Lenenergo's Net Profit to Fall by 23.5% in 2003

Lenenergo has announced that it is planning to make a net profit of USD 38.25 million in 2003. According to provisional results the company made USD 50 million in net profit in 2002. That would mean that there will be a 23.5% year-on-year decrease in net profit in 2003. Lenenergo First Deputy Director Kirill Androsov explained that this is because tariffs are not rising as fast as company costs.

In 2003 Lenenergo is expecting to make USD 803.57 million in sales of fuel and electricity. Electricity production will be cut by 25% to 13.4 billion kilowatt-hours. At the same time the company will provide 15.7 billion kilowatt-hours of electricity by purchasing 47% more electricity on the Russian electricity market.

RAO United Energy Systems of Russia owns 49% of Lenenergo shares while foreign shareholders own over 30%. The largest foreign shareholders are E.ON (Germany) with 9.3% and Fortum (Finland) with more than 6%. On January 31, 2002, Fortum signed a deal with E.ON to buy its 9.3% shareholding. This transaction will be completed by April 1, 2003, increasing Fortum's shareholding in Lenenergo from 6% to 15.7%.

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