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The Company’ s revenue over the same period last year grew by 12.7% to 68.1 billion rubles, including from electricity transmission — 65.7 billion rubles, from technological connection — about 1.7 billion rubles and other revenue — 780 million rubles. From the technological connection the revenue decreased by 22.7% due to the transition of all branches in 2011 to RAB-regulation.
The amount of electricity transmission[1],following the results of 2011, increased by 1.4% to 54.09 billion kWh, which is due to the growth of energy consumption in a number of branches of IDGC of Centre: in Belgorodenergo the growth of transmission was 4.4%, Lipetskenergo — 2.7% Kurskenergo — 2.6%, Orelenergo — 2.1%. This increase is associated with an increase in electricity consumption by large metallurgic companies.
Gross profit of IDGC of Centre for the period reached 12.6 billion rubles, which is 32.8% higher over the same period last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to 13.8 billion rubles, this is 25.5% higher over 2010. Net profit increased by 10.6% and the indicator reached 5.2 billion rubles.
The growth of the indicators is due to priority rates of the revenue growth over the cost growth, the growth of electricity consumption in the regions where the Company operates, the obtained effect of the costs management program in terms of reducing electric energy losses, the optimization of the personnel costs, reduced overheads and lower costs for the acquisition of production services.
Data in billion RUR, unless specified otherwise
| Indicator | Actual 2010 | Actual 2011 | Change, % |
|---|---|---|---|
|
Revenue (total) Including:: |
60,4 |
68,1 |
12,7% |
|
Revenue from electric power transmission |
57,6 |
65,7 |
14,1% |
|
Revenue from technological connection |
2,2 |
1,7 |
-22,7% |
|
Other revenue |
0,7 |
0,8 |
14,2% |
|
Gross profit |
9,5 |
12,6 |
32,8% |
|
EBITDA* |
11,0 |
13,8 |
25,5% |
|
EBITDA margin, % |
18,2% |
20,3% |
+2.1 п.п. |
|
Net profit |
4,7 |
5,2 |
10,6% |
|
Electricity transmission amount,1, billion kWh |
53,36 |
54,09 |
1,4% |
* EBITDA is calculated as follows: net income + income tax and other similar mandatory payments + interest payable + depreciation.
Source: Company’s data.
Loan portfolio of the Company for 2011 increased by 1.4 times (from 14.9 to 21.2 billion rubles), which is due to the necessity of the implementation of the investment program of the Company. Net debt at the end of 2011 amounted to 18.7 billion rubles. Indicator Net Debt/EBITDA remains at a fairly low level: 1.4 — with the limits set by the Company at 3.5x EBITDA. This will allow IDGC of Centre to attract the necessary loan resources for the implementation of the investment program planned for 2012 on comfortable conditions.
As a result of the approval investment program of IDGC of Centre for 2012 in the amount of 14.3 billion rubles the reduction in the amount of planned capital expenditures for 2012 will be 5.9% in comparison with the amount of the investment program for 2011, which, according to the current data, is 15.2 billion rubles.
The main areas of the investment program in 2012 will be: retrofitting and reconstruction (39%) and new construction (36% of the total investment program of IDGC of Centre, planned for 2012).
Substantial funds — about 1 billion rubles — within the investment program for 2012 the Company also plans to spend on the upgrade of its metering systems and the development of the automated information-measuring system for commercial electricity metering (AMI).
Financial accounting statements for 2011 and the previous periods are available on the Company’s web site at: http://www.mrsk-1.ru/ru/information/statements/rbsu/2011/
[1] Сommingled productive supply without taking into account the losses of Territorial Grid Companies.