Russia's Federal Grid swings to H1 net loss
MOSCOW Aug 28 (Reuters) - Russia's state-controlled Federal Grid Company (FSK), which operates the country's trunk power network, swung to a net loss in the first half of 2013 as it wrote down the market value of its assets.
Shares in Russian power firms have underperformed as companies struggle to cover the cost of heavy infrastructure investments as the government caps regulated tariffs as part of efforts to rein in inflation.
Privatisation deals in the state-dominated sector have also lacked transparency, leading the MICEX power index to decline by 31 percent in the year to date, while the MICEX blue-chip index has lost 7 percent.
FSK made a net loss of 10.8 billion roubles ($325 million) in January-June this year against a restated net profit of 3.8 billion roubles in the same year-ago period, it said in a statement on Wednesday.
It said the value of its assets decreased by 23 billion roubles, mainly due a fall in the stock price of InterRao - another state electricity firm in which FSK owns around 19 percent.
Net profit, adjusted for depreciation of liquid securities held by the company and other asset impairments, came in at around 8 billion roubles, compared to a consensus forecast of 13 billion roubles, on revenue of 75.8 billion roubles.
Shares in FSK declined by 0.7 percent, bringing cumulative declines since their 2011 peak to 77 percent, according to Reuters Knowledge historical data. ($1 = 33.1844 Russian roubles) (Reporting by Maria Kiselyova; Editing by Douglas Busvine)
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