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.
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