Unified Energy System's 2001 consolidated profit rose by thirty two percent as Russia's national electric power utility benefited from higher prices for electricity and heat, the Renaissance Capital group said in a note to investors.
Net income rose to $481 million from $365 million in the previous year under Russian accounting standards, Renaissance said. Net revenue rose by thirty one percent to $15.6 billion. UES declined to comment on the report.
“We attribute the improved performance of UES to strong year on year electricity and heat tariff growth of thirty five percent and thirty one percent in terms of rubles, respectively, and electricity and heat consumption growth” Renaissance said.
UES's profit growth may slow in 2002 as the government has capped price increases for electricity, gas and rail transport to fight inflation after the inflation rate jumped to eighteen and a half percent in 2001, 6.6 percentage points more than the targeted rate.