IR Releases
Rosseti Lenenergo (legal name - "Lenenergo" PJSC ), trading code on the Moscow Exchange: LSNG and LSNGP, published financial statements for the 9 months of 2019, prepared in accordance with RAS
Main results of the reporting period
mln rub, unless otherwise specified
Name of the rates |
9 months 2019 |
9 months 2018 |
Amendment |
Financial rates |
|
|
|
Revenue |
58,463 |
53,741 |
8.8% |
from electric power transmission |
54,727 |
49,135 |
11.4% |
from technological connection |
3,442 |
4,218 |
-18.4% |
from other activities |
294 |
387 |
-24.1% |
Cost price |
41,588 |
41,277 |
0.8% |
Gross profit |
16,875 |
12,464 |
35.4% |
Net profit |
9,963 |
9,184 |
8.5% |
EBITDA |
23,226 |
21,087 |
10.1% |
EBITDA profitability |
39.7 |
39.2 |
0.5 p.p. |
Operating rates | |||
Installed capacity, MVA |
32,656 |
31,543 |
3.5% |
Connected capacity, MW |
518 |
563 |
-8% |
Productive supply, mln kWh |
22,537 |
22,300 |
1.1% |
"Lenenergo" network losses , mln kWh |
2,597 |
2,830 |
-8.2% |
Notes:
EBITDA = Profit before tax + Depreciation + Interest payable - Reserve balances for devaluation of debt financial investments.
Connected capacity rate is stated on the basis of constant technological connection (without generation). Data for 9 months of 2019 are preliminary.
"Profit of the Company by the results of the nine months of 2019 amounted to 9.96 bn rub, which is exceeding the financial result for the same period of the previous year. The main factor is the growth of the revenue from electric power transmission. Financial standing of the Company is consistently stable, level of profitability has increased, Net debt/EBITDA Ratio (for 4 quarters) has been decreased to 0.7х".
- Polinov Aleksey Aleksandrovich,
Deputy General Director
of Economy and Finance of Rosseti Lenenergo
Explanations for operating results
A growth in the net supply of electricity for 9 months of 2019 by 1.1% relative to 9 months of 2018 is due to:
■ an increase in electricity consumption in all consumer groups, including large industrial enterprises and the population in the Leningrad Region.
Loss reduction by 0.92 percentage points occurred due to the implementation of the program to reduce electricity losses, which includes measures to modernize the electricity accounting system, identify unaccounted and non-contractual electricity consumption.
Explanations for financial results
Revenue of "Rosseti Lenenergo" for 9 months of 2019 amounted to 58,463 million rubles, including:
Revenue for electricity transmission services for 9 months of 2019 amounted to 54,727 million rubles, which is 11.4% (5,592 million rubles) higher than the rate value for 9 months of 2018 due to increased electricity consumption and the return of the accumulated lost income and tariff revenue transfer (smoothing) by regional regulators.
Revenue from technological connection services for the 9 months of 2019 amounted to 3,442 million rubles, which is 18.4% (777 million rubles) lower than the same indicator of the previous period. The decrease was due to the implementation of obligations for large applicants for 9 months of 2018, including the connection to the electric network of the "Lakhta Center" multifunctional complex.
Revenue from other activities for 9 months of 2019 amounted to 294 million rubles, which is 24.1% (93 million rubles) lower than the same period last year rate due to reduced maintenance of power grid equipment taking in consideration transfer of outdoor lighting objects "SPb power Network" JSC to SPb State Unitary Enterprise"Lensvet" for exchange agreement.
The price cost of the services provided by "Rosseti Lenenergo" for the reporting period amounted to 41,588 million rubles. and exceeded the value for 9 months of 2018 by 311 million rubles. (0.8%). The main reasons for the increase in the total price cost of production was an increase in depreciation, costs for services of "FGC UES" PJSC , for purchased energy to compensate for losses while reducing the cost of electricity transmission services of third-party territorial grid companies.
Net profit of "Rosseti Lenenergo" for reporting period amounted to 9,963 mln rub, which is 8.5% higher than that of the previous year.
EBITDA rate of "Rosseti Lenenergo" for the reporting period amounted to 23, 226 mln rub, which is 10,1% higher than the same rate of the previous period, mainly by the growth of the revenue from electric power transmission services.
Main balance sheet items
mln rub, unless otherwise specified
Name of the rates |
30.09.2019 |
December 31, 2018 |
Amendment |
Assets |
|
|
|
Fixed assets |
203,201 |
198,386 |
2,4% |
Current assets |
21 373 |
16 334 |
30,8% |
Total assets |
224,574 |
214,720 |
4.6% |
Net assets |
148,326 |
139,702 |
6,2% |
Return on equity (ROE) |
7.5 |
7.4 |
0,1 p.p. |
Equity and liabilities |
|
|
|
Equity and provisions |
148,326 |
139,702 |
6,2% |
Long-term liabilities |
38 709 |
42,038 |
-7,9% |
Current liabilities |
37 539 |
32,980 |
13,8% |
Total liabilities |
76 248 |
75,018 |
1,6% |
Net debt |
20 033 |
29,016 |
-31,0% |
Net debt/EBITDA for 4 quarters |
0.7 |
1.1 |
- |
Notes:
As of September 30, 2019, the asset price of "Rosseti Lenenergo" amounted to 224, 574 mln rub, which is 4.6% higher than the same rate at the end of 2018. The change in assets is associated with the implementation of the investment program by the Company and the receipt of a positive financial result for the reporting period. The growth in net assets for 9 months of 2019 amounted to 8, 624 million rubles. (6.2%).
Return on equity (ROE) of "Rosseti Lenenergo" amounted to 7.5%, which is 0.10 percentage points. higher than in 2018. The improvement of the rate is associated with an increase in the Company's net profit (for 4 quarters).
The loan portfolio of "Rosseti Lenenergo" in the form of short-term and long-term credits and loans of the company at the end of the reporting period amounted to 30 880 million rubles. Reduction of debt compared to the beginning of 2019 amounted to 3, 658 million rubles, including in the amount of the main debt - 3,597 million rubles. - credits repaid due to positive net cash flow from operating activities.
As of September 30, 2019, Net Debt / EBITDA (for 4 quarters) rate of "Rosseti Lenenergo" amounted to 0.7x versus 1.1x as of the end of 2018. The dynamics of the rate is due to a significant decrease in the Company's net debt for 6 months of 2019 with a simultaneous increase in EBITDA.
Investments
mln rub, unless otherwise specified
Name of the rates |
9 months 2019 |
9 months 2018 |
Amendment |
Utilization, mln rub, excluding VAT |
14 180 |
10 175 |
39,4% |
Input in fixed assets, mln rub |
9 964 |
9 978 |
-0,01% |
Input in capacity, MVA |
426 |
389 |
9,5% |
Input in capacity, km |
962 |
1 029 |
-6,5% |
Notes:
Amount of capital investments for the reporting period was 14, 180 mln rub, which is 39.4% higher than the indicator for the same period of 2018 (10, 175 mln rub). Amount of the input for the reporting period was 9, 964 mln rub, which is 0.01% lower than the indicator for the same period of 2018 (9, 978 mln rub).
Increase in indicators of utilization and input for the 9 months of 2019 in comparison with the indicators for the same period of 2018 is due to increase in the scope of liabilities under concluded contracts on technological connection.