Energy without borders

Inter RAO — Electric Power Plants publishes RAS financial statements for the First Quarter of 2019

Inter RAO – Electric Power Plants published financial statements for the first quarter of 2019 prepared in accordance with the Russian Accounting Standards (RAS).

Indicator*

Q1 2019

Q1 2018

Change, %

Revenue

57,4

49,5

16,1

Prime cost

38,1

35,3

7,7

Sales profit

18,8

13,6

38,5

Net profit

16,5

10,9

51,3


As of March 31, 2019

As of December 31, 2018

Change, %

Total assets

359,0

339,5

5,7

Equity

322,2

305,6

5,4

Loans and borrowings

0,08

0,06

30,5

Net debt**

-96,6

-77,6

-

* in billion rubles, unless indicated otherwise. Relative deviation (in %) is calculated using accounting data (in thousand rubles) without regard to rounding

** Net debt is calculated as follows: Short-terms loans and borrowings plus Long-term loans and borrowings less Cash and cash equivalents less Cash on deposit accounts

Operating results of the Company for the first quarter of 2019 are published on Inter RAO – Electric Power Plants website: http://www.irao-generation.ru/press/news/

Income statement

Revenue of Inter RAO – Electric Power Plants for the first quarter of 2019 was 57.4 billion rubles, which is 16.1% (8.0 billion rubles) higher than the same indicator for the first quarter of 2018.

Revenue from electricity sales increased by 13.5% (3.0 billion rubles) as compared to the corresponding period of 2018 and amounted to 24.9 billion rubles. Changes in the revenue from electricity sales are caused by the increase of the average weighted selling price of electricity by 10.4% (increase in revenues by 1.9 billion rubles) and 2.8% increase in the electricity sales volumes (600 kWh) as compared to the corresponding period of 2018 (revenue increased by 1.0 billion rubles).

Revenue from capacity sales in Q1 2019 increased by 19.4% (4.3 billion rubles) as compared to the same period of the previous year and amounted to 26.5 billion rubles. One of the main reasons for the increase was 2.0 billion rubles (15.1%) increase in CSA capacity sales, reaching 15.3 billion rubles, which is mainly attributed to higher volumes of delivered power due to increased equipment preparedness levels (increase in revenues by 0.5 billion rubles)

Price of capacity sales from CSA facilities resulted in the growth of revenue by 1.5 billion rubles and was caused by the following multidirectional factors:

  • using of CSA Delta 10/15 payment that should be received 72 months after CSA capacity supply, which had an impact on calculation of the capacity price at Urengoyskaya SDPP, Yuzhnouralskaya SDPP-2 and Cherepetskaya SDPP (increase in revenues by 1.5 billion rubles);
  • increase in the DAM factor that determines the share of investment compensation in the capacity market, which influenced the capacity price of power unit №1 of Yuzhnouralskaya SDPP-2 and CCP of Urengoyskaya SDPP (revenue growth by 0.3 billion rubles);
  • decrease in price for sales of capacity from other CSA facilities (decrease in revenue by 0.3 billion rubles) due to the effect of the general decline in the rate of yield, taken into account in the price of the capacity of the CSA facilities 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.

Moreover, the revenue growth was influenced by the sales of capacity from leased facilities of LLC Kaliningrad Generation supplying the capacity in the Kaliningrad Oblast (power units of Mayakovskaya, Talakhovskaya and Pregolskaya TPPs).

Revenue from other sales for the reporting period was 6.1 billion rubles versus 5.3 billion rubles in the previous period - mainly due to the increase in revenue from selling of commodities and materials to outside organizations (by 0.8 billion rubles).

Prime cost of products and services sold in the first quarter of 2019 increased by 7.7% (2.7 billion rubles) as compared to the corresponding period of the previous year and amounted to 38.1 billion rubles.

This change reflects the influence of the following partially offsetting key factors:

  • Fuel costs growth was driven by the increased price of fuel equivalent used for power generation (costs have grown by 1.2 billion rubles), as well as the increased output at Kaliningrad Generation LLC facilities and power plants of Inter RAO - Electric Power Plants, which was partially offset by optimized composition of the generating equipment in operation at the power plants of JSC Inter RAO - Electric Power Plants and the reduction of specific reference fuel consumption for the power generation.
  • Growth of costs connected with leasing of property at Mayakovskaya, Talakhovskaya and Pregolskaya TPPs;
  • Increase of expenses for purchase of commodities and materials for subsequent sales.
  • The accrued property tax was reduced due to the introduction of changes into the Tax Code of the Russian Federation effective January 1, 2019.

Gross profit for the first quarter of 2019 was 19.4 billion rubles, which is 37.2 % (or 5.3 billion rubles) higher than the same indicator for the first quarter of 2018.

Sales profit for the first quarter of 2019 increased to 18.8 billion rubles as compared to the corresponding period of the previous year (growth by 38.5% or 5.2 billion rubles).

Balance of other income/expenses at the end of the reporting period was 1.8 billion rubles versus 0.3 billion rubles in the corresponding period of the previous year. The balance change is driven by the growth of interest receivable, mainly due to the increase of the Company's deposit portfolio, and as a result of the measures aimed at settling the accounts receivable (recovery of the provision for doubtful debts).

Net profit the first quarter of 2019 was 16.5 billion rubles versus 10.9 billion rubles for the same period of 2018.

Balance sheet

Total assets of Inter RAO – Electric Power Plants for the first quarter of 2019 increased by 5.7% (19.5 billion rubles) and amounted to 359.0 billion rubles as of March 31, 2019.

Non-current assets for the reporting period decreased by 5.2 billion rubles (2.3%) and amounted to 222.4 billion rubles at the end of the reporting period, due to the accrual of depreciation, reduction of the value of construction in progress, and the conversion of the long-term indebtedness into short-term as the due dates approach.

Current assets for the first quarter of 2019 increased by 22.1% (24.7 billion rubles) and amounted to 136.7 billion rubles. The growth of current assets is mainly connected with the cumulative increase in financial investments and cash equivalents by 19.1 billion rubles (24.5%) primarily caused by the completion of a program for new construction of CSA facilities.

Liabilities of Inter RAO – Electric Power Plants as of March 31, 2019 increased by 3.0 billion rubles (8.8%) and amounted to 36.9 billion rubles. The changes of this indicator were mostly driven by the VAT and profit tax accrued, in connection with the increase of the tax base due to revenue and profit growth.

Balance sheet of JSC Nizhnevartovskaya TPP

Indicator*

Q1 2019

Q1 2018

Change, %

Revenue

4,5

5,0

-9,4

Prime cost

3,4

3,8

-11,6

Sales profit

1,0

1,1

-2,4

Net profit

0,9

1,0

-15,4


As of March 31, 2019

As of December 31, 2018

Change, %

Total assets

25,2

24,2

3,8

Equity

21,8

20,9

4,2

Loans and borrowings

-

-

-

Net debt**

-2,7

-1,6

-

* in billion rubles, unless indicated otherwise. Relative deviation (in %) is calculated using accounting data (in thousand rubles) without regard to rounding

** Net debt is calculated as follows: Short-terms loans and borrowings plus Long-term loans and borrowings less Cash and cash equivalents less Cash on deposit accounts

Income statement

Revenue of JSC Nizhnevartovskaya TPP for the first quarter of 2019 decreased by 9.4 % as compared to the same period of 2018 and amounted to 4.5 billion rubles.

Revenue from electricity sales amounted to 2.9 billion rubles and decreased by 8.6% as compared to 2018. Decrease in the revenue from electricity sales was caused by the decrease of generation due to the equipment maintenance with the parallel increase of the cold reserve duration.

Revenue from capacity sales in the reporting period decreased by 11.0% as compared to the same period of the previous year and amounted to 1.5 billion rubles. Dynamics of this indicator is mainly caused by the decrease in price for sales of capacity due maintenance works.

Prime cost of products sold decreased by 11.6% (0.4 billion rubles). This decrease is mainly connected with lower gas costs (by 16.7%) as a result of decrease in electricity production.

Gross profit for the first quarter of 2019 decreased by 2.4% (0.03 billion rubles) as compared to the same period of the previous year and amounted to 1.2 billion rubles.

Sales profit at the end of the reporting period amounted to 1.0 billion rubles, while the sales profit for the same period of the previous year was 1.1 billion rubles.

Net profit of JSC Nizhnevartovskaya TPP at the end of the reporting period amounted to 0.9 billion rubles. Net profit for the same period of the previous year was 1.0 billion rubles.

Balance sheet

Total assets of JSC Nizhnevartovskaya TPP increased by 3.8% (0.9 billion rubles) and amounted to 25.2 billion rubles as of March 31, 2019.

Non-current assets decreased by 1.4% (0.3 billion rubles) and amounted to 19.3 billion rubles. This change was mainly caused by the decrease of residual value of fixed assets due to accrual of depreciation.

Current assets increased by 25.6% (1.2 billion rubles), to 5.9 billion rubles, mainly due to the increase of cash and cash equivalents.

Total liabilities as of March 31, 2019 increased by 1.2% (0.04 billion) and amounted to 3.3 billion rubles.