Inter RAO – Electric Power Plants Announces RAS Financial Results for the First Six Months of 2020

JSC Inter RAO – Electric Power Plants announces financial results for the first six months of 2020 prepared according to the Russian Accounting Standards (RAS).

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

**'Net debt' index is calculated as follows: 'Short-term 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 H1 2020 are published on Inter RAO – Electric Power Plants website: http://www.irao-generation.ru/press/news/.

Income statement

Revenue of JSC Inter RAO – Electric Power Plants for the first half of 2020 amounted to 89.7 billion rubles, which is 16.6% (17.9 billion rubles) lower than in the same period of 2019.

Revenue from electricity sales decreased by 33.0% (15.9 billion rubles) as compared to the same period of 2019 and amounted to 32.4 billion rubles. Decrease in electricity sales revenue is primarily attributed to a conjunction of two factor: a decline in electricity sales volume by 27.1% (14.0 billion rubles) and weighted average price of electricity sales by 8.0% (1.9 billion rubles) in comparison with H1 2019. Major factors contributing to the decrease in company’s financial and economic indicators are reduced power consumption in the UES of Russia by 2.8% in comparison with the corresponding period of the previous year (3.4% without taking into account the impact of an additional day in the leap year), as well as increased electricity output by hydro power plants due to high water, and restrictions imposed in late March to halt COVID-19 spread.

Revenue from capacity sales in H1 2020 increased by 2.1% (1.0 billion rubles) as compared to the same period of the previous year and amounted to 47.7 billion rubles. Decrease in capacity sales volumes by 3.2% (1.5 billion rubles) was offset by an increase of a sale price (revenue growth by 2.5 billion rubles) mainly due to the use of "CSA 10/15 Delta" payment becoming due after 72 months of power delivery under the Capacity Supply Agreement by Yuzhnouralskaya SDPP-2, Cherepetskaya SDPP and Dzhubginskaya TPP

Moreover, the revenue growth was influenced by the sales of capacity from leased facilities of LLC Kaliningrad Generation supplying the capacity in the Kaliningrad region (power units 3 and 4 of Pregolskaya TPP were commissioned in February 2019 and April 2019 respectively and have been in operation since the beginning of 2020).

Revenue from other sales for the reporting period amounted to 7.5 billion rubles against 10.4 billion rubles in H1 2019; mainly due to the decrease in revenue from selling of commodities and materials to outside organizations (by 2.8 billion rubles).

Production cost of the sold products and provided services in H1 2020 decreased by 18.1% (13.9 billion rubles) as compared to the same period of the previous year and amounted to 62.9 billion rubles, mainly owing to reduced fuel costs resulted from decreased power generation (reduction in expenditure by 11.8 billion rubles), which offsets rising price of specific fuel due to annual gas price indexation (costs increase by 0.8 billion rubles).

Gross profit in H1 2020 amounted to 26.8 billion rubles, which is 12.9% (4.0 billion rubles) lower than in the same period of 2019.

Sales profit in H1 2020 decreased by 14.4% (4.3 billion rubles) in comparison with the corresponding period of the previous year and amounted to 25.4 billion rubles.

Net profit for H1 2020 amounted to 22.1 billion rubles against 26.7 billion rubles in the same period of 2019.

Balance sheet

Total assets of JSC Inter RAO – Electric Power Plants in H1 2020 increased by 4.3% (16.4 billion rubles) and amounted to 398.1 billion rubles as of June 30, 2020.

Non-current assets for the reporting period decreased by 1.2 billion rubles (0.5%) and amounted to 220.1 billion rubles at the end of the reporting period.

Current assets in H1 2020 increased by 11.0% (17.6 billion rubles) and amounted to 178.0 billion rubles, mainly due to an increase in financial investments and cash equivalents.

Liabilities of JSC Inter RAO – Electric Power Plants as of June 30, 2020 decreased by 5.6 billion rubles (14.6%) and amounted to 32.4 billion rubles.

RAS Balance sheet of JSC Nizhnevartovskaya SDPP

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

**'Net debt' index is calculated as follows: 'Short-term 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 SDPP for the first half of 2020 increased by 3.2% (0.3 billion rubles) as compared to the same period of 2019 and amounted to 9.2 billion rubles.

Revenue from electricity sales decreased by 10.6% (0.6 billion rubles) compared to the corresponding period of 2019 and amounted to 5.2 billion rubles. Decrease in electricity sales revenue is primarily attributed to a decline in electricity sales volume by 7.1% (0.4 billion rubles) and weighted average price of electricity sales by 3.7% (0.2 billion rubles) as a result of unfavorable market conditions

Revenue from capacity sales in the reporting period increased by 31.1% (0.9 billion rubles) as compared to the same period of the previous year and amounted to 3.9 billion rubles, mainly due to the use of "CSA 10/15 Delta" payment since October 1, 2019, as well as an increase in capacity sales volumes due to the absence of emergency shutdowns.

Production cost of the sold products in H1 2020 decreased by 4.3% (0.3 billion rubles) compared to H1 2019, mainly due to a 4.7% decrease in gas costs resulting from a decrease in electricity generation volumes.

Gross profit in H1 2020 increased by 26,7% (0.6 billion rubles) in comparison with the corresponding period of the previous year and amounted to 2,7 billion rubles.

Sales profit in H1 2020 amounted to 2.4 billion rubles, while the sales profit in the same period of the previous year was 1.9 billion rubles.

Net profit of JSC Nizhnevartovskaya SDPP in the first half of 2020 amounted to 2.1 billion rubles. Net profit for the same period of the previous year was 2.0 billion rubles.

Balance Sheet

Total assets of JSC Nizhnevartovskaya SDPP increased by 6.6% (1.9 billion rubles) and amounted to 30.4 billion rubles as of June 30, 2020.

Non-current assets for the reporting period increased by 9.2% (1.8 billion rubles) and amounted to 21.4 billion rubles as of June 30, 2020.

Current assets for the reporting period increased by 0.8% (0.1 billion rubles) to 9.0 billion rubles, mainly due to an increase in financial investments.

Total liabilities decreased by 4.6% (0.2 billion rubles) and amounted to 3.8 billion rubles as of June 30, 2020.