In January-June 2006, the net loss of the company, the country's leading heavy machinery manufacturer, totaled 136.7 million rubles ($5.08 million).
"The loss resulted from the full payment of penalties under a contract to modernize the Aswan hydropower plant [in Egypt] signed in 2003," the company said in a statement.
The foreign exchange difference resulting from the ruble's appreciation also affected the company's performance in the first half of the year, the statement said.
Power Machines provides engineering services, and produces, assembles, services and modernizes equipment for hydro, thermal, gas and nuclear power plants and the transportation industry. The company has clients in 87 countries.
The company's largest shareholders are Unified Energy System of Russia and Germany's Siemens, which hold 25% plus one share each, and Interros, the holding company for the world's largest nickel producer, which owns 30.4 %.
