Gazprom’s TGK-1 Power Generator Says Net Fell 41% on Warm Winter

OAO TGK-1, a power utility owned by state-run natural-gas producer OAO Gazprom, said first-quarter profit slumped 41 percent as a warm start to the year cut demand for heating and power prices declined.

Net income dropped to 2.73 billion rubles ($82 million) from 4.64 billion rubles a year earlier, TGK-1 said today in a statement on its website.

Unseasonably warm weather in the first quarter reduced heat consumption, while day-ahead market prices for electricity decreased, TGK-1 said. Fortum Oyj (FUM1V), Finland’s biggest utility, holds a 25.7 percent stake in the St. Petersburg-based generating company.

Revenue decreased 5.9 percent to 19.8 billion rubles, while earnings before interest, taxes, depreciation and amortization dropped 16 percent to 5.15 billion rubles.

To contact the reporter on this story: Anatoly Temkin in St. Petersburg at atemkin@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

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