Hotline of power engineering specialists:
According to the prepared in accordance with the Russian Accounting Standards statements for 2018, IDGC of Centre’s revenue was 93,9 bln RUB, including from electric energy transmission – 90,0 bln RUB, from grid connections – 1,9 bln RUB, from resale of electric energy – 0,5 bln RUB and other revenue – 1,5 bln RUB. Sales profit was 7,7 bln RUB. Earnings before interest, taxes, depreciation and amortization (EBITDA2) reached 16,6 bln RUB. Net profit following the results of 2018 was 1,4 bln RUB.
Data in billion RUB, unless specified otherwise
|
Indicators |
12M 2018 |
12M 2017 |
Change |
|
Revenue (total), including: |
93,9 |
91,1 |
3,1% |
|
Revenue from electric energy transmission |
90,0 |
87,6 |
2,7% |
|
Revenue from grid connection |
1,9 |
1,6 |
18,8% |
|
Revenue from resale of electric energy |
0,5 |
0,6 |
-16,7% |
|
Other revenue |
1,5 |
1,3 |
15,4% |
|
Cost of sales |
83,9 |
79,0 |
6,2% |
|
Sales profit1 |
7,7 |
9,8 |
-21,4% |
|
Sales profit margin |
8,2% |
10,8% |
-2,6 p.p. |
|
EBITDA2 |
16,6 |
19,4 |
-14,4% |
|
EBITDA margin |
17,7% |
21,3% |
-3,6 p.p. |
|
Net profit |
1,4 |
2,0 |
-30,0% |
|
Net profit margin |
1,5% |
2,2% |
-0,7 p.p. |
|
Amount of electric energy transmitted, billion kWh |
47,0 |
51,7 |
-9,1% |
|
Amount of electric energy transmitted, billion kWh (in comparable conditions*) |
47,0 |
46,9 |
0,2% |
|
Electric energy losses** |
10,60% |
9,86% |
0,74 p.p. |
|
Electric energy losses (in comparable conditions***) |
10,60% |
10,95% |
-0,35 p.p. |
|
Indicators |
As at 31.12.2018 |
As at 31.12.2017 |
Change |
|
Total assets |
122,5 |
119,7 |
2,3% |
|
Net assets |
58,5 |
57,9 |
1,0% |
|
Loans and credits |
40,4 |
41,5 |
-2,7% |
|
Cash and cash equivalents + Financial investments |
0,8 |
1,4 |
-42,9% |
|
Net debt3 |
39,6 |
40,1 |
-1,2% |
|
[1] Revenue net of cost of sales, selling and administrative expenses |
|||
|
[2] EBITDA is calculated as follows: net profit + profit tax and other similar mandatory payments + interest payable + depreciation charges |
|||
|
[3] Net debt is calculated as follows: long-term debt + short-term debt – cash and cash equivalents – short-term financial investments * Excluding the volume of the "last mile" in January - June 2017 ** Taking into account the volume of services for the transmission of electricity in the territory of execution of the functions of the electricity supplier of last resort in the service area of JSC “Transservicenergo” in the Tver region *** In terms of the composition of power grid assets in 2018 (the termination of the “last mile” contracts from 01.07.2017, as well as the integration of grids of the town of Nelidovo from 01.04.2018) |
|||
Revenues for electricity transmission services for 2018 increased by 2,7%, this growth is due to an increase of the average tariff by 10,6% and the exclusion from 01.08.2017 from the calculation of the amount of revenue of the cost of load losses of 1,9 bln RUB. The main revenue growth for electricity transmission services was noticed in the branches “Voronezhenergo” and “Smolenskenergo”.
The increase in revenues from grid connection services following the results of 2018 was 18,8% and is associated with the growth of connection to the grids of large facilities of applicants in the branches “Belgorodenergo” and “Kurskenergo”. An important result of the grid connection activity was the reduction of the average term for the “contract-notice” indicator as part of the calculation of the “Doing Business” indicator from 96 days in 2017 to 84 days in the reporting period.
The revenue from the sale of electricity in 2018 amounted to 0,5 bln RUB, which is associated with the performance of the functions of the supplier of last resort on 1 December 2016 in the Tver region in relation to the service area of JSC “Transservicenergo”. On the basis of Order of the Ministry of Energy of Russia of 29 November 2018 No. 1107, the performance of the functions of the supplier of last resort by IDGC of Center was extended from 1 December 2018 for another 12 months.
The main reason for the growth of other revenues by 15,4% relative to last year is an increase in income from unregulated activities.
The prime cost for 12 months of 2018 increased by 6,2% and amounted to 83,9 bln RUB. The main reason for the growth in this indicator is associated with an increase in expenses beyond the control, namely: a growth in expenses for compensation of electricity losses due to an increase in the weighted average price and the exclusion from the calculation of the cost of load losses from 01.08.2017; an increase in expenses for payment of services of FGC UES mainly due to the growth of the maintenance rate, as well as the exclusion from the calculation of the cost of load losses and an increase in costs of payment of services of Territorial Grid Companies mainly due to a growth of average tariffs for services.
Earnings before interest, taxes, depreciation and amortization (EBITDA) reached 16,6 bln RUB, a decrease of 14,4% over the same period last year. EBITDA margin was 17,7%, which is 3,6 p.p. lower than the result in 2017. The net profit for 2018 amounted to 1,4 bln RUB, which is 30,0% lower than the same period last year. The decrease in the financial result is due to a higher increase in the prime cost as compared with the revenue growth, as well as a negative balance on other income and expenses.
The volume of electricity transmission services was 47,0 bln kWh, compared to the same period last year, there was a decrease in the volume by 9,1%, which was the result of the termination of the “last mile” contracts from 01.07.2017. At the same time, the comparison of this indicator in comparable conditions shows an increase of 0,2%. Reduction of electricity losses (in comparable conditions for the composition of power grid assets) by 0,35 p.p. to 10,60% was achieved through the implementation of the Program to reduce electricity losses, which includes a set of organizational and technical measures. Total savings amounted to 232,6 mln kWh or 606,6 mln RUB. The greatest effect was achieved due to raids to identify non-metered power consumption.
The Company’s total assets as at 31 December 2018 were 122,5 bln RUB. The Company’s net assets increased to 58,5 bln RUB. The net debt3 decreased and amounted to 39,6 bln RUB (as of 31 December 2017 – 40,1 bln RUB).
The Company’s statements for 2018 can be found at: https://www.mrsk-1.ru/en/information/statements/rsbu/2018/