Rosseti Centre published its financial statements for 1H 2019 under RAS, EBITDA was 8,7 bln RUB

25.07.2019

According to the prepared in accordance with the Russian Accounting Standards statements for 1H 2019, Rosseti Centre’s revenue (the public name IDGC of Centre, PJSC, the ticker - MRKC) was 46,5 bln RUB, including from electric energy transmission – 45,1 bln RUB, from grid connections – 0,5 bln RUB, from resale of electric energy and power – 0,3 bln RUB and other revenue – 0,6 bln RUB. Sales profit was 3,3 bln RUB. Earnings before interest, taxes, depreciation and amortization (EBITDA2) reached 8,7 bln RUB. Net profit was 0,8 bln RUB.

Data in billion RUB, unless specified otherwise

Indicators

1H 2019

1H 2018

Change

Revenue (total), including:

46,5

46,7

-0,4%

Revenue from electric energy transmission

45,1

45,1

0,0%

Revenue from grid connection

0,5

0,8

-37,5%

Revenue from resale of electric energy and power

0,3

0,3

0,0%

Other revenue

0,6

0,5

20,0%

Cost of sales

42,3

41,0

3,2%

Sales profit1

3,3

4,7

-29,8%

Sales profit margin

7,1%

10,1%

-3,0 p.p.

EBITDA2

8,7

9,4

-7,4%

EBITDA margin

18,7%

20,1%

-1,4 p.p.

Net profit

0,8

1,6

-50,0%

Net profit margin

1,7%

3,4%

   -1,7 p.p.

Amount of electric energy transmitted, billion kWh

23,3

23,8

-2,1%

Electric energy losses*

10,54%

10,61%

-0,07 p.p.

Indicators

As at 30.06.2019

As at 31.12.2018

Change

Total assets

120,6

122,5

-1,6%

Net assets

58,3

58,5

-0,3%

Loans and credits

41,5

40,4

2,7%

Cash and cash equivalents + Financial investments (short-term)

0,1

0,8

-87,5%

Net debt3

41,4

39,6

4,5%

[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

* 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

The revenue from electricity transmission services for 1H 2019 did not change, due to such factors as the increase in the tariff for electricity transmission and the decrease in the volume of services for the transmission of electricity.

The revenue from grid connection services for 1H 2019 was 0,5 bln RUB. The decrease by 37,5% compared to the same period of 2018 is due to the early execution of unplanned grid connection agreements in 1H 2018.

The other revenue for 1H 2019 compared to the same period of 2018 increased by 20% and amounted to 0,6 bln RUB. The main reason for the growth of the other revenue is an increase in the volume of value-added services, which confirms the Company’s desire to increase non-tariff sources of income.

The main reason for the increase in cost of production by 3,2% in 1H 2019 was the increase in production costs not controlled by the Company’s management. EBITDA decreased by 0,7 bln RUB. The main factor that influenced EBITDA and the final financial result was the increase in cost of sales while lowering revenue from services.

The volume of services for the transmission of electricity amounted to 23,3 billion kWh, compared with the same period last year, there was a decrease in the volume by 2,1%. This decrease is mainly due to both partial transfer of consumer load to grids of PJSC FGC UES and its own generation, as well as to a decrease in electricity consumption by large metallurgical and petrochemical enterprises in the regions of operation. The level of electricity losses changed by (-0,07) p.p. and amounted to 10,54%. The main reason for this loss trend is the implementation of the Electricity Loss Reduction Program.

The Company’s total assets as at 30 June 2019 decreased and amounted to 120,6 bln RUB. The Company’s net assets slightly decreased by 0,3% and amounted to 58,3 bln RUB. The net debt3 increased to 41,4 bln RUB (as at 31 December 2018 – 39,6 bln RUB).

The Company’s statements for 1H 2019 can be found at the website.

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