MOSCOW, December 26 (RIA Novosti) - Mosenergo [RTS: MSNG] expects to post no less than 1.5 billion rubles (about $57 million) in net profit in 2006, the Moscow-based electric and thermal power utility said Tuesday.
Mosenergo is Russia's largest territorial generating company, supplying 80% of Moscow's heating requirements and 85% of power demand in the capital and the Moscow Region. The company has 17 power plants in the region, with electric power capacity of 10,700 MWt and heat capacity of 34,200 Gkal/hour.
Mosenergo General Director Anatoly Kopsov said it would be incorrect to compare the expected net profit with the company's financial indices for 2005 when it divested some of its assets. In 2004, Mosenergo's net profits totaled $78.44 million.
Kopsov said the company will recommend its shareholders to spend 600 million rubles (about $22.7 million) from the expected profit on dividend payment and channel the remaining part into the company's development.
Russia's electric power monopoly Unified Energy System (UES) holds a 50.87% stake in Mosenergo.
Mosenergo said Thursday it had approved an additional share issue in favor of its strategic investor Gazprom. The vote followed a decision made by electricity monopoly UES in October to transfer $2.1 billion of Mosenergo's stock to the Russian energy giant.
Mosenergo earlier said it intends to use the proceeds from the additional stock issue, expected in March 2007, to repay loans extended by state-controlled retail savings bank Sberbank and government-run foreign trade bank Vneshtorgbank, and to develop Moscow's energy network.
UES will retain a controlling stake of 25% plus one share in Mosenergo after the additional share issue.
