IR Releases

22.02.2020

IR-Press Release February 22, 2020

Rosseti Lenenergo (Registered Name: PJSC Lenenergo) Publishes Its RAS Financial Statements for 2019

Key Results in the Reporting Period

millions of Russian rubles unless otherwise stated

Indicator

2019

2018

Change

Financial Results

 

 

 

Revenue

82,371

76,450

7.7%

electricity distribution

75,696

68,807

10.0%

network connection

6,242

7,066

-11.7%

other

433

577

-25.0%

Cost of sales

58,279

57,252

1.8%

Gross profit

24,092

19,198

25.5%

Net profit

12,705

10,386

22.3%

EBITDA

30,546

26,328

16.0%

EBITDA margin

37.08

34.44

2.64 pp

Operating Results

Installed capacity, MVA

33,381

32,216

3.6%

Connected capacity, MW

893.4

1,032.5

-15.5%

Net supply, mn kWh

30,625

30,560

0.2%

Lenenergo electricity network losses, mn kWh

3,967

4,162

-4.7%

Notes:

EBITDA is net of the reserve balance for impairment of financial investments.
EBITDA: Earnings Before Interest, Tax, Depreciation and Amortization, less Reserve Balance for Impairment of Financial Investments.

 

“The Company made a profit of 12.7 billion rubles in 2019, which is a 1.2-fold increase on our year-ago profit. This is primarily due to a rise in revenue from electricity distribution. The high operating results allowed us to continue our efforts to reduce the debt burden and improve the equity ratio.”

- Aleksey Polinov
Deputy CEO, Economic Affairs and Finance
Lenenergo

 

Notes to the Operating Results

Net electricity supply increased by 0.2% in 2019 on 2018, largely due to:

      Higher household consumption, with industrial consumption remaining the same as in 2018.

The decrease of 0.52 percentage points in electricity losses is due to carrying out the electricity loss reduction program, which includes measures to modernize the electricity metering system and detect unbilled and noncontractual electricity consumption.

Notes to the Financial Results

PJSC Lenenergo (“Rosseti Lenenergo”) posted revenue of 82,371 million rubles in 2019, including:

75,696 million rubles of electricity distribution revenue in 2019, or an increase of 10.0% (6,889 million rubles) on 2018, due to a rise in electricity consumption and higher tariffs resulting from regional regulators providing compensation for accumulated lost income and lost tariff-based revenue (“smoothing mechanism”).

6,242 million rubles of network connection revenue in 2019, or 11.7% (824 million rubles) lower than in the prior year, due to the fulfillment of obligations to large requesting entities in 2018, including providing an electricity connection for the Lakhta Center multifunctional complex.

433 million rubles of other revenue in 2019, or 25.0% (144 million rubles) lower than in 2018, mainly because of decreased grid equipment maintenance services resulting from the transfer of Saint Petersburg Power Grid’s street lighting facilities to Lensvet under an equipment swap contract.

Rosseti Lenenergo’s cost of sales totaled 58,279 million rubles in the reporting period, or 1.8% (1,027 million rubles) up on 2018, largely due to increases in depreciation and amortization, expenses associated with FGC UES services, and electricity purchased for compensation for electricity losses alongside lower prices of electricity distribution services provided by outside territorial grid organizations.

Rosseti Lenenergo earned a net profit of 12,705 million rubles in the reporting period, or 22.3% up on the prior year, because of a rise in revenue from electricity distribution services.

Rosseti Lenenergo posted EBITDA of 30,546 million rubles in the reporting period, which is a 16.0% increase on the year-earlier period, primarily due to a rise in revenue from electricity distribution services.

Principal Balance Sheet Figures

millions of Russian rubles unless otherwise stated

Indicator

2019

2018

Change

Assets

 

 

 

Non-current assets

211,611

198,386

6.7%

Current assets

15,185

16,334

-7.0%

Total assets

226,796

214,720

5.6%

Net assets

151,068

139,702

8.1%

ROE

8.41

7.43

0.98 pp

Equity and Liabilities

 

 

 

Equity and reserves

151,068

139,702

8.1%

Non-current liabilities

29,890

42,038

-28.9%

Current liabilities

45,838

32,980

39.0%

Total liabilities

75,728

75,018

0.9%

Net debt

20,924

29,016

-27.9%

Net debt/EBITDA for 4 quarters

0.69

1.10

-

 

 

 

 

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 4 quarters] / Equity) * 100

Rosseti Lenenergo’s assets totaled 226,796 million rubles as at December 31, 2019, or 5.6% higher than at year end 2018. Assets changed due to the Company implementing the capex program and receiving a positive financial result in the reporting period. Net assets grew by 11,366 million rubles (8.1%) in 2019.

Rosseti Lenenergo posted ROE of 8.41%, or 0.98 percentage points higher than in 2018. ROE improved because of a rise in the Company’s net profit.

Rosseti Lenenergo’s loan portfolio, composed of short-term and long-term loans and borrowings, totaled 28,214 million rubles as at the end of the reporting period.

Rosseti Lenenergo’s net debt/EBITDA was 0.69x as at December 31, 2019, as against 1.10x at year end 2018.

Investment

millions of Russian rubles unless otherwise stated

Indicator

2019

2018

Change

Capital investment, mn RUB,

exclusive of VAT

26,135

20,722

26%

Commissioned fixed assets, mn RUB

23,997

23,265

3%

Commissioned capacity, MVA

1,078

1,031

5%

Commissioned capacity, km

2,294

1,900

21%

Notes:

The 2019 actual figures are based on available information.

Capital investment totaled 26,135 million rubles in the reporting period, or 26% higher than a year earlier (20,722 million rubles). The value of commissioned fixed assets reached 23,997 million rubles, or 3% higher than in 2018 (23,265 million rubles).

Capital investment in 2019 increased on 2018 due to a larger scope of work on technical upgrading and rehabilitation.