Latvijas Gaze

Quarterly Report • May 27, 2010

"Latvijas Gāze" Joint Stock Company

Unaudited Financial Report of 3 months of 2010

Prepared according to the Requirements of International Financial Reporting Standards

Riga, 2010

Contents

Information on the Company 3
Report on activity of the "Latvijas Gāze" JSC in the 3 months of the year 2010 5
Shares and shareholders 8
Balance sheet11
Consolidated income statement – by function of expense12
Consolidated statement of recognized income and expense 12
Cash flow statement 13
Changes in equity capital14
Notes to the financial statements15

Information on the Company

Name of the Company	Latvijas Gāze JSC
Legal status of the Company	Joint Stock Company
Registration number, venue and date	000300064 Riga, March 25, 1991
	Re-registered in the Commercial Register on December 20, 2004 with the unified registration number 40003000642
Address	Vagonu Street 20 Riga, LV – 1009 Latvia
Major shareholders	E.ON Ruhrgas International GmbH (47.2 %) Gazprom OJSC (34.0 %) ITERA Latvija LLC (16.0 %)
Reporting period	January 1 – March 31, 2010

Board members – names, surnames, posts, recent professional experience and education

(Dr.sc.ing.).

Adrians Dāvis – Chairman of the Board Since 1997 – Chairman of the Board of the JSC "Latvijas Gāze"; involved in gas industry since 1965

1997 Physical Energy Institute of Latvian Science Academy, academic degree of doctor in engineering

Jörg Tumat – Board member, Vice-Chairman of the Board (since 2006)

2001 – 2006 E.ON Ruhrgas AG / Ruhrgas AG. Eastern Gas Purchase Department, Head of Division; OJSC "Gazprom" share and eastern gas purchase contracts;

Alexander Miheyev (Александр Михеев) – Board member, Vice-Chairman of the Board

Since 2003 First Deputy Head of the Marketing, Gas and Liquid Hydrocarbon Processing Department of the OJSC Gazprom; involved in gas industry since 1968

1968 Graduated from the Moscow Oil and Gas Industry Institute named after I. M. Gubkin and obtained the qualifications of engineer in design and operation of oil and gas pipelines, gas storage facilities and oil tanks

Anda Ulpe – Board member

Since 1997 Board member of the JSC "Latvijas Gāze"; involved in gas industry since 1984

2002 the University of Latvia, Master Degree of Social Sciences in Economics

Gints Freibergs – Board member

involved in gas industry since 1998.

Since 1997 Board member of the JSC "Latvijas Gāze"; involved in gas industry since 1984

2001 – 2004 the University of Hagena, Diploma in Business Administration (Dipl.-Betriebswirt)

1984 Polytechnical Institute of Riga, engineer in industrial heat power

Council members (since July 3, 2009) – names, surnames, posts, recent professional experience and education

Kirill SeĜeznev (Кирилл Селезнев) – Chairman of the Council, Represents the interest of OJSC Gazprom

Since March 20, 2003 Head of the Gas and Liquid Hydrocarbon Sales and Processing Department, OJSC Gazprom; Member of Management Committee, OJSC Gazprom

1997 Graduated from Baltic State Technical University of St. Petersburg named after D. F. Ustinov – Engineering of Impulse Devices and Automated Rotation Lines 2002 Graduated from St. Petersburg State University – Credit Theory and Finance Management

Achim Saul – Vice-Chairman of the Council, Represents the interest of E.ON Ruhrgas International GmbH

2005 – 2008 E.ON Gaz România Group, Chairman of the Board, Targumures, Romania Since March 2008 E.ON Ruhrgas International AG, Member of the Board of Directors, Essen – responsible for foreign branches, legal issues, human resources and organization

1987 Doctorate (Dr.-Ing.), University of Ruhr, Bochum

Mario Nullmeier – Council member, Represents the interest of E.ON Ruhrgas International GmbH

Since 2005 Head of the Baltic Office of E.ON Ruhrgas International AG in Tallinn, Estonia

2000 Master Degree in Global Business Administration

Heinz Watzka – Council member, Represents the interest of E.ON Ruhrgas International GmbH

Since 2002 Senior Vice-President of E.ON Ruhrgas AG, responsible for maintenance of the southern gas pipeline system of E.ON Ruhrgas

1986 Studied machine manufacturing at the Technical University of Vienna (Austria) – specialized in pump station welding and hydraulic design for the oil industry

Alexander Krasnenkov (Александр Красненков) – Council member, Represents the interest of OJSC Gazprom

Since 2006 General Director of the LLC "Baltic Liquefied Gas"

Graduated from the International Institute of Finance and Economics, speciality of international economics and international relations

Igor Nazarov (Игорь Назаров) – Council member, Represents the interest of LLC ITERA Latvija

Since 2007 Director of the Export Department, NGK ITERA (Moscow, Russia)

1982 Moscow State University of Foreign Affairs (MGIMO) (within the framework of the Ministtry of Foreign Affairs), Diploma of Commercial Department, which equals to a Master of Economics: an economist with knowledge of foreign languages (Italian and English)

Juris Savickis – Vice-Chairman of the Council, Represents the interest of LLC ITERA Latvija

Since 1996 LLC "ITERA Latvija", president

1970 – 1972 Polytechnical Institute of Riga, Graduate school 1983 - 1984 University of Qualification Raising for Executives, Faculty of International Relations

Joachim Hockertz – Council member, Represents the interest of E.ON Ruhrgas International GmbH

2000 – 2002 Head of the Baltic Office of Ruhrgas AG Since 2002 E.ON Ruhrgas International AG

1989 – 1992 Max Plank Institute in Mulheim-am-Ruhr, PhD

Uwe Fip – Council member, Represents the interest of E.ON Ruhrgas International GmbH

Since 2002 E.ON Ruhrgas AG – Senior Vice-President, Head of Eastern Department of Gas Supplies

Master in Oil Engineering, Degree in Business Management (Diploma – Merchant)

Yelena Karpel (Елена Карпель) – Council member, Represents the interest of OJSC Gazprom

Since 2004 Member of the Board of Directors of Gazprom following the resolution of the shareholders' meeting

1974 Higher courses of economics with the USSR State Planning Committee

Vlada Rusakova (Влада Русакова) – Council member, Represents the interest of OJSC Gazprom

Since 2003 Head of the Strategic Development Department, OJSC Gazprom

Since 2003 Board member of the OJSC Gazprom

1977 Graduated from the Moscow Oil and Gas Industry Institute named after I. M. Gubkin and obtained the qualifications of engineer in design, planning and operation of oil and gas pipelines, gas storage facilities and oil tanks Kirill SelezĦev (Кирилл Селезнев) – Chairman of the Council Juris Savickis – Vice-Chairman of the Council Achim Saul – Vice-Chairman of the Council Eike Benke – Council member Uwe Fip – Council member Marcus Söhrich – Council member Heinz Watzka – Council member Yelena Karpel (Елена Карпель) – Council member Alexander Krasnenkov (Александр Красненков) – Council member Vlada Rusakova (Влада Русакова) – Council member Igor Nazarov (Игорь Назаров) – Council member

Names, surnames and posts of Council members (before July 3, 2009)

Report on activity of the "Latvijas Gāze" JSC in the 3 months of the year 2010

The Joint Stock Company "Latvijas Gāze" (hereinafter – LG) is the only natural gas transmission, storage, distribution and sale operator in Latvia. The company supplies natural gas to 442 100 customers in Latvia, and in winter – also to Estonia, the Northwestern part of Russia and Lithuania from the Inčukalns Underground Gas Storage Facility.

The goal of LG is to strengthen its leading position in the fuel market of Latvia by enhancing the accessibility of natural gas, facilitating the diversity of its consumption and ensuring for consumers in Latvia one the most stable supplies in Europe.

The vision of LG is to make Latvia one of the largest natural gas storage hubs in Europe by using the unique geological structures of our country.

The mission of LG is to contribute to the economy of the Baltic region by ensuring the security of energy supplies, the development of the industry and the competitiveness of prices.

The underlying principles of financial activity of LG are as follows:

• investments in modernization of the infrastructure related to natural gas supply stability and security;
• investments in the development of infrastructure and the quality of service;
• competitive price of natural gas and services;
• profit that enables the company to make investments and pay dividends in compliance with the international natural gas industry practice. Such amount of profit is regulated by the Public Utility Commission of the Republic of Latvia by setting the level of capital return (currently the capital return is set to 8.0 % of the regulated asset basis).

1. Activity of the Company in the reporting year

In 3 months of 2010 LG sold to consumers 757.1 million m³of gas, which is by 28.3% or 167.1 million m³ more than it had been budgeted and by 27.6% more than in the respective period of 2009.

The increase of natural gas consumption among both industrial and residential customers during the 3 months of 2010 stems from the protractedly low air temperature.

The gas injection season at the Inčukalns Underground Gas Storage Facility (hereinafter - Inčukalns UGS) began in April 12, 2010. Upon the commencement of natural gas injection, the reserves of active gas at the Inčukalns UGS were 51.4 million nm³ .

It was budgeted that 1 600 million nm³ of natural gas would be injected into the Inčukalns UGS in 2010, reaching 2 348.4 million nm³ of active gas at the end of the injection season. However, considering that due to the cold weather the withdrawn volume was higher than planned, more injection is likely to be needed as well. The exact volume to be injected is being clarified.

In the 1st quarter of 2010, consumers were sold natural gas and provided services for LVL 126.5 million, which is by 18.4 % less than in the respective period of 2009, still by 29.3% more than planned in the budget of 2010. The fall of income towards the respective period of 2009 stems from the industrial users and residential customers being applied the discriminative natural gas sale end tariffs in the 1st quarter of 2010. These tariffs corresponded to the natural gas sale price, which was by 82.6 % lower than in Q1 of 2009. The income, compared to 2009, decreased both from industrial and household customers. The income from transmission and storage, for its part, increased, as other countries used the services of the Inčukalns UGS more intensively due to the cold weather, as well as there were higher tariffs of natural gas storage in the 1st quarter of 2010.

LG completed 3 months of 2010 with a profit of LVL 6.7 million, which is by 17.5 % higher than in the respective period of 2009 when the profit amounted to LVL 5.7 million.

Within the framework of the capital investment programme, LVL 1.4 million of investment funds were taken up over 3 months of 2010. The funds were mostly spent on the construction of new gas pipelines and the renovation of existing ones, as well the reconstruction of engineering buildings and constructions.

The key indices of the Company:

	2010 Q1	2009 Q1	2008 Q1	2010 Q1	2009 Q1	2008 Q1
	LVL'000	LVL'000	LVL'000	EUR'000	EUR'000	EUR'000
Net turnover	126 481	154 975	106 355	179 966	220 510	151 330
Profit before income tax, interest payments, depreciation and amortization	15 897	13 096	10 650	22 619	18 634	15 154
Profit before income tax, interest payments, depreciation and amortization to net
turnover	12.57%	8.45%	10.01%	12.57%	8.45%	10.01%
Profit of operational activity	10 645	8 025	5 921	15 146	11 419	8 425
Profitability of operational
activity (%)	8.42%	5.18%	5.57%	8.42%	5.18%	5.57%
Profit of reporting period	6 715	5 700	4 870	9 555	8 110	6 929
Commercial profitability (%)	5.31%	3.68%	4.58%	5.31%	3.68%	4.58%
Total assets	436 947	438 706	440 450	621 720	624 222	626 704
Equity	335 764	330 672	330 410	477 749	470 504	470 131
Return on assets (ROA)	1.49%	1.23%	1.07%	1.49%	1.23%	1.07%
Return on equity (ROE)	2.02%	1.74%	1.48%	2.02%	1.74%	1.48%
Number of shares	39 900	39 900	39 900	39 900	39 900	39 900
	LVL	LVL	LVL	EUR	EUR	EUR
Profit per share	0.168	0.143	0.122	0.239	0.203	0.174
Share price over earnings per share (P/E)	30.01	24.43	58.99	30.01	24.43	58.99
Share book value (BV)	8.42	8.29	8.28	11.97	11.79	11.78
Price to book value (P/BV)	0.60	0.42	0.87	0.60	0.42	0.87
Share price at the end of period	5.05	3.49	7.20	7.19	4.97	10.24

2. Research and development

.

In order to ensure uninterrupted natural gas supply to consumers and safe operation of the natural gas supply system, LG has developed the "Action plan for the safety improvement of the Joint Stock Company "Latvijas Gāze" gas supply system 2010-2015". It was prepared based on the adjudgments of the Russian companies "Gazobezopasnostj" and "Lentransgaz", the institutes "VNIIGAZ" and "Giprospecgaz", as well as the German companies "Pipeline Engineering GmbH", "Untergrundspeicher und Geotechnologie – Systeme GmbH", "E.ON Engineering GmbH", "E.ON Ruhrgas International AG" and other partners regarding the technical condition of equipment and modernization possibilities.

The action plan envisages investment in safety improvement in the total amount of LVL 50.6 million (EUR 72 million). This basically includes projects that are required for the improvement of system operation safety, the gasification of new units and the improvement of stability of gas supply throughout the region.

Shares and shareholders

1) The composition of LG shareholders¹ as of December 31, 2009 and previous 2 periods:

Share	31.12.2009.	31.12.2008.	31.12.2007.
"E.ON Ruhrgas International" GmbH	47.2%	47.2%	47.2%
"Gazprom" OJSC	34.0%	34.0%	34.0%
"Itera Latvija" LLC	16.0%	16.0%	16.0%
Others	2.8%	2.8%	2.8%
TOTAL	100.0 %	100.0 %	100.0 %

2) The composition of shareholders of the "Latvijas Gāze" JSC as to the industries they represent as of December 31, 2009:

3) The number of shares held by the members of the Board and the Council of the "Latvijas Gāze" JSC as of December 31, 2009:

Board members		Number of shares
Chairman of the Board	Adrians Dāvis	417
Vice-Chairman of the Board	Joerg Tumat	900
Vice-Chairman of the Board	Alexander Miheyev	417
Board member	Anda Ulpe	729
Board member	Gints Freibergs	416
Council members		Number of shares
Chairman of the Council	Kirill Seleznev	0
Vice-Chairman of the Council	Achim Saul	0
Vice-Chairman of the Council	Juris Savickis	0
Council member	Joachim Hockertz	0
Council member	Uwe Fip	0
Council member	Mario Nullmeier	0
Council member	Heinz Watzka	0
Council member	Yelena Karpel	0
Council member	Alexander Krasnenkov	0
Council member	Vlada Rusakova	0
Council member	Igor Nazarov	0

1 Shareholders owning at least 5 % of capital

4) The price of shares at NASDAQ OMX Riga in 3 months of 2010 and in the respective period of previous years.

As from February 15, 1999, the shares of LG are quoted at the NASDAQ OMX Riga exchange, and their trading code as from August 1, 2004 is GZE1R.

ISIN	LV0000100899
Exchange code	GZE1R
List	Second list
Nominal value	1.00 LVL
Total number of securities	39 900 000
Number of securities in public trading	25 328 520
Guaranteers of liquidity	None

	2006 Q1	2007 Q1	2008 Q1	2009 Q1	2010 Q1
Share price (LVL):
First	9.95	10.35	7.25	4.55	4.57
Highest	11.13	11.25	8.20	5.23	5.33
Lowest	9.27	10.30	6.40	3.45	4.57
Average	10.18	10.57	7.54	3.99	5.01
Last	10.30	10.30	7.20	3.49	5.05
Change	3.52%	-0.48%	-0.69%	-23.30%	10.50%
Number of transactions	327	210	515	253	184
Number of shares traded	53 960	115 109	11 880	15 040	11 150
Turnover (million LVL)	0.549	1.216	0.090	0.059	0.056
Capitalization (million LVL)	410.970	410.970	287.280	139.251	201.495

Source: NASDAQ OMX Riga

The capitalization value of LG in 3 months of 2010 reached 201.49 million lats - by 62.24 million lats more than in 3 months of the previous reporting period. By share market capitalization LG took the 1st place among companies quoted at NASDAQ OMX RIGA and the 6th place among companies quoted at NASDAQ OMX Baltic.

5) The dynamics of LG share price and indexes.

The shares of LG are included in	B10GI, B10PI, OMXBBCAPGI, OMXBBCAPPI,
the following index baskets	OMXBBGI, OMXBBPI, OMXBGI, OMXBPI,
	OMXRGI

OMX Baltic

An index of all shares, Baltic-wide. Its basket consists of the shares of the Official and Second list of the Baltic exchanges. The index reflects the current situation and changes in the Baltic market overall.

OMX Riga

An index of all shares, local. Its basket consists of the shares of the Official and Second list of the NASDAQ OMX Riga exchange. The index reflects the current situation and changes in the NASDAQ OMX Riga exchange.

OMX Baltic Energy

A sector index, Baltic-wide, based on the Global Industry Classification Standard (GICS) developed by Morgan Stanley Capital International Inc. (MSCI) together with

Standard & Poor's. The international classification standard GICS was created in order to meet the investors' requirement of more precise, comprehensive and standardized classification of companies. The sector index shows the trends of sector and enables a comparison of similar companies within a sector. The index includes the shares of the Official and Second list of the OMX Baltic market; the indexes are calculated for each GICS sector individually.

Source: NASDAQ OMX Riga

Indexes/Shares	01.01.2007.	31.03.2010.	Changes
OMX Baltic GI	749.13	415.86	-44.49%
OMX Baltic Energy GI	602.43	367.91	-38.93%
LG share price	10.32	5.05	-51.07%
Turnover of LG shares	455.40	328.35	-27.90%

Balance sheet

	Note	31.03.2010. LVL'000	31.03.2009. LVL'000	31.03.2010. EUR'000	31.03.2009. EUR'000
ASSETS
Non-current assets
Property, plant and equipment		311 453	316 967	443 158	451 003
Intangible assets		2 234	2 140	3 179	3 045
Trade receivables		4	11	6	16
Total non-current assets		313 691	319 118	446 343	454 064
Current assets
Inventories	1	6 558	21 398	9 331	30 446
Trade receivables		26 701	47 287	37 992	67 283
Current income tax receivable		2 683	5 786	3 818	8 234
Other current assets		936	1 091	1 332	1 552
Cash and cash equivalents		86 378	44 026	122 905	62 643
Total current assets		123 256	119 588	175 378	170 158
TOTAL ASSETS		436 947	438 706	621 721	624 222
EQUITY AND LIABILITIES
Equity
Share capital		39 900	39 900	56 773	56 773
Share premium		14 320	14 320	20 376	20 376
Revaluation reserve	2	186 350	187 077	265 152	266 186
Other reserves		69 540	66 544	98 947	94 684
Retained earnings	3	25 654	22 831	36 502	32 485
Total equity		335 764	330 672	477 750	470 504
Liabilities
Non-current liabilities
Deferred income tax liabilities Accruals for post employment		29 700	29 915	42 259	42 565
benefits and other employee benefits		4 499	4 673	6 402	6 649
Deferred income		13 782	13 551	19 610	19 281
Total non-current liabilities		47 981	48 139	68 271	68 495
Current liabilities
Trade payables		11 134	20 944	15 842	29 801
Corporate income tax payable		4 393	2 619	6 251	3 727
Deferred income		827	3 327	1 177	4 733
Other current liabilities		36 848	33 005	52 430	46 962
Total current liabilities		53 202	59 895	75 700	85 223
Total liabilities		101 183	108 034	143 971	153 718
TOTAL EQUITY AND LIABILITIES		436 947	438 706	621 721	624 222

Consolidated income statement – by function of expense

		31.03.2010.	31.03.2009.	31.03.2010.	31.03.2009.
	Note	LVL'000	LVL'000	EUR'000	EUR'000
Revenue	4	126 481	154 975	179 966	220 510
Cost of sales	5	(108 917)	(136 420)	(154 975)	(194 109)
Gross profit		17 564	18 555	24 991	26 401
Administrative expenses	6	(859)	(4 697)	(1 223)	(6 683)
Other income	7	676	784	964	1 115
Other expenses	8	(6 736)	(6 617)	(9 585)	(9 415)
Operating profit		10 645	8 025	15 147	11 418
Finance income	9	449	275	639	391
Finance expenses	9		(2)		(3)
Finance income, net	9	449	273	639	388
Profit before income tax		11 094	8 298	15 786	11 806
Income tax expense		(4 393)	(2 619)	(6 251)	(3 727)
Profit for the period		6 701	5 679	9 535	8 079
Earnings per share (EPS)		0.168	0.142	0.239	0.202

Consolidated statement of recognized income and expense

Items net of tax Disposal of revalued property, plant and equipment	2	14	21	20	31
Net income recognised directly in equity		14	21	20	31
Profit for the period		6 701	5 679	9 535	8 079
Total recognised income for the period		6 715	5 700	9 555	8 110

Cash flow statement

	31.03.2010. LVL'000	31.03.2009. LVL'000	31.03.2010. EUR'000	31.03.2009. EUR'000
Cash flow from operating activities
Cash generated from operations	52 825	42 918	75 164	61 066
Interest received	483	327	687	465
Income tax paid	(1 343)	(1 945)	(1 911)	(2 767)
Net cash generated from operating
activities	51 965	41 300	73 940	58 764
Cash flow from investing activities
Purchase of property, plant and equipment	(1 393)	(1 895)	(1 982)	(2 696)
Proceeds from sale of property, plant and
equipment	3	4	4	6
Purchase of intangible assets	(7)	(39)	(10)	(56)
Net cash used in investing activities	(1 397)	(1 930)	(1 988)	(2 746)
Cash flow from financing activities
Repayment of borrowings	-	(1 788)	-	(2 544)
Interest paid	-	(2)	-	(3)
Net cash (used in) / generated from financing activities	-	(1 790)	-	(2 547)
Net (decrease) / increase in cash and cash equivalents	50 568	37 580	71 952	53 471
Cash and cash equivalents at the beginning of the year	35 810	6 446	50 953	9 172
Cash and cash equivalents at the end of the year	86 378	44 026	122 905	62 643

Changes in equity capital

	Share capital	Share premium	Revaluation reserve	Other reserves	Retained earnings	Total
	LVL'000	LVL'000	LVL'000	LVL'000	LVL'000	LVL'000
31 December, 2008	39 900	14 320	187 060	66 544	17 131	324 955
Income in year 2009,
total	-	-	17	-	5 700	5 717
31 March, 2009	39 900	14 320	187 077	66 544	22 831	330 672
31 December, 2009	39 900	14 320	186 360	69 540	18 940	329 060
Income in year 2010,
total	-	-	(10)	-	6 715	6 705
Rounding	-	-	-	-	(1)	(1)
31 March, 2010	39 900	14 320	186 350	69 540	25 654	335 764

	Share capital	Share premium	Revaluation reserve	Other reserves	Retained earnings	Total
	EUR'000	EUR'000	EUR'000	EUR'000	EUR'000	EUR'000
31 December, 2008 Income in year 2009,	56 773	20 376	266 163	94 684	24 375	462 371
total	-	-	23	-	8 110	8 133
31 March, 2009	56 773	20 376	266 186	94 684	32 485	470 504
31 December, 2009 Income in year 2010,	56 773	20 376	265 167	98 947	26 948	468 211
total	-	-	(14)	-	9 555	9 541
Rounding	-	-	(1)	-	(1)	(2)
31 March, 2010	56 773	20 376	265 152	98 947	36 502	477 750

Notes to the financial statements

		31.03.2010. LVL'000	31.03.2009. LVL'000	31.03.2010. EUR'000	31.03.2009. EUR'000
1	INVENTORIES
	Materials and spare parts
	(at net realisable value) Gas and fuel (at cost)	2 634	2 818	3 748	4 010
		3 924 6 558	18 580 21 398	5 583 9 331	26 436 30 446
2	REVALUATION RESERVE
	At the beginning of the period	186 360	187 060	265 167	266 163
	Revaluation of property, plant and
	equipment	4	38	6	54
	Disposal of revalued property,
	plant and equipment	(14)	(21)	(20)	(31)
	Rounding At the end of the period	- 186 350	- 187 077	(1) 265 152	- 266 186
3	RETAINED EARNINGS
	At the beginning of the period	18 939	17 131	26 948	24 375
	Disposal of revalued property,
	plant and equipment	14	21	20	31
	Profit for the period	6 701	5 679	9 535	8 079
	Rounding	-	-	(1)	-
	At the end of the period	25 654	22 831	36 502	32 485
4	REVENUE
	Sales per customers' groups are as follows:
	Income from natural gas sales to
	industrial customers	105 113	132 952	149 562	189 174
	Income from natural gas sales to
	residential customers	16 095	20 572	22 901	29 271
	Income from transmission and
	storage of natural gas Income from natural gas sales to	5 143	1 299	7 318	1 848
	vehicles	9	14	13	20
	Other services	121	138	172	197
		126 481	154 975	179 966	220 510
5	COST OF SALES
	Purchase of natural gas	98 939	125 811	140 778	179 013
	Salaries	2 482	2 969	3 532	4 225
	Social insurance contributions	591	693	841	986
	Life, health and pension insurance	201	222	286	316
	Materials and spare parts	649	897	923	1 276
	Depreciation and amortisation	5 090	4 897	7 242	6 968
	Other	965	931	1 373	1 325
		108 917	136 420	154 975	194 109

6 ADMINISTRATIVE EXPENSES

	Salaries	772	756	1 098	1 076
	Social insurance contributions	180	181	256	258
	Life, health and pension insurance	35	38	50	54
	Maintenance and utilities	225	267	320	380
	Real estate tax	43	40	61	57
	Depreciation and amortisation	136	150	194	213
	Bank charges	19	86	27	122
	Provisions for impairment of bad
	and doubtful debts, net	(709)	(23)	(1 009)	(33)
	Other expenses	158	3 202	226	4 556
		859	4 697	1 223	6 683
7	OTHER INCOME
	Penalties from customers	398	497	566	707
	Profit on sale of fixed assets	138	131	196	186
	Provisions for slow moving and
	obsolete inventories impairment	6	4	9	6
	Other income	134	152	193	216
		676	784	964	1 115
8	OTHER EXPENSES
	Materials	9	3	13	4
	Salaries	32	39	46	55
	Social insurance contributions	5	5	7	7
	Depreciation and amortisation	26	25	37	36
	Sponsorship	44	4	63	6
	Loss from sale of fixed assets	1	18	1	26
	Loss from increase in exchange
	rates, net	577	344	821	489
	Other expense	6 042	6 179	8 597	8 792
		6 736	6 617	9 585	9 415
	EXPENSES BY NATURE
	Purchase of natural gas	98 939	125 811	140 778	179 013
	Depreciation and amortisation	5 252	5 072	7 473	7 217
	Employee benefit expense	4 298	4 903	6 116	6 977
	Material and spare parts	658	900	936	1 280
	Net provisions for impaired
	receivables	(709)	(23)	(1 009)	(33)
	Other expenses	8 073	11 071	11 489	15 753
		116 511	147 734	165 783	210 207

9 FINANCE INCOME, NET

Finance income, net	449	273	639	388
Finance expenses - Interest expenses	-	2	-	3
Finance income - Interest income	449	275	639	391