IDGC of Center released its 2011 results under IFRS: key financial indicators showed a significant growth

13 April 2012

IDGC of Center has released its consolidated financial statements for 2011 under IFRS. The Company’s revenue in the reporting period in comparison with the same period of last year grew by 13,9% and was 69,0 billion RUR, including from electric energy transmission — 65,9 billion RUR, from technological connection — 1,8 billion RUR and other revenue — 1,3 billion RUR. The growth in the revenues from electric energy transmission is due to the increase of productive supply, which is associated with an increase in electricity consumption by large steel companies in the regions of the service area of IDGC of Center. The other revenue was 44.4% higher than in 2010, including through the provision of value-added energy services.

The operating profit of IDGC of Center for the reporting period amounted to 8,9 billion RUR, which is 12,7% higher over the indicator for the same reporting period of last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) were 14,8 billion RUR — this is 19,4% higher over the indicator for 2010. The net profit increased by 7,8%, and the indicator itself reached 5,5 billion RUR. This increase is associated with the outstripping rate of revenue growth over the rate of cost development and the transition of the Company to the RAB regulation.


billion RUR

Indicator

2011

2010

Change

Revenue (total)

69,0

60,6

13,9%

Including:

Revenue from electric energy transmission

65,9

57,4

14,8%

Revenue from technological connection

1,8

2,3

-21,7%

Other revenue

1,3

0,9

44,4%

Operating profit

8,9

7,9

12,7%

EBITDA1

14,8

12,4

19,4%

EBITDA margin

21,4%

20,5%

0,9 p.p.

Net profit

5,5

5,1

7,8%

Net profit margin

8,0%

8,4%

— 0,4 p.p.

Net debt2

18,6

14,7

26,5%

Net debt/EBITDA

1,3

1,2

+ 0,1

The calculation was based on the formula: profit and total combined profit for the year + income tax expenses + interest expenses + depreciation.
The calculation was based on the formula: short-term and long-term borrowings  cash and cash equivalents.

The operating expenses for 2011 amounted to 61,1 billion RUR, which is 12,9% higher in comparison with the previous year. The increase in the operating expenses is mainly due to increasing costs of the uncontrollable expenses: an increase in fees for electrical energy transmission through UNPG and for electricity transmission services through grids of other companies.

It should also be noted that following the results of 2011 there was a decrease compared to 2010 of the controllable costs for a number of articles: the cost of installation, repair and maintenance decreased by 12%, transportation costs — by 20%, information costs — by 15%, consulting, legal and audit services — by 12%, and telecommunications services — by 2.5 times. The increase in the controllable costs to a greater extent is due to rising prices for raw materials and electricity for own needs.

The credit portfolio (short-term and long-term credits and loans of the Company at the end of the reporting period) at the end of the reporting period was 21,2 billion RUR (for comparison: the value of the indicator as of December 31, 2010 was 14,9 billion RUR). The loan portfolio grew up 42,3%, the net debt as of December 31, 2011 —18,6 billion RUR.

The Company’s Management believes, that the results of 2011 demonstrated good results under IFRS, which are also consistent with the previously published results under RAS and serve as a confirmation of the designated by the Company’s Management strategic priorities for improving operational efficiency, quality and reliability of customer service, innovative technology development and improvement of investment attractiveness.

IFRS financial statements for 2011 and for the previous periods are available on the Company’s web site at: http://www.mrsk-1.ru/inform/msfo/

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