IR Releases
PJSC Lenenergo (incorporated into the Rosseti Group) released its financial statements for 6M 2018 prepared in accordance with RAS.
Revenue of PJSC Lenenergo for 6M 2018 increased by 10% to RUB 35,593 mln compared to the same period of the last year. EBITDA for the reporting period amounted to RUB 13,573 mln (+13%). Net profit in 1H 2018 totaled RUB 5,730 mln (+24%).
RUB mln, unless otherwise specified
|
Indicator |
6M 2018 |
6M 2017 |
Change |
|
Operating performance |
|
|
|
|
Productive electricity supply, mln kWh |
15,911 |
14,989 |
6.1% |
|
Electricity losses, % |
11.63 |
12.03 |
-0.4 p. p. |
|
Connected capacity, MW |
345 |
326 |
5.7% |
|
Financial performance |
|
|
|
|
Revenue from sales, including: |
35,593 |
32,460 |
9.6% |
|
- From electricity transmission services |
33,314 |
28,723 |
16.0% |
|
- From technological connection services |
2,008 |
3,372 |
-40.4% |
|
- From other activities |
270 |
366 |
-26.0% |
|
Cost |
27,982 |
25,161 |
11.2% |
|
Gross profit |
7,611 |
7,299 |
4.3% |
|
Net profit |
5,730 |
4,624 |
23.9% |
|
Net profit margin, % |
16.10 |
14.25 |
1.85 p. p. |
|
EBITDA |
13,573 |
12,001 |
13.1% |
|
EBITDA margin, % |
38.13 |
36.97 |
1.16 p. p. |
|
|
|
|
|
|
|
As at 30.06.2018 |
As at 31.12.2017 |
Change |
|
Balance sheet indicators |
|
|
|
|
Assets |
205,515 |
205,678 |
-0.1% |
|
Equity |
135,046 |
131,736 |
2.5% |
|
Return on Equity (ROE), % |
4.24 |
9.53 |
-5.29 p. p. |
|
Liabilities |
70,470 |
73,941 |
-4.7% |
|
Loan portfolio and debt position |
|
|
|
|
Loans and credits |
30,927 |
36,925 |
-16.2% |
|
Net debt |
25,455 |
34,501 |
-26.2% |
|
Net debt/EBITDA |
0.85 |
1.21 |
- |
Notes on the indicators calculation:
EBITDA is recorded net of the balance of provision for impairment of debt investments. EBITDA = Net profit + Profit tax + Depreciation + Interest payable – Balance of provision for impairment of debt investments.
Debt on loans and credits is recorded with due regard to interest (the sum of lines 1410 and 1510 of the balance sheet).
Net debt is calculated as the sum of loans and credits net of cash and short-term investments.
ROE is calculated by the formula: (Net profit/Equity)*100
Revenue
Revenue from sales for 1H 2018 amounted to RUB 35,593 mln, +9.6% compared to the same period of 2017.
Revenue from electricity transmission services
The growth of revenue from electricity transmission services in 1H 2018 relative to 1H 2017 was due to increased tariff rates in 2018 and inclusion in the volume of productive supply of the consumers from the former territory of activity of JSC St. Petersburg Electric Networks.
Revenue from technological connection services
The decrease in revenue from technological connection services in 1H 2018 relative to 1H 2017 by 40.4% was due to the issuance of technological connection acts in 1H 2017 upon the readiness of energy receiving devices of applicants under the obligations performed by PJSC Lenenergo in Q4 2016 within the program of the fulfilment of accumulated obligations.
At the same time, the obligations under current contracts were fulfilled in 1H 2018 in accordance with the planned terms of their closure.
Revenue from other activities
Revenue from other activities decreased in 1H 2018 compared to 1H 2017 due to the change of the list of objects serviced under the contracts of operational maintenance of electric grid property from 01.04.2017 concluded with JSC St. Petersburg Electric Networks and JSC Petrodvorets Grid due to the conclusion of lease agreements.
Cost
The cost of services rendered in 1H 2018 increased by 11.2% compared to the same period of 2017.
RUB mln, unless otherwise specified
|
Indicator |
6M 2018 |
6M 2017 |
Change |
|
Material costs, including purchased power for losses compensation |
5,305 |
4,831 |
9.8% |
|
Production works and services |
10,489 |
10,081 |
4.0% |
|
Labour compensation fund with due regard to insurance premiums |
3,311 |
3,056 |
8.3% |
|
Depreciation |
5,814 |
5,187 |
12.1% |
|
Other expenses |
3,063 |
2,006 |
52.6% |
|
Total |
27,982 |
25,161 |
11.2% |
The performance indicators of 1H 2018 were influenced by the implementation of the stage of consolidation of electric grid assets of JSC St. Petersburg Electric Networks and JSC Petrodvorets Grid by the conclusion of lease agreements from 01.04.2017. The cost increase in 1H 2018 compared to 1H 2017 was due to the growth of the Company's non-controllable expenses, i.e. expenses for compensation of losses and services of PJSC FGC UES, expenses for the rent of electric grid property, the amount of depreciation and property tax upon implementation of the investment program in 2017-2018.
Financial result
Gross profit of PJSC Lenenergo in 6M 2018 amounted to RUB 7,611 mln, which is 4.3% higher than in the same period of the previous year due to the more significant growth of revenue compared to the increase of cost.
Net profit of the Company in 1H 2018 totalled RUB 5,730 mln. The financial result improved by RUB 1,105 mln, or 23.9% compared to the same period of 2017. The improvement in financial results was due to the growth of gross profit and the increase in the balance of other income and expenses.
EBITDA
EBITDA for 6M 2018 amounted to RUB 13,573 mln and increased by RUB 1,571 mln, or 13.1% compared to the same period of 2017.
The increase in EBITDA relative to the same period of 2017 was mainly influenced by the growth of the Company’s sales profit (excluding depreciation) and the improvement of the balance of other income and expenses.
EBITDA calculation, RUB mln
|
EBITDA |
13,573 |
|
Depreciation of fixed assets and intangibles assets |
5,814 |
|
Interest payable |
636 |
|
The balance of provision for impairment of debt investments |
90 |
|
Profit tax |
1,482 |
|
Net profit |
5,730 |
Note:
Loan portfolio and debt position
Loans and credits
The Company's debt (including interest debt) as of 30.06.2018 amounted to RUB 30,927 mln, which is RUB 5,998 mln lower than its value at the year beginning. The indebtedness on the principal debt amount decreased by RUB 6,000 mln, while interest debt increased by RUB 2 mln.
The reduction of the principal debt amount relative to the year beginning by RUB 6,000 mln was due to the formation of positive net cash flow from operating activities.
Net debt
The decrease in net debt of PJSC Lenenergo to the level of the end of 2017 was 26.2% due to a drop in the Company's debt by RUB 5,998 mln followed by an increase in the cash balance by RUB 3,048 mln.
As of 30.06.2018, Net debt/EBITDA ratio decreased by 0.36 points to 0.85 compared to the end of 2017. The dynamics of the indicator was due to the decrease in net debt and the growth of EBITDA reduced to the annual level.
Investments
|
Investment program fulfillment |
6M 2018 |
6M,2017 |
Change |
|
Development, RUB mln w/o VAT |
5,059 |
6,318 |
-19.9% |
|
Commissioning of fixed assets, RUB mln |
4,283 |
7,623 |
-43.8% |
|
Capacity input, MVA |
174 |
886 |
-80.4% |
|
Capacity input, km |
351 |
639 |
-45.% |
The volume of capital investments in 1H 2018 amounted to RUB 5,059 mln, which is 19.9% lower than the indicator for the same period of 2017. The commissioning of fixed assets in 6M 2018 totalled RUB 4,283 mln, which is 44% lower than in the same period of 2017. The decline in development and commissioning of fixed assets was due to the completion in 2017 of the work on the program of the fulfilment of accumulated obligations under the contracts of technological connection of subscribers launched in 2016.
