IR Releases

22.02.2019

Lenenergo released financial statements for the 2018 in accordance with RAS

Basic results of report period

RUB mln, unless otherwise stated

Indicator

2018

2017

Change

 

Financial indicators

 

 

 

Revenue

76 450

74 682

2,4%

from electricity transmission

68 807

60 600

13,5%

from connection

7 066

13 377

-47,2%

other

577

705

-18,2%

Cost value

57 252

53 917

6,2%

Gross profits

19 198

20 765

-7,5%

Net profit

10 386

12 561

-17,3%

EBITDA

26 328

28 531

-7,7%

EBITDA margin

34,44

38,20

-3,76 п.п.

Operational indicators

 

 

 

Installed capacity, МВА

32 216

30 460

5,8%

Connected capacity

943

956

-1,5%

Net supply, mln kWh

30 560

29 669

3,00%

Lenenergo electricity losses, mln kWh

4 162

4 193

-0,7

Note:
EBITDA = Net profit + Corporate tax + Amortization + Interest due – Reserve position for depreciation of debt financial investments 

«Following the results of 2018 the Society’s revenue totaled more than RUB 10 bn. Despite the some decrease of financial result compared with the previous year, the revenue growth from electricity transmission was 14%.The Socity’s financial condition is stable – debt load is decreasing, net debt/EBITDA indicator is within comfortable level 1,1х».

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

Note to the operational indicators

Lenenergo PJSC revenues were RUB 76,450 mln, including:

For 2018 the revenue from electricity transmission totaled RUB 68,807 mln, which is 13,5% (RUB 8,207 mln) higher than for the same period of the previous year, including:

        growth of wage rates including way of "smoothing" return of own required gross proceeds of Lenenergo PJSC used by Rates and Price Policy Committee of Leningrad Region in 2018;

        inclusion in the volume of a net supply for consumers on the former zone of SPbVS JSC activity as per 01.04.2017;

 

For 2018 the revenue from technological connection totaled RUB 7.066 mln, which is 47,2% (RUB 6,311 mln) lower than the same indicator for the previous period. The main reason of decrease is higher than normal total revenue technological connection in 2017, which was higher than annual average values for the last five years (RUB 6-7 bn at average per year). The growth of this indicator in 2017 was driven by huge amount of completed grid connection contracts within implementation of the program begun in 2016 of completion of accumulated obligations, including within implementation of the program of the state support of Lenenergo PJSC.


For 2018 the other revenue totaled RUB 577 mln, which is 18,2% (RUB 128 mln) than the same indicator for the previous period caused by changes as per 01.04.2017 in the description of items served within contracts of operational service of power grid property between Lenenergo PJSC, SPbVS JSC and PES JSC because of execution of rent agreements between companies.


For the fiscal period the cost value of Lenenergo PJSC services totaled RUB 57,252 mln, which is 6,2% higher than the same indicator for the previous period. The growth of the cost value in 2018 in comparison with the same period of 2017 caused by determining influence of growth of Group’s uncontrollable expenses including:


      growth of expenses for purchased electricity to compensate losses due to growth of an average tariff;

      growth of expenses for PES JSC electricity transmission services due to increase rate of a tariff for contents and increase of volume of the contracted capacity;


      growth of amortization upon implementation of the investment program in 2017-2018;


      growth of taxes including property tax caused by changes in the Tax Code and the legislation of territorial subjects of the Russian Federation.

Excluding these indicators the growth of the cost value will be 0,9%. 

For the fiscal period the net profit of Lenenergo PJSC totaled RUB 10,386 mln, which is 17,3% lower than the same indicator for the previous period  because of decrease of total revenue from technological connection services; 

For the fiscal period EBITDA of Lenenergo PJSC totaled RUB 26,328 mln, which is 7,7% lower than the same indicator for the previous period  because of decrease of total revenue from technological connection services; 

At the same time EBITDA excluding technological connection services totaled RUB 19,734 mln, which is RUB 3,637 mln (22,6%) higher than the same indicator for 2017.

Assets and principal liabilities

RUB mln, unless otherwise stated

Indicator

2018

2017

Change

 

Assets

 

 

 

Fixed assets

198 386

190 530

4,1%

Current assets

16 334

15 148

7,8%

Total assets

214 720

205 678

4,4%

Net assets

139 702

131 736

6,0%

Return on equity (ROE)

7,43

9,53

-2,1 п.п.

 

Equity and Liabilities

 

 

 

           Equity and reserves

139 702

131 736

6,0%

Long-term liabilities

42 038

33 478

25,6%

Short-term liabilities

32 980

40 464

-18,5%

Total liabilities

75 018

73 942

1,5%

Net debt

29 016

34 501

-15,9%

Net debt/EBITDA for 4Q

1,10

1,21

-

 

 

 

 

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 31.12.2018, the Lenenergo assets totaled RUB 214,720 mln, which is 4,4% than the same indicator for 2017. Change of assets connected with Group’s implementation of the investment program and obtaining positive financial result in 2018. As of the end of the financial year, the growth of net assets totaled RUB 7,966 mln (6%). 

Return on equity (ROE) of Lenenergo PJSC totaled 7.43, which is 2.1 p.p. lower than the same indicator for the previous period. The decrease of indicator connected with decrease of net profit in comparison with 2017 affected by growth of its own equity funded with financial result in 2018.

For the end of the fiscal period the credit portfolio of Lenenergo PJSC submitted in a form of long-term and short-term credits and loans totaled RUB 34,538 mln, which is 6,5% lower than the same indicator for the beginning of the year. The sum of principal debt decreased by RUB 2,403 mln, the sum of interest debt increased by RUB 17 mln in comparison with the beginning of the year.

The decrease of sum of principal debt of Lenenergo PJSC comparing with beginning of the year driven by positive cash balance created by operating activities. 

For 12 months 2018 net debt of Lenenergo PJSC totaled RUB 29,016 mln, which is 15,9% lower than in the beginning of the year. The decrease of net debt caused by:

      Society’s debt decrease;

      Growth of cash balance.

As per 31.12.2018 Net debt/EBITDA of Lenenergo PJSC totaled 1,10х against 1,21х in the end of 2017. The indicator dynamic is driven by considerable reduction of the Group’s net debt compared with decrease of EBITDA.

Investments

RUB mln, unless otherwise stated

Indicator

2018

2017

Change

 

Cash disbursement, mln RUB excluding VAT

20 722

28 203

-26,5%

Fixed assets input, mln RUB

23 265

28 783

-19,2%

Power input, MVA

864

2 329

-62,9%

Power input, km

1 070

2 136

-49,9%

For the fiscal period the volume of investments totaled RUB 20,722 mln ( 26.5% lower than the same indicator for the previous period), the volume of power input for the fiscal period totaled RUB 23,265 mln, which is 19,2% lower than the same indicator for the previous period of 2017 (RUB 28,783 mln).

The decrease of these indicators in fiscal period caused by:

      decrease of volumes of the accepted property built by appellants within the contracts of technological connection;

      optimization of investment program according to scenario conditions and an exception of objects, regardless of cancellation of contracts of technological connection;

      decrease of volumes of investment program in Leningrad Region as of the end of the tariff and balance decisions made by the regional regulator.