OAO Mosenergo, the main power utility for Moscow, reported net profit of 8.6 billion rubles ($316 million), or 30 kopecks a share, for 2006 after operating expenses plunged.
Sales fell 5 percent to 67.2 billion rubles last year, Mosenergo said on its Web site today in a report prepared in accordance with International Financial Reporting Standards. Electricity sales fell 23 percent in 2006 after several large power plants were spun off after the peak season in 2005.
Mosenergo reported a net loss attributable to shareholders of 289 million rubles in 2005.
The utility's operating expenses dropped 23 percent with the release of a 10.5 billion ruble impairment provision for property, plant and equipment. The company decreased purchases of heat and power by 92 percent to 305 million rubles and paid 22 percent less in wages.
Shares of Mosenergo fell 0.44 percent today to 6.508 rubles on the Micex stock exchange in Moscow.
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