MOSCOW, August 21 (RIA Novosti) - Unified Energy System [RTS: EESR] said Monday its IFRS net profit for 2005 had declined 42.7% year-on-year to 18.316 billion rubles ($686 million).
The Russian electricity giant's earnings from core activities during the reporting period totaled 764.655 billion rubles ($28.6 bln), up 12.6% on 2004, but expenditure gained 16% to reach 695.704 bln rubles ($26 billion).
Pre-tax profit slipped 15.6% to 53.132 bln rubles ($1.99 bln), the company said.
Due to rapid growth in expenditure compared to earnings, the group's profit from core activities in 2005 slid 11.1% year-on-year to 71.201 bln rubles ($2.67 bln). Tariff legislation hit earnings: in 2004, 2005, and 2006, electricity tariffs have been rising at a slower rate than the prices of fuel and other goods and services used by UES, the statement said.
