TGC-14 Reports a 32.2% Decline in Net Profit in H1 2025 Amid Rising Costs
Financial Highlights
Public Joint Stock Company "TGC-14" has released its financial results under RAS for the first half of 2025. The company's net profit decreased by 32.2% compared to the same period last year, amounting to 420.3 million rubles. This decline is attributed to rising operational expenses, changes in cost structure, and fluctuations in fuel prices.
Revenue Dynamics
During the reporting period, the company experienced modest revenue growth due to increased thermal energy supply volumes in its operational regions. However, the positive impact of seasonal demand was partially offset by the rising costs of fuel and expenditures related to the repair campaign.
Cost Structure
- Increase in coal and gas prices used for thermal energy generation
- Higher costs for maintenance and modernization of equipment
- Rising tariffs for fuel transportation
Collectively, these factors have put pressure on the company’s profitability, leading to a decrease in net margin.
Operational Metrics
By the end of H1 2025, TGC-14 maintained stable electricity generation volumes; however, average selling prices did not compensate for the increased expenses. Tariff increases in certain regions are expected only in the second half of the year, which may partially support financial performance.
Regional Factors
The company primarily operates in the Trans-Baikal region and the Republic of Buryatia, where seasonal demand for thermal energy remains high during the colder months. However, during the reporting period, a warm spring and reduced consumption from the industrial sector have restrained revenue growth.
Debt Load
The company's debt position remains within acceptable levels; however, rising interest expenses due to changes in loan rates have negatively impacted net profit.
Investment Programs
In 2025, TGC-14 continues to implement investment projects aimed at modernizing equipment, improving energy efficiency, and reducing losses in the networks. Nevertheless, the investment volume in the first half of the year was limited due to the need to optimize cash flows.
Outlook for H2
- Expected increase in thermal energy tariffs
- Potential demand growth due to the beginning of the heating season
- Continued modernization projects may enhance operational efficiency
Nevertheless, risks associated with fuel price volatility and macroeconomic instability persist.
Conclusion
The decrease in net profit for TGC-14 in H1 2025 reflects a challenging market environment, rising costs, and limited capacity to raise tariffs in the first half of the year. For investors, key factors in the upcoming months will be the results of the heating season, fuel price dynamics, and the pace of investment project implementation.
