Power Machines posts 1H 2011 net profit of $138 million

Power Machines posts 1H 2011 net profit of $138 million under IFRS
Russian hydraulic turbine manufacturer, Power Machines, has posted a 1H 2011 net profit of $138 million under IFRS.

The net result is up 41% year on year from the $97.81 million net profit posted for 1H 2010, with 1H EBITDA jumping 33.9% year on year to $197.98 million, on the back of a 22% rise in revenues to $866 million.

The company attributed the rise in net result to its focus on capital investment as well as cost optimization at the maker of hydropower, nuclear power and thermal energy generation power installations.

"Thanks to the implementation of a large-scale investment program aimed at cost-cutting and minimizing production expenses, the company's EBITDA exceeded the same figure for 2010 by 34% and amounted to $198 million."

Power Machines is 69.92% controlled by Alexei Mordashov's Highstat Ltd with Siemens recently indicating it will sell its 25% to Mordashov when it receives Federal Antimonopoly Service approval, with Power Machines and Siemens subsequently planning a gas turbine joint venture.