MOSCOW, May 4 (RIA Novosti) - Russia's electricity monopoly RAO UES [RTS: EESR] said Friday its net profit fell 80% in the first three months of the current year, to 2.85 billion rubles ($110 million), year-on-year.
The company's net profit in the first quarter of 2006 stood at 5.26 billion rubles ($198 million).
It said the fall was due in part to a market-based revaluation of corporate share prices in October through December 2006, down 717.65 billion rubles ($27.6 billion).
In late April, the UES Board recommended waiving dividends for 2006 in favor of investment in the country's power grid and generation facilities.
It said the company only received "paper profits not secured by cash flows."
"The payment of dividends from net profit, unsecured by cash flows, will jeopardize an investment program and damage financials," the company said.
