June 7, 2011, Ufa (Russian Federation, Republic of Bashkortostan) – OJSC “Bashkirenergo” (MICEX, RTS: BEGY) – publishes consolidated financial statements for three month ended 31 March, 2011 prepared in accordance with IFRS.

Key financial results:

·         The Company’s revenue for first three months of 2011 up 25% to 23,153 mln RUR (814 mln USD) compared to the same period of 2010.

·         Operating profit increased by 34% compared to first quarter of 2010 reaching 3,489 mln RUR (123 mln USD).

·         OIBDA was 4,406 mln RUR (155 mln USD) or 27% higher than in the same period last year.

·         Net profit was up 34% to 2,744 mln RUR (97 mln USD) compared to first quarter of 2010 results.

·         OIBDA margin stayed at the level of 19%.

·         As at March 31, 2011 the Company had no financial debt.

Key operating results:

·         OJSC “Bashkirenergo” total power generation in the first three months of 2011 was 6,377 mln kWh, gaining 1% from the first quarter of 2010.

·         The capacity factor of OJSC “Bashkirenergo” power stations reached 70% (an increase of 4 b.p. compared to first quarter of 2010).

·         Heat output of the Company in the first three months was down 2% to 9,749 thousand Gcal compared to first quarter of 2010.

·         The specific consumption of equivalent fuel in the first three months of 2011 fell 1.6 g/kWh for electricity generation to 309.6 g/kWh, and 1 kg/Gcal for heat output to 141.7 kg/Gcal.

·         Volumes of electricity transmission through distribution grid was up 2% to 4,810 mln kWh with volumes of electricity transmitted through transmission grid down 1% to 5,797 mln kWh.

·         The transmitted electricity losses in the first quarter of 2011 was up from 1,45% to 1,51% in the transmission grid, with distribution grid losses increasing from 11,7% to 12,1%.

·          Power supply to consumers in the first quarter of 2011 is up 14% to 5,892 kWh compared to the same period last year.

Andrey Makarov, the CEO of OJSC “Bashkirenergo” commenting the financial results of the first three months of 2011 has stated: “The financial and operational results of OJSC “Bashkirenergo” for the first three months of 2011 were beyond the Company’s management expectations. The rise in electricity and capacity prices at the Wholesale electricity and capacity market with the increase of power prices for final consumers drove the Company to strong financial results in the first quarter. The constant process of searching for ways to reduce fixed and variable costs paid back by the increase in net margin from 11% to 12% in the first quarter of 2011”.