First-half net profit of $3m compares with $209m in same period last year, after investments are revalued

Russian construction and property firm LSR has reported a 99% drop in first half net profit after the value of its properties was cut by $159m.

The company reported net profit of $3m for the first half, compared with $209m for the first six months of 2007, after a non-cash loss from the revaluation of investment property.

The sum was due mainly to the rephasing of the major Electric City office project in St Petersburg, due for completion in 2011, which will now be let as a whole when construction is completed, in the wake of more difficult market conditions.

However, turnover at the firm grew 53% to $940m, up from $616m in the first half of 2007.

Chief executive Igor Levit said that the company was confident of reporting “very strong” full year results despite the tightening market. He said: “The market is changing very rapidly, but we feel quite stable at the moment.”