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A meeting of the Company’s Board of Directors was held on 31 December 2019, which approved the Company’s Business Plan for 2020 and forecast indicators for 2021-2024. The scenario conditions for the formation of the Business Plan for 2020 provide for indexation of tariffs for electric energy transmission services not higher than the forecast inflation, increase in labour productivity by at least 2%, decrease in the level of specific operating expenses by at least 2%, as well as indicators of dividend policy in accordance with Order of the Government of the Russian Federation dated 29.05.2017 № 1094-r.
Indicators of the Company’s Business Plan for 2020:
Data in bln RUB, unless specified otherwise
|
Indicators |
Planned for 2020 |
Expected fact for 2019 |
Change |
|
|---|---|---|---|---|
|
Revenue (total), including: |
96,2 |
95,1 |
1,2% |
|
|
Revenue from electric energy transmission |
92,9 |
91,0 |
2,1% |
|
|
Revenue from grid connection |
1,2 |
1,5 |
-20,0% |
|
|
Revenue from the reconstruction of electric grid facilities |
0,3 |
0,8 |
-62,5% |
|
|
Revenue from other activity |
1,8 |
1,8 |
- |
|
|
Cost of sales |
87,8 |
85,9 |
2,2% |
|
|
Sales profit1 |
6,1 |
6,9 |
-11,6% |
|
|
Sales profit margin, % |
6,3 |
7,3 |
-1,0 p.p. |
|
|
EBITDA2 |
18,1 |
17,93 |
1,1% |
|
|
EBITDA margin, % |
18,8 |
18,8 |
- |
|
|
Net profit |
2,0 |
1,93 |
5,3% |
|
|
Net profit margin, % |
2,1 |
2,0 |
0,1 p.p. |
|
|
Amount of electric energy transmitted, billion kWh |
46,2 |
46,3 |
-0,2 % |
|
|
Electric energy losses, % |
9,83 |
10,55 |
-0,72 p.p. |
|
[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] The expected indicators for 2019 are shown without taking into account the creation of unplanned estimated reserves
Planned revenues for electric energy transmission services in the framework of the Business Plan for 2020 is 2,1% higher than the expected fact of 2019, which is due to changes in tariffs for electricity transmission services. The projected revenue from grid connection services in 2020 is expected to be 1,2 bln RUB, which is 20,0% lower than the planned revenue for 2019. The decrease in the revenue is due to implementation of a number of large grid connection contracts in 2019. In 2020 the Company predicts revenue from other activities in the amount of at least 1,8 bln RUB, which corresponds to the expected fact of 2019.
The increase of cost of sales relative to the expected fact of 2019 is mainly due to rising prices for purchased electricity to compensate for losses, costs of services of grid organizations and other uncontrolled expenses.
Earnings before interest, taxes, depreciation and amortization (EBITDA) are projected above the expected fact of 2019 and will be 18,1 bln RUB. A negative impact on the financial result may be exerted by the realization of the risk of an increase in arrears for services rendered by the company. The positive factors for the financial results of the company may be exceeding the forecast for the volume of services for the electricity transmission and results of the implementation of the cost management program exceeding the forecast. Net profit for 2020 is projected at 2,0 bln RUB.
The projected value of the volume of electric energy transmission services, according to the Business Plan for 2020, will decrease by 0,2% and will be 46,2 billion kWh. The size of planned relative value of losses in 2020 is lower than the expected fact in 2019 by 0,72 p.p. and is 9,83%. The reduction in losses in 2020 compared with the expected fact in 2019 is due to the planned implementation of measures to reduce losses, including the performance of work by energy service companies.
Other IR-news of the Company can be found at: https://www.mrsk-1.ru/en/investors/presentations/ir_news/.