Hotline of power engineering specialists:
Based on the results of the publication of the unaudited consolidated interim condensed financial statements for 9 months of 2018 under IFRS, IDGC of Centre’s management held a conference call with representatives of the investment community to webcast a presentation dedicated to the performance results of IDGC of Centre and IDGC of Centre and Volga Region for 9 months of 2018.
IDGC of Centre at the event was represented by Alexander Inozemtsev, Deputy General Director for Economy and Finance, Lyudmila Sklyarova, Chief Accountant - Head of Financial and Tax Accounting, and Sergey Ternikov, Head of IR Division. The main topics for discussion were data of the consolidated financial statements under IFRS and production results of the companies for 9 months of 2018, as well as expected results of work of IDGC of Centre and IDGC of Centre and Volga Region following the results of 2018.
Stakeholders were provided with detailed comments on the main factors affecting the activities of the companies, and also detailed answers to their questions were given.
During the meeting, Alexander Inozemtsev noted that the companies continue to work actively to improve operational efficiency and strengthen the reliability of the power grid complex in regions of operations, which is largely evidenced by the decrease in the number of technological violations and the specific failure rate. In the reporting period, the financial result of IDGC of Centre was mainly affected by the change in tariff revenue and the increase in the cost of electricity transmission, primarily due to the growth in expenses not controlled by the management: services of regulated grid companies and the cost of electricity to compensate for technological losses, as well as changes in the structure of required reserves.
At the same time, for 9 months of 2018, IDGC of Centre reached the planned level in terms of key performance indicators, and also exceeded the target values for profit growth – by RUB 0.2 bln, and for reducing receivables – by RUB 1.9 bln and decreasing the “debt” – by RUB 3.3 bln.
In addition, IDGC of Centre, as the managing organization, actively implemented measures to increase the efficiency of operations of IDGC of Centre and Volga Region. The estimated economic effect from the transfer to IDGC of Centre of the functions on management of IDGC of Centre and Volga Region should be RUB 1,057.1 mln, which is 8.8% higher than the target figure.
It was additionally noted that the profitability of IDGC of Centre and Volga Region at the end of the reporting period was at a high level relative to other companies in the sector, which made it possible to maintain a stable financial condition of the company despite the negative effect from the growth of uncontrolled expenses. In addition, IDGC of Centre and Volga Region also managed to increase the volume of value-added services, reduce electricity losses in grids and worked to reduce specific operating expenses under control.
To view the full version of the conference call and webcast (only in Russian), as well as the question-and-answer session, please, click on the link.
The presentation of IDGC of Centre (only in Russian) is available on the link.
The presentation of IDGC of Centre and Volga Region (only in Russian) is available on the link.