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Inter RAO – Electrogeneratsiya publishes its financial statements according to RAS for Q1 2017

Inter RAO – Electrogeneratsiya publishes its financial statements according to RAS for Q1 2017

Inter RAO – Electrogeneratsiya published its financial statements for Q1 2017according to the Russian Accounting Standards (RAS).

Indicator*

Q1 2017

Q1 2016

Change, %

Revenue

47.0

44.6

5.4

Production cost

33.9

33.5

1.1

Sales profit

12.6

10.6

19.1

Net profit/loss

17.1

7.6

124.5


As of March 31, 

2017

As of December 31, 

2016

Change, %

Total assets

288.0

269.0

7.1

Equity

256.9

239.9

7.1

Loans and borrowings

-

-

-

Net debt**

-8.9

-3.6

-

* In billion RUB unless specified otherwise. Percentage change (%) is calculated using accounting data in thousand RUB.

The Net Debt value is calculated as follows: Short-term loans and borrowings plus Long-term loans and borrowings less Cash and cash equivalents less Short-term financial investments (cash in bank accounts)

The operation results of Inter RAO – Electrogeneratsiya are available on the company's website: http://www.irao-generation.ru/press/news/ 

Income statement

Revenue of Inter RAO – Electrogeneratsiya in Q1 2017 amounts to RUB 47 bn exceeding the figure for Q1 2016 by 5.4% (or by RUB 2.4 bn).

Revenue from electricity sales increased by 10.5% (RUB 2.2 bn) as compared to Q1 2016 and amounts to RUB 23.1 bn mainly due to increase in electricity sales by 10.2% (or by 2.005 bn kWh) which is directly attributed to increase in production of the Perm Thermal Power Station (TPS) as compared to Q1 2016 when a scheduled repair of its power unit 2 was carried out.

Revenue from capacity sales in Q1 2017 increased by 3.9% (RUB 0.7 bn) as compared to Q1 2016 and amounts to RUB 17.8 bn mainly due to increase in revenue from Capacity Delivery Agreements (CDA). 

Revenue from CDAs increased by RUB 0.6 bn (+5.5%) to RUB 10.8 bn mainly due to:

  • Increase in CDAs calculated prices (RUB 0.5 bn increase in revenue) at several plants: 

- power unit 9 of the Cherepet TPS and power unit 2 of the Yuzhnouralsk TPS 2 due to increase in the "next day delivery market" factor which reflects the payoff amount for investments in power generation;

- power unit 3 of the Kashira TPS and power unit 3 of the Sochi CHP due to additional payments for the "CDA delta"

  • recertification of power generation equipment of the Kharanorskaya TPS, Urengoy TPS, Yuzhnouralsk TPS 2 (increase in revenue by RUB 0.1 bn).

Revenue from other sales in Q1 2017 amounts to RUB 4.8 bn as compared to RUB 5.3 bn in Q1 2016 mainly due to decrease in revenue from sales of inventory items to third parties (RUB -0.6 bn).

Cost of goods sold and services provided in Q1 2017 increased by 1.1% (RUB 0.4 bn) as compared to Q1 2016 and amounts to RUB 33.9 bn.

Main reasons for changes in this figure were: 

  • Increase in production cost by RUB 1.0 bn (+8.7%) as compared to Q1 2016:

  • In Q1 2017, the cost of fuel increased as compared to Q1 2016 mainly due to increase in production of the Inter RAO – Electrogeneratsiya power plants by 10.5% (RUB 1.5 bn). Insignificant increase in the cost of fuel (by RUB 0.1 bn) was offset by a decrease in the reference fuel consumption value for power generation by 5.1 gram of reference fuel per kWh (resulted in decrease of cost by RUB 0.1 bn) and also by decommissioning of inefficient generating equipment of the total capacity of 1.2 GW of the Cherepet TPS and Verkhniy Tagil TPS and improving plants' load profiles.

  • The efficiency improvement measures implemented by the company also contributed to a lower increase in production cost and resulted in decrease in semi-fixed cost by 5.7% (or RUB 0.5 bn) as compared to last year, while the actual inflation rate was 4.3% (according to the Russian Federal State Statistics Service). 

  • Decrease in cost of purchasing inventory items to resell by RUB 0.6 bn (-11.7%).

Gross profit in Q1 2017 amounts to RUB 13.1 bn up by 18.5% (RUB 2.1 bn) as compared to Q1 2016.

Sales profit in Q1 2017 increased to RUB 12.6 bn (by 19.1% or RUB 2.0 bn) as compared to Q1 2016.

Balance of other incomes and expenses (excluding the balance of interest payments and income from shares in other companies) amounts to RUB 6.7 bn as compared to RUB -0.3 bn in Q1 2016 mainly due to income from liquidation of a subsidiary – NVGRES HOLDING Limited.

Net profit amounts to RUB 17.1 bn as compared to RUB 7.6 bn in Q1 2016 (2.2 time increase).

Balance sheet

Total assets of Inter RAO – Electrogeneratsiya in Q1 2017 increased by 7.1% (RUB 19.0 bn) and amount to RUB 288.0 bn as of March 31, 2017.

Non-current assets in Q1 2017 increased by 4.9% (RUB 11.6 bn) and amount to RUB 248.0 bn. The increase is mainly attributed to changes in the investment portfolio (2.2 time increase by RUB 7.1 bn) as a result of liquidating a subsidiary, NVGRES HOLDING Limited and acquiring its assets during liquidation. An intangible asset of RUB 3.8 bn was also acquired in the reporting period as a result of purchasing rights of claim under CDAs (power unit 12 of the Verkhniy Tagil TPS) from the OGK-2 JSC.

Current assets in Q1 2017 increased by 22.6% (RUB 7.4 bn) and amount to RUB 40.0 bn. Changes in current assets are mainly attributed to increase in cash and cash equivalents by RUB 5.4 bn (2.5 times), increase in short-term accounts receivable by RUB 1.3 bn (+6.2%) mainly from sales of inventory items.

Liabilities of Inter RAO – Electrogeneratsiya increased by RUB 1.9 bn (+6.5%) and amount to RUB 31.1 bn as of March 31, 2017. This was caused by several factors: Accounts payable arisen from acquiring rights of claim under CDAs (RUB 3.8 bn) and paying off the loan obtained from Inter RAO for purchasing fixed assets (RUB 2.0 bn).

Nizhnevartovsk TPS' financial statements according to RAS

Indicator*

Q1 2017

Q1 2016

Change, %

Revenue

5.2

4.7

10.9

Production cost

3.6

3.5

3.1

Sales profit

1.4

1.0

42.3

Net profit

1.1

0.7

43.4


As of March 31, 

2017

As of December 31, 

2016

Change, %

Total assets

35.9

34.6

3.9

Equity

20.3

19.3

5.5

Loans and borrowings

11.5

11.2

2.5

Net debt**

-0,2

0.8

-

* In billion RUB unless specified otherwise.

The Net Debt value is calculated as follows: Short-term loans and borrowings plus Long-term loans and borrowings less Cash and cash equivalents less Short-term financial investments (cash in bank accounts)

Income statement

Revenue of the Nizhnevartovsk TPS in Q1 2017 increased by RUB 0.5 bn (+10.9%) as compared to Q1 2016 and amounts to RUB 5.2 bn. 

Revenue from electricity sales increased by 8.8% (RUB 0.3 bn) as compared to Q1 2016 and amounts to RUB 3.3 bn mainly due to increase in electricity sales by 7.0% (in Q1 2016, generation was lower as scheduled maintenance was carried out) and also due to increase in the actual price for electricity by 1.6%.

Revenue from capacity sales in Q1 2017 increased by 15.3% (RUB 0.2 bn) as compared to Q1 2016 and amounts to RUB 1.8 bn mainly due to increase in revenue from Capacity Delivery Agreements (CDA) as a result of increase in the "next day delivery market" factor.

Cost of goods sold increased by 3.1% (RUB 0.1 bn). The increase is attributed to a higher variable cost due to increase in production.

Gross profit in Q1 2017 increased by RUB 0.4 bn (+33.8%) as compared to Q1 2016 and amounts to RUB 1.6 bn.

Commercial and administrative costs in Q1 2017 decreased by 18.7% as compared to Q1 2016 and amount to RUB 0.17 bn. 

Sales profit in Q1 2017 increased by 42.3% (RUB 0.4 bn) and amounts to RUB 1.4 bn. 

Balance of other incomes and expenses (excluding the balance of interest payments and income from shares in other companies) amounts to RUB 0.03 bn as compared to RUB 0.07 bn in Q1 2016. 

As a result, net profit of the Nizhnevartovsk TPS for Q1 2017 increased by 43.4% as compared to Q1 2016 and amounts to RUB 1.1 bn. 

Balance sheet

Total assets of the Nizhnevartovsk TPS increased by 3.9% (RUB 1.3 bn) and amount to RUB 35.9 bn as of March 31, 2017.

Non-current assets increased by 3.2% (RUB 0.6 bn) and amount to RUB 20.7 bn. The increase was caused by purchasing enhanced parts for the 3rd power unit to upgrade the unit in September – October of 2017.

Current assets increased by 4.8% (RUB 0.7 bn) to RUB 15.2 bn mainly due to increase in cash and cash equivalents by 11.8% (RUB 1.2 bn) to RUB 11.7 bn as a result of placing more cash on deposit.

Total liabilities increased by 1.7% (RUB 0.3 bn) and amount to RUB 15.6 bn as of March 31, 2017. Changes were mainly caused by increase in interest payable for the loan obtained from the parent company.

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Inter RAO – Electrogeneratsiya is a 100% subsidiary of Inter RAO. Inter RAO – Electrogeneratsiya comprises 17 largest heat and power plants in Russia of the total installed power generation capacity of 22.043 GW (as of January 1, 2017, Inter RAO – Electrogeneratsiya is solely operated by Inter RAO – Upravleniye Electrogeneratsiyey). 

www.irao-generation.ru

* * *

Inter RAO Group is a diversified energy holding operating in the energy industry in Russia and abroad. Inter RAO is a leading energy export and import operator in Russia. The company actively strengthens its presence in the energy generation and sales segments and develops new businesses. Inter RAO's strategy is aimed at creating a global energy company, a major player on the global energy market, a leading Russian energy company in terms of efficiency. The total installed capacity of the Inter RAO Group companies amounts to 32.5 GW.

www.interrao.ru