TGC-1 releases audited consolidated Financial Statements for the 12 months period, ended December 31, 2017 prepared in accordance with International Financial Reporting Standards (IFRS).

^{* With account to Other operating income, Provision for PP&E impairment and Government subsidy.}

^{** EBITDA is calculated as Operating profit + Depreciation of PP&E + Amortization of intangible assets and investment property.}

Consolidated TGC-1 Group revenue for 12M 2017 increased by 10.8% year-on-year, up to RUB 87,395 mln. The revenue growth accounts for increased electricity and heat output resulting from the following:

• high performance of CCGT-units, including new gas turbine - CHP at station #1 at Centralnaya CHPP;
• high water factor at Nevsky and Karelsky branches;
• longer heating period.

Operating expenses for 2017FY grew by 7.3% year-on-year, up to RUB 75,409 mln. Variable costs grew by 9.8% amounting to RUB 45,238 mln, mainly, on the account of increased fuel expenses, resulting from output. Fixed costs grew by 6.7%, up to RUB 22,315 mln, influenced by higher rent expenses.

TGC-1 Group operating profit increased by 39.4% year-on-year totaling RUB 11,986 mln. EBITDA amounted to RUB 20,440 mln, up by 25.5% year-on-year.

TGC-1 Group profit for 2017FY grew by almost x1.5 year-on-year, up to RUB 7,927 mln.

Full TGC-1 Group 2017FY results under IFRS are available at the corporate website in the “Reports” section.

About

TGC-1 is the leading producer of electricity and heat in the North-West region of Russia. It operates 53 electric generating stations in four regions of Russia: St. Petersburg, Republic of Karelia, Leningrad Oblast, and Murmansk Oblast.

Installed electric capacity of the Company’s stations amounts to 6.95 GW and heating capacity of 13,65 thous. GCal/hr. Major shareholders are Gazprom Energoholding LLC (51.79 %) and Fortum Power and Heat Oy (29.45 %). Total headcount of the Company, including subsidiaries, totals circa 7 thousand.