Russia's Mosenergo profits fall tenfold in 2007

Telco

Mosenergo, the main supplier of power to Russia's capital, saw its net profits plummet in 2007 to 837 million roubles ($35.41 million) from 8.569 billion in 2006.

The tenfold drop came despite growing revenues, which rose to 78.598 billion roubles from 67.243 billion roubles in 2006.

The company gave no explanation for the profit fall.

Mosenergo came under attack last week from its former parent company, Unified Energy System (UES), Russia's Soviet-era electricity monopoly, which said the Moscow utility is not meeting its commitments to build new capacity.

A top official at gas export monopoly Gazprom, which controls Mosenergo, refuted the criticism in an interview published on Wednesday in the Vremya Novostey newspaper.

Denis Fyodorov, in charge of Gazprom's electricity sector development, told the paper that Mosenergo was installing four turbine units with a combined generating capacity of 1,770 megawatts, which are to come on line in the next few years.

“There will be no changes to the required investment program. That is our clear position,” Fyodorov said. (Reuters)

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