IR Releases

29.04.2019

Lenenergo PJSC released its financial statements for the 1st quarter 2019 prepared in accordance with RAS

Basic results of report period

RUB mln, unless otherwise stated

Indicator

3M 2019

3M 2018

Change

 

Financial indicators

 

 

 

Revenue

21 057

19 249

9,4%

from electricity transmission

20 275

18 137

11,8%

from connection

716

969

-26,1%

other

66

143

-54,2%

Cost value

15 098

15 219

-0,8%

Gross profits

5 958

4 030

47,9%

Net profit

4 304

2 939

46,4%

EBITDA

8 822

6 439

37,0%

EBITDA margin

41,90

33,45

8,45 п.п.

Operational indicators

 

 

 

Installed capacity, МВА

32 384

31 192

3,8%

Connected capacity, МВт

107

138

-22,3%

Net supply, mln kWh

8 481

8 418

0,7%

Lenenergo electricity losses,

mln kWh

1 289

1 469

-12,3%

Note:

EBITDA = Net profit + Corporate tax + Amortization + Interest due – Reserve position for depreciation of debt financial investments
Connected capacity indicator specified taking into account generation (permanent technological connection). The results of the 1st quarter 2019 are preliminary. 

«Following the results of 1st quarter the Group’s revenue was RUB 4,3 bn, which is half as much as the financial results for the same period of previous year, mostly because of revenue growth from electricity transmission. The Group’s financial condition is constant, the level of profitability has increased, net debt/EBITDA indicator for 4Q is within comfortable level 0,81х».

- Polinov Aleksey Aleksandrovich,
Lenenergo PJSC Deputy Director General
in charge of Economics and Finance

Note to the operational indicators

The growth of net supply in 1st quarter 2019 by 0,7% in comparison with 1st quarter 2018 caused by:

      growth of energy consumption on all user groups including big manufacturing facilities and population of the Leningrad Region.

The loss enhancement by 1,62 p.p. caused by programs of decreasing energy losses, which include accounting improvements and exposure of off-the-meter and free-lance energy consumption.

Note to the financial results

For the 1st quarter 2019 Lenenergo PJSC revenues totaled RUB 21,057 mln, including:

      Revenues from electricity transmission services for the 1st quarter 2019 was RUB 20,275 mln, which is 11,8% (RUB 2,138 mln) higher than for the 1st quarter 2018 because of growth of wage rates and sizes of consumption in 2019;

      Revenues from technological connection services for the 1st quarter 2019 was RUB 716 mln, which is 26,1% (RUB 252 mln) lower than the same indicator for the previous period because of big contract closure with «Okhta cultural and business complex» PJSC;

      Other revenues for the 1st quarter 2019  decreased by 54,2% (RUB 78 mln) and totaled RUB 66 mln and caused by decrease of revenues from SPbVS JSC facility maintance connected with passing of exterior lighting objects from SPbVS Lensvet SPb UE under the term of the swap contract.

For the accounting period cost value of Lenenergo services decreased by 0,8% compared with the same period of 2018 and totaled RUB 15,098 mln.

For the accounting period net profit of Lenenergo totaled RUB 4,304 mln, which is что на 46,4% higher than the same indicator of the previous period mostly because of growth of revenues from electricity transmission services.

For the accounting period EBITDA of Lenenergo totaled RUB 8,822 mln, which is 37,0% higher than the same indicator of the previous period because of growth of gross profits  from electricity transmission services. 

Assets and principal liabilities

RUB mln, unless otherwise stated

Indicator

31.03.2019

31.12.2018

Change

 

Assets

 

 

 

Fixed assets

198 509

198 386

0,1%

Current assets

21 774

16 334

33,3%

Total assets

220 284

214 720

2,6%

Net assets

144 006

139 702

3,1%

Return on equity (ROE)

8,16

7,43

0,73 p.p.

 

Equity and Liabilities

 

 

 

          Equity and reserves

144 006

139 702

3,1%

Long-term liabilities

43 266

42 038

2,9%

Short-term liabilities

33 012

32 980

0,1%

Total liabilities

76 278

75 018

1,7%

Net debt

23 396

29 016

-19,4%

Net debt/EBITDA for 4Q

0,81

1,10

-

Note:
Net Debt was calculated according to the formula: long-term and short-term credits and loans - money and their equivalents – short-range investments
ROE was calculated according to the formula: (Net debt (for 4Q)/Equity)*100 ROE 

As per 31.03.2019 the assets of Lenenergo PJSC totaled RUB 220,284 mln, which is 2,6% higher than the same indicator for the end of 2018. The change of assets is driven by the Group’s investment program and positive financial result for the fiscal period. For the 1st quarter 2019 the growth of net assets totaled RUB 4,304 mln (3,1%) because of net profit in the fiscal period.

Return on equity (ROE) totaled 8.16%, which is 0,73 p.p. higher than the same indicator for the 2018. The growth of indicator is connected with the growth of the Group’s net profit (for 4Q) in the context of financial result improvement for the 1st quarter 2019 in comparison with the same period of 2018.

For the end of the fiscal period credit portfolio of Lenenergo PJSC submitted in a form of long-term and short-term credits and loans totaled RUB 34,509 mln. The changes of debt concerning the beginning of 2019 on the sum of a principal debt are absent.

For the 1st quarter 2019 the net debt of Lenenergo PJSC totaled RUB 23,396 mln, which is 19,4% lower than the same indicator for the beginning of the year. The decrease of net debt caused by the growth of cash balance.

As per 31.03.2019 Net debt/EBITDA (for 4Q) of Lenenergo PJSC totaled 0,81х against 1,10х in the end of 2018. The indicator dynamic is driven by considerable reduction of net debt and contemporary growth of EBITDA  for the 1st quarter 2019.

Investments

RUB mln, unless otherwise stated

Indicator

3M 2019

3M 2018

Change

 

Cash disbursement, mln RUB excluding VAT

3 102

1 241

149,9%

Fixed assets input, mln RUB

1 458

895

62,9%

Power input, MVA

38

83

-54,2%

Power input, km

157

234

-32,9%

For the fiscal period the volume of investments totaled RUB 3,102 mln (149,9% higher than for the same period of 2018), the volume of power input totaled RUB 1,458 mln, which is 62,9% higher than for the same period of 2018 (RUB 895 mln).

The increase in indicators on development and input in fixed assets in 1 quarter 2019 concerning indicators for the same period of 2018 is caused by increase of obligation volumes under the signed contracts of technological connection.

Reduction of physical parameters in comparison with the previous year is mostly caused by replacement of the switching devices and reconstruction of a building part of transformer substations without replacement of power transformers and also reduction of average extent of a linear part of a construction object for technological connection of consumers to the grid.