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Based on the results of the publication of the unaudited consolidated interim condensed financial statements for 6 months of 2020 under IFRS, the management of IDGC of Centre (hereinafter referred to as Rosseti Centre) – managing organization of IDGC of Centre and Volga Region (hereinafter referred to as Rosseti Centre and Volga Region) held a conference call to webcast a presentation dedicated to the performance results of Rosseti Centre and Rosseti Centre and Volga Region for 6 months of 2020. Rosseti Centre at the event was represented by Deputy General Director for Economy and Finance Artem Aleshin and Head of IR Division Sergey Ternikov. The key issues, in addition to financial results, were the problem of the passage of the period of restrictive measures by the Companies, the changes in accounts receivable, the consolidation of power grid assets and the current forecast for the main performance indicators at the end of 2020.
Against the backdrop of a difficult macroeconomic situation triggered by the COVID-19 pandemic, the Companies timely implemented a number of measures aimed at ensuring the reliability of power supply, protecting personnel and maintaining financial stability. In particular, operating expenses were optimized and the Investment Program was revised, the debt structure was improved, and the work on monitoring payment discipline was strengthened. Significant assistance in solving non-standard tasks was provided by the ongoing Digital Transformation Program of Rosseti Centre and Rosseti Centre and Volga Region. In a short time, all customer service centres were switched online, which ensured the maximum availability of the Company’s services for consumers and supported the revenue indicators from value-added services.
Despite the decrease in the volume of electricity transmission services, which were caused both by the climatic factor in the first quarter and by the contraction of business activity in the second quarter due to restrictive measures, the Companies managed to maintain a positive trend in reducing electricity losses. Continuous work is underway to improve the collection rate for electricity transmission services and problem receivables, which is reflected in the financial results. Both Companies reported growth in the EBITDA and profit for the period compared to 6 months of the previous year.
During the presentation of the results, an updated forecast of the Companies for 2020 was also presented, which does not imply any new restrictive measures in the economy in the second half of the year and is based on a conservative assessment of the changes of the main indicators. At the same time, the Companies expect stabilization of electricity demand and improvement of financial results. Also, during the discussion, the topic of consolidation of power grid assets was touched upon. The Companies continue to increase the share of their presence in the regions of operation, which contributes to an increase in the efficiency of the electric grid complex of the regions and improves the parameters for future periods of tariff regulation.
The presentation of Rosseti Centre (only in Russian) is available on the link.
The presentation of Rosseti Centre and Volga Region (only in Russian) is available on the link.