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. Last Updated: 07/27/2016

OGK-1 to Say RAS Profits Increased 240% to $1.9Bln

Electricity producer OGK-1 posted a profit of 44.5 billion rubles ($1.9 billion) last year, a 240 percent increase on 2006, the company was to announce Wednesday.

The results, calculated to Russian accounting standards, come as Unified Energy System prepares to sell off the company later this month in the biggest auction in the electricity sector this year.

"Our profit is growing due to the electricity market liberalization, and we are building up the output due to the growing demand for the electricity," OGK-1 spokeswoman Yana Dubeykovskaya said Tuesday.

She said OGK-1 raised output by 6 percent to 50 billion kilowatt hours.

The company will release its financials calculated to international accounting standards in early May.

The Bank of Moscow forecast that OGK-1's profit would grow 13.6 percent to international accounting standards.

OGK-1 shares, meanwhile, rose 12 percent to 2.7 rubles on the MICEX on Tuesday on expectations that the company would be auctioned off for $7 billion on April 17.

The most probable buyers are Electricite de France and TransNeftServis-S, a Russian firm controlled by former UES executive Mikhail Abyzov.

OGK-1 consists of six power plants across northwest Russia with a total generating capacity of 9.5 gigawatts. The company is one of the 20 major generating firms being sold off by UES to introduce competition to the sector and raise badly needed investment.