"The faster growth in the fuel component of the electric power generation cost as compared with growth in tariffs set by the Federal Tariff Service was the main factor behind the net profit drop," OGK-6 said in a statement.
The power generator, which combines six hydropower plants with total installed capacity of over 9 GW, said its net profit plunge was also attributable to a considerable fall in electricity prices on the free market in the second quarter of 2008.
Revenue in the reporting period grew 24% to 20.362 billion rubles ($870 million), and electric power generation increased 30.15% to 18.687 billion kW/hrs, OGK-6 said.
The company's net profit calculated to Russian Accounting Standards increased 50.9% year-on-year in 2007 to 1.873 billion rubles ($78 million).
