Open joint-stock company territorial generating company no. 9 (стр. 8 )

2  Earnings per share are determined by dividing the difference of the net income (loss) of the reporting year and preferred shares dividends accrued in the reporting period by the number of ordinary shares net of shares owned by the Company as of the end of the period.

3  Return on equity (ROE) is calculated as ratio of the net income for the reporting period (Line 190 of Form 2 of the Financial Statements) to the value of equity capital as of the end of the period (Line 490 of Form 1 of the Financial Statements).

Net losses of the Company in 2011 amount to RUB5,682,297,000 as compared to net profit in 2010 amounted to RUB474,529,000.

Main factor of the decrease in 2011 is increased other expenses due to single noncash transactions related to creation of receivables and financial investments impairment reserves, fixed assets depreciation and impairment reserved for the total amount of RUB10,449,448,000.

Decrease of marginal income resulted from:

ü  Increased fuel prices exceeding the tariff rise rate;

ü  Decreased power output due to changes in wholesale electricity and power procedures (legal limits of power sales price);

ü  Average fuel price growth rate exceeding the average heat power tariff growth rate and average electricity price

Major changes of target indicators and conditioning factors thereof

Revenue and key indicators by types and regions of operation of OJSC TGC-9

Table 5.1.4.

Unit: ‘000 RUB

Item No.	Inicator	2009	2010	2011	Variability of 2011 actuals as compared to 2010
∆ abs.	∆ rel., %
1	Revenue	40,800,719	46,064,392	47,454,561	1,390,169	3%
1.1.	Electricity and power	16,965,299	20,547,686	22,322,643	1,774,957	9%
	Perm Territory	7,992,141	8,556,869	9,990,768	1,433,899	17%
	Sverdlovsk Region	5,754,101	8,651,868	8,688,466	36,598	0%
	Komi Republic	3,219,057	3,338,949	3,643,409	304,460	9%
1.2.	Heat power	22,158,390	23,715,704	23,154,657	-561,047	-2%
	Perm Territory	6,999,123	8,100,240	8,445,116	344,876	4%
	Sverdlovsk Region	10,226,180	10,749,319	10,237,716	-511,603	-5%
	Komi Republic	4,933,087	4,866,145	4,471,825	-394,320	-8%
1.3.	Other commercial output	1,677,030	1,801,002	1,977,261	176,259	10%
	Perm Territory	435,008	419,998	657,301	237,303	57%
	Sverdlovsk Region	811,014	858,998	840,919	-18,079	-2%
	Komi Republic	431,008	522,006	479,042	-42,964	-8%

Revenue from sales of electricity and power increased by RUB1,774,957,000 as compared to 2010, including:

·  Increase due to growth of net supply by 6% (+ RUB1,237,323,000);

·  Increase due to growth of average price by 2.5% (+ RUB537,634,000);

Revenue from sales of heat energy for 2011 decreased by RUB561,047,000 as compared to 2010, including:

·  Decrease due to decrease of net supply by 6.3% (- RUB1,495,835,000);

·  Increase due to growth of average price by 4.2% (+ RUB934,789,000);

Increase of revenue from sales of other goods and services as compared to 2010 amounted to RUB176,259,000 mainly due to increased income from provision of production equipment maintenance services and leasing of property for the total amount of RUB168,207,000.

Cost of production

Table 5.1.5.

Unit: ‘000 RUB

Item No.	Indicators	2009	2010	2011	Variability of 2011 actuals as compared to 2010
∆ abs.	∆ rel., %
1	Fuel	19,191,672	22,629,128	24,651,178	2,022,050	9%
2	Electricity purchased	1,839,229	5,123,218	6,674,862	1,551,644	30%
3	Heat purchased	1,540,067	2,087,156	1,097,767	-989,389	-47%
4	Materials and supplies	1,599,961	1,888,662	1,857,272	-31,390	-2%
5	Labour costs	2,785,390	2,733,597	3,137,412	403,815	15%
6	Social expenditures	623,541	645,741	926,225	280,484	43%
7	Depreciation	1,321,053	1,598,722	1,375,133	-223,589	-14%
8	Other expenses	5,576,248	6,682,562	6,689,331	6,769	0%
	TOTAL	34,477,161	43,388,786	46,409,180	3,020,394	7%

Cost of production of the output sold in 2011 increased by RUB3,020,394,000 or by 7% as compared to 2010 actuals mainly due to increased fuel prices and expenses for electricity purchased in the wholesale electricity and power market.