IR Releases
Rosseti Lenenergo released 1Q 2021 IFRS Results on May 28, 2021
Key Results in the Reporting Period
RUB mln unless otherwise stated
Indicator |
1Q2021 |
1Q2020 |
Change |
Financial performance |
|
|
|
Revenue |
24,012 |
21,598 |
11.2% |
Operating costs |
(16,437) |
(15,716) |
4.6% |
Operating profit |
7,833 |
5,916 |
32.4% |
Net profit |
6,103 |
4,954 |
23.2% |
EBITDA |
11,483 |
9,364 |
22.6% |
EBITDA margin, % |
47.8% |
43.4% |
4.4 pp |
Operating results |
|
|
|
Installed capacity, MVA |
34,828 |
28,983 |
20.2% |
Connected capacity, MW |
138 |
132 |
4.5% |
Net supply, mln kWh |
8,845 |
8,193 |
7.9% |
Network losses, mln kWh |
1,339 |
1,217 |
10.0% |
Notes:
EBITDA = Earnings before Interest, Tax, Depreciation and Amortization, plus interest payable under leases, plus loss on revaluation of fixed assets. Connected capacity is indicated in terms of the ongoing technological connection (without generation).
Net profit for the 1Q2021 is RUB 1.15 bn higher than the financial result for the same period last year. This made it possible for the Company to increase its net assets by 4.2% during the reporting period and raise the return on equity by 0.4 percentage points. The financial standing of the Company remains stable, and the credit rating is still at the highest level of AAA (RU), which is confirmed by the ACRA credit agency. - Aleksey Aleksandrovich Polinov, Deputy General Director for Economics and Finance of Rosseti Lenenergo |
Notes to the Financial Results
Rosseti Lenenergo, PJSC posted revenue of RUB 24,012 mln, including:
RUB 23,224 mln of electricity distribution revenue for the 1Q2021, with an increase of 10.9% (RUB 2,277 mln) year on year mainly due to an increase in electricity distribution resulting from higher electricity consumption amidst low ambient temperature and partial lifting of COVID-19 epidemiological restrictions.
RUB 704 mln of grid connection revenue, which is 20.75% (RUB 121 mln) higher year on year due to the performance of technological connection works by applicants that had been suspended earlier due to COVID-19.
RUB 16,437 mln of operating costs, which is 4.6% (RUB 721 mln) higher year on year, mainly due to an increase in depreciation costs for fixed assets and assets commissioned in 2020, as well as due to an increase in loss compensation costs due to higher sales surcharges of guaranteeing suppliers approved by the regulatory authorities as part of the loss purchase price.
Net profit for the reporting period amounted to RUB 1,149 mln or 23.2% up year on year, largely due to an increase in revenue from regulated activities and decreased costs of creating the reserve for expected credit losses.
The EBIDTA for the reporting period amounted to RUB 11,483 mln, which is 22.6% up year on year, mainly due to an increase in operating profit.
Principal Balance Sheet Items
RUB mln unless otherwise stated
Indicator |
March 31, 2021 |
December 31, 2020 |
Change |
Assets |
|
|
|
Non-current assets |
209,580 |
209,001 |
0.3% |
Current assets |
12,240 |
10,475 |
16.9% |
Total assets |
221,820 |
219,476 |
1.1% |
Net assets |
151,105 |
144,966 |
4.2% |
ROE |
8.7% |
8.3% |
0.4 pp |
Equity and liabilities |
|
|
|
Equity and reserves |
151,105 |
144,966 |
4.2% |
Non-current liabilities |
31,582 |
35,202 |
(10.3%) |
Current liabilities |
39,133 |
39,308 |
(0.5%) |
Total liabilities |
70,715 |
74,510 |
(5.1%) |
Net debt |
24,259 |
29,532 |
(17.9%) |
Net debt/EBIDTA |
0.65 |
0.85 |
- |
Notes:
Net debt is calculated as long-term and short-term loans and borrowings with interest payable, less cash and cash equivalents and less short-term financial investments. ROE is calculated as (Net Profit for 12 months / Equity) * 100
As of March 31, 2021, the assets of Rosseti Lenenergo, PJSC amounted to RUB 221,820 mln, which is 1.1% higher than the same indicator as of December 31, 2020. The increase in net assets amounted to RUB 6,139 mln (4.2%).
As of March 31, 2021, ROE amounted to 8.7%, showing an increase of 0.42 pp vs. the same indicator at the end of 2020.
As of March 31, 2021, net debt amounted to RUB 24,259 mln, which is 17.9% lower than the indicator as of the year beginning, was primarily due to the repayment of loans out of the positive net cash flow from operating activities.
As of March 31, 2021, Net debt/EBITDA amounted to 0.65x against 0.85x as of December 31, 2020.