Energy without borders

JSC Inter RAO – Electric Power Plants published accounting statements according to Russian Accounting Standards for Q1 2018

JSC Inter RAO – Electric Power Plants published accounts for Q1 2018 in accordance with the Russian Accounting Standards (RAS).

Indicator*

Q1 2018

Q1 2017

Variation, %

Revenue

49.5

47.0

5.3

Self-cost

35.3

33.9

4.4

Sales profit

13.6

12.6

7.7

Net profit

10.9

17.1

-36.1


As of March 31,

2018

As of December 31,

2017

Variation, %

Total assets

313.2

310.7

0.8

Equity capital

280.7

269.8

4.0

Loans and borrowings

-

-

-

Net debt**

-44.5

-43.9

-

*in billions of rubles, unless otherwise stated. Relative deviation (in %) calculated on the basis of data of the accounting reports (in thousands of rubles) without regard to rounding

**the "Net debt" indicator is calculated as follows: "Short-term loans and borrowings" plus "Long-term loans and borrowings" minus "Cash and cash equivalents" minus "Cash on deposit accounts"

Operating performance of the company for Q1 2018 is published on the Internet website of JSC Inter RAO – Electric Power Plants: http://www.irao-generation.ru/press/news/

Profit and loss statement

The revenue of JSC Inter RAO – Electric Power Plants for Q1 2018 totaled 49.5 billion rubles, which is 5.3% (or 2.5 billion rubles) higher than the same indicator for Q1 2017.

The revenue from sales of electricity decreased by 5.0% (or 1.2 billion rubles) compared to the same period of 2017 and amounted to 22.0 billion rubles, which is mainly due to:

  • decrease in the volume of electricity sales by 1.8% (or 390.9 million kWh), due to the decrease in electricity output by the plants of
    Inter RAO – Electric Power Plants by 2.8% as a result of optimization of the scope of available generating equipment under the conditions of increasing the load of cheap generation by HPP and efficient facilities of the Capacity Supply Agreement.
  • decrease in the average weighted price for electricity sales by 3.3% under the conditions of excessive cheap supply in the Wholesale Electric Energy Market.

The revenue from the sale of capacity in Q1 2018 increased by 24.6% (or 4.4 billion rubles) and amounted to 22.2 billion rubles in comparison with the same period of the previous year, mainly due to the increase in revenue in the Capacity Supply Agreement sector (2.5 billion rubles) and the capacity sales of the leased facilities of LLC Kaliningrad Generation (1.7 billion rubles).

Significant increase in revenue from the sale of capacity under the Capacity Supply Agreement for 2.5 billion rubles (or 23.2%), to the level of 13.3 billion rubles compared
to Q1 2017, is due to an increase in the volume of supplied capacity in connection with the commissioning of new generating capacities in the summer of 2017: the fourth power unit of Perm HPP (the effect on revenue growth amounted to 1.7 billion rubles) and the twelfth power unit of Verkhnetagilskaya HPP (the effect on revenue growth was 0.8 billion rubles).

In addition, the remarking of the installed capacity of the generating equipment of the Gusinoozerskaya HPP and Perm HPP as a result of attestation carried out in 2017 increased revenues by 0.1 billion rubles as compared to Q1 2018.

The effect of the sale price of the capacity of the Capacity Supply Agreement facilities on revenue growth was 0.3 billion rubles, and was caused by the following factors:

  • usage of the "Capacity Supply Agreement 10/15 Delta" payment becoming due after 72 months of power delivery under the Capacity Supply Agreement, which was reflected in the price calculation for the capacity of Gusinoozerskaya HPP, Kharanor HPP, and Ivanovskiye CPP (revenue growth of 1.0 billion rubles).
  • increase the value of the Krsv factor (day-ahead market) defining the share of compensation of investment in the power market having affected the capacity price of Ivanovskiye CPP (revenue growth by 0.1 billion rubles);
  • decrease in the sale price of the capacity of other Capacity Supply Agreement facilities (decrease in revenues by 0.8 billion rubles) due to the impact of the general decline in the rate of return, taken into account in the price of the capacity of the facilities under Capacity Supply Agreements in accordance with the regulatory base of the wholesale market, following the decline in the yield of long-term government obligations used for the calculation of capacity prices.

In addition, the revenue growth was influenced by the capacity sales of the leased facilities of LLC Kaliningrad Generation (1.7 billion rubles), the Mayakovskaya TPP and Talakhovskaya TPP power units that were put into operation, supplying power in the Kaliningrad region (built in accordance with the Decree of the Government of the Russian Federation No. 2098-r dated October 20, 2015).

The revenue from other sales for the reported period amounted to 3.8 billion rubles against 4.8 billion rubles in the previous period, mainly due to the revenue decrease from the sale of inventories to third parties (by 1.1 billion rubles).

The self-cost of the sold products and provided services as of Q1 2018 increased by 4.4% compared to the same period of the previous year (or 1.5 billion rubles) and amounted to 35.3 billion rubles.

Self-cost fluctuation was affected by oppositely directed influence of the following key factors:

  • The increase in depreciation charges by 0.6 billion rubles (or 18.8%) in connection with the commissioning of the twelfth power unit of Verkhnetagilskaya HPP in May 2017 and the fourth power unit of Perm HPP in July 2017;
  • Increase in costs associated with leasing property of Mayakovskaya TPP and Talakhovskaya TPP (0.6 billion rubles);
  • Increase in costs for plants staff in connection with the operation of the installed units of Verkhnetagilskaya HPP and Perm HPP and the construction of new units by Kaliningrad Generation (0.5 billion rubles);
  • Increase in repair costs by 0.4 billion rubles (or 2.3 times) mainly in connection with the ongoing repair of the gas generator (GTP-2) at the Dzhubginskaya TPP;
  • Reduction of fuel costs by 0.5 billion rubles due to:
    • reduction of electricity output and heat delivery by the plants of Inter RAO – Electric Power Plants (reduction of fuel costs by 1.4 billion rubles);
    • growth in the price of reference fuel (increase in costs by 0.9 billion rubles)
  • Reduction of the cost of acquisition of inventory items for further resale by 1.1 billion rubles (or 26.3%).

The gross profit for Q1 2018 amounted to 14.1 billion rubles, which is 7.6% (or 1.0 billion rubles) higher than the same indicator for Q1 2017.

Profit from sales for Q1 2018 increased compared to the same period of the previous year to 13.6 billion rubles (an increase by 7.7% or 1.0 billion rubles).

The balance of other revenues/expenses as a result of the reporting period amounted to -0.4 billion rubles against 6.7 billion rubles for Q1 2017, which is mainly due to the income reflected in the liquidation of the subsidiary NVGRES HOLDING Limited in Q1 2017.

The net profit for Q1 2018 amounted to 10.9 billion rubles against 17.1 billion rubles for the same period in 2017.

Balance Sheet

The total assets of JSC Inter RAO – Electric Power Plants as of Q1 2018 increased by 0.8% (or 2.4 billion rubles) and, as of March 31, 2018, amounted to 313.2 billion rubles.

The non-current assets as of the reporting period changed insignificantly (decrease by 0.6%) and amounted to 235.0 billion rubles at the end of the reporting period.

The current assets in Q1 2018 increased by 5.3% (or 3.9 billion rubles) and amounted to 78.2 billion rubles, which is mainly due to the growth of short-term receivables by 1.8 billion rubles and growth in inventories by 1.3 billion rubles in connection with the acquisition of materials for scheduled repair and maintenance of equipment in Q2 2018.

The liabilities of JSC Inter RAO – Electric Power Plants as of March 31, 2018, decreased by 8.5 billion rubles (or 20.7%) and amounted to 32.4 billion rubles. The dynamics of the indicator is due mainly to the decrease in accounts payable on dividends in the amount of 7.5 billion rubles.

Accounting statements of Nizhnevartovsk HPP JSC as per the RAS

Indicator*

Q1 2018

Q1 2017

Variation, %

Revenue

5.0

5.2

-3.4

Self-cost

3.8

3.6

4.5

Sales profit

1.1

1.4

-23.6

Net profit

1.0

1.1

-2.5


As of March 31,

2018

As of December 31,

2017

Variation, %

Total assets

26.8

26.7

0.5

Equity capital

23.6

22.6

4.6

Loans and borrowings

-

-

-

Net debt**

-3.6

-3.1

-

*in billions of rubles, unless otherwise stated. Relative deviation (in %) calculated on the basis of data of the accounting reports (in thousands of rubles) without regard to rounding

**the "Net debt" indicator is calculated as follows: "Short-term loans and borrowings" plus "Long-term loans and borrowings" minus "Cash and cash equivalents" minus "Cash on deposit accounts"

Profit and loss statement

Revenue of Nizhnevartovsk HPP JSC as of Q1 2018 decreased by 0.2 billion rubles (or 3.4%) compared to the same period in 2017 and amounted to 5.0 billion rubles.

Revenue from electricity sales in comparison with Q1 2017 decreased by 3.3% (or 0.1 billion rubles), mainly due to the decrease in the average weighted price of electricity sales at the Wholesale Electric Energy Market, and amounted to 3.2 billion rubles.

The revenue from capacity sales in the reporting period decreased by 4.4% (or 0.1 billion rubles) as compared to the same period of the previous year and amounted to 1.7 billion rubles. The dynamics of the indicator is mainly due to the decrease in the price of capacity sales due to the influence of the general factor of rate of return reduction included in the power price of the facilities under Capacity Supply Agreements in accordance with the regulatory base of the wholesale market, following the decline in the yield of long-term government obligations used for the calculation of capacity prices.

The self-cost of the sold products increased by 4.5% (or 0.2 billion rubles). The increase is mainly due to the increase in costs for repairs and increase in gas costs due to the indexation of fuel prices by 3.8%.

The gross profit for Q1 2018 compared to the same period of the previous year decreased by 0.3 billion rubles and amounted to 1.2 billion rubles.

The sales profit for Q1 2018 decreased by 23.6% (or 0.3 billion rubles) and amounted to 1.1 billion rubles.

The balance of the other expenses and revenues amounted to 0.2 billion rubles compared to 0.3 billion rubles in Q1 2017. The change in the indicator is mainly due to the recovery of the provision for doubtful debts in connection with the ongoing activities to manage accounts receivable.

The net profit of Nizhnevartovsk HPP JSC according to the results of the reporting period amounted to 1.0 billion rubles. For the same period of the previous year, the net profit amounted to 1.1 billion rubles.

Balance Sheet

The total assets of Nizhnevartovsk HPP increased by 0.5% (or 0.1 billion rubles) and as of March 31, 2018, amounted to 26.8 billion rubles.

The non-current assets decreased by 1.2% (or 0.2 billion rubles) amounting to 20.2 billion rubles. The main reason for the decrease in non-current assets was the write-off of advanced spare parts purchased for the third power unit in order to retrofit it.

The current assets increased by 6.1% (or 0.4 billion rubles), to 6.7 billion rubles, mainly due to increase in funds and their equivalents.

The total liabilities as of March 31, 2018, decreased by 21.8% (or 0.9 billion rubles) and amounted to 3.2 billion rubles, mainly due to the reduction of short-term payables to suppliers and contractors due to the completion retrofit of the third power unit in Q4 2017.