"EuroSibEnergo"

The installed capacity of the stations is 19.5 GW of electric and 17,570 Gcal/h of thermal energy. The main assets are controlling stakes in Irkutskenergo, Krasnoyarsk Hydroelectric Power Station, Avtozavodskaya Thermal Power Station, sales companies MAREM+ and Volgaenergosbyt, Eurosibenergo-Engineering and Irkutsk Electric Grid Company. Owner: Oleg Deripaska (100%).

The country's largest private energy holding by power plants, Oleg Deripaska's EuroSibEnergo, increased its consolidated revenue by 21% to 87.15 billion rubles in 2010. EBITDA grew by 41% to 27.4 billion rubles, the company reported, but net profit fell by 31% to 13.14 billion rubles.

EuroSibEnergo explains the revenue growth, in particular, by an increase in energy output by 5% to 87.06 billion kWh. This was facilitated by the high water content of rivers (83% of energy production comes from hydroelectric power plants), as well as the modernization of the Krasnoyarsk and Bratsk stations. Heat production increased by 2% to 29.9 million Gcal, coal production by 21% to 14.6 million tons (81% was used by the group's stations).

The EuroSibEnergo representative declined to comment on the profit decline. But the company reported that its adjusted profit (for derivatives, unrealized exchange rate differences and one-off effects) increased 2.2 times to RUB 8.37 billion. The company received one-off profit, for example, by selling Vostsibugol to Irkutskenergo. And derivatives relate to long-term contracts of UC Rusal and the main subsidiaries of EuroSibEnergo – Irkutskenergo and Krasnoyarsk Hydroelectric Power Station, says the energy company representative, but does not disclose details.

Despite its leadership in capacity, Eurosibenergo is inferior in revenue to another private energy holding company, IES. In 2009, IES revenue amounted to 264.2 billion rubles. The company has not yet published data for 2010, but in January its former president Mikhail Slobodin said that IES revenue in 2010 grew by approximately 15%.

However, EuroSibEnergo's profit is approximately twice as high as that of IES, according to VTB Capital analyst Mikhail Rasstrigin: hydroelectric power plants are more efficient than thermal power plants owned by IES. EuroSibEnergo's EBITDA profitability in 2010 increased from 26.9 to 31.5%. This is a very good result, notes Otkritie analyst Sergei Beiden, although the same indicator for RusHydro is 54%, while for its counterparts in Brazil and China it is 65%. Slobodin said that IES's profitability in 2010 was more than 10%, but less than 20%.

In 2012, EuroSibEnergo is planning an IPO. Based on the figures published yesterday, the company could be worth around $7 billion, notes Beiden.

Didn't catch up with Vekselberg