldRosBusinessConsulting citing the Russian energy holding's report. Theadvance in revenues occurred amid the increased tariffs and decreaseddemand, the bank's analysts pointed out. In the first six months of 2002,the average tariff on electricity, in dollar terms, surged by 18 percent,compared to the corresponding period of last year, and amounted to $18.7per megawatt/hour. The average heating tariff gained 10 percent to $6.2 pergigacalorie. At the same time a demand for electrical energy decreased byone percent and for heating energy by five percent in the period fromJanuary to June 2002.Consolidated profits of regional energy companies fell by 25 percent to$609m in the first six months of 2002. According to the analyticaldepartment of Alfa Bank, this retreat was caused by the fast growth inoperating expenses of the companies in the reported period. At the sametime the advance in operating expenses was caused by an almost doubleincrease in amortization expenses due to the overvaluation of RAO UES'sfixed assets at the end of 2001. As a result, consolidated loses ofregional energy companies amounted to $3m in the first half of 2002,compared to $223m net profits in the corresponding period of last year. Netprofitability of energy companies decreased to zero, compared to 3 percentin the period from January to June 2001.The volume of accounts receivable of regional branches of RAO UES was$4.6bn in the first half of 2002, which was 4 percent lower than in thecorresponding period of last year. Accounts payable decreased by 14 percentto $3.4bn in the first six months of 2002..

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