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


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

Indicator *

9 months of 2020

9 months of 2019

Change, %

Revenue

139.3

156.8

-11.2

Production cost

103.0

115.3

-10.7

Sales profit

34.2

39.7

-13.9

Net profit

28.1

36.4

-22.9

As of September 30, 2020

As of December 31, 2019

Change, %

Total assets

406.2

381.6

6.4

Equity

371.6

343.6

8.2

Loans and borrowings

0.00

0.00

-

Net debt **

-146.6

-122.3

-

* - 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 the nine months of 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 nine months of 2020 amounted to 139.3 billion rubles, which is 11.2% (17.5 billion rubles) lower than in the same period of 2019.

Revenue from electricity sales decreased by 24.7% (17.7 billion rubles) as compared to the same period of 2019 and amounted to 53.8 billion rubles. Decrease in electricity sales revenue is primarily attributed to a conjunction of two factors: a decline in electricity sales volume by 21.3% (16.3 billion rubles) and weighted average price of electricity sales by 4.4% (1.3 billion rubles) in comparison with 9M of 2019.

Major factors contributing to the decrease in company’s financial and economic indicators are reduced power consumption in the UES of Russia by 2.9% in comparison with the corresponding period of the previous year (3.2% 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. At the same time, in the third quarter of 2020, electricity consumption in UES of Russia was partially restored (the reduction in consumption in the third quarter of 2020 was 3% compared to the third quarter of 2019, against the reduction in consumption in the second quarter of 2020 by 4.7% compared to the same period in 2019), and electricity output of HPPs was 9% lower than in the second quarter, which had a positive impact on the improvement of indicators in the third quarter compared to the second quarter of 2020.

The impact of macroeconomic factors was partially offset by the positive effect amounting to 0.1 billion rubles, which resulted from the Company management decisions to optimize included generating equipment (SCIGE) at Sochinskaya TPP and Dzhubginskaya TPP.

Revenue from capacity sales for the 9 months 2020 increased by 3.9% (2.7 billion rubles) as compared to the same period of the previous year and amounted to 70.3 billion rubles. Decrease in capacity sales volumes by 4.4% (1.3 billion rubles) was offset by an increase of a sale price (revenue growth by 4.0 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 (revenue growth by 3.6 billion rubles).

Moreover, the revenue growth was influenced by the sales of capacity from leased facilities of LLC Kaliningrad Generation resulted from an increase in operation time of power units No. 3 and No. 4 at Pregolskaya TPP put into service in February and April of 2019, and due to commissioning of power units No. 1 and No. 2 at Primorskaya TPP in August and September of 2020.

At the same time relabeling of installed capacity of power units No. 2 at the Pregolskaya and Talakhovskaya TPPs in August 2020 increased revenue from capacity sales for the nine months of 2020 by 0.1 billion rubles.

Revenue from other sales for the reporting period amounted to 12.7 billion rubles against 15.4 billion rubles in 9M of 2019; mainly due to the decrease in revenue from selling of commodities and materials to outside organizations (by 2.1 billion rubles).

Production cost of the sold products and provided services in 9M of 2020 decreased by 10.7% (12.4 billion rubles) as compared to the same period of the previous year and amounted to 103.0 billion rubles, mainly owing to reduced fuel costs resulted from decreased power generation (reduction in expenditure by 13.8 billion rubles), which offsets rising price of specific fuel mainly due to annual gas price indexation (costs increase by 0.6 billion rubles).

Gross profit in 9M of 2020 amounted to 36.3 billion rubles, which is 12.4% (5.1 billion rubles) lower than in the same period of 2019.

Sales profit in 9M of 2020 decreased by 13.9% (5.5 billion rubles) in comparison with the corresponding period of the previous year and amounted to 34.2 billion rubles.

Net profit for 9M of 2020 amounted to 28.1 billion rubles against 36.4 billion rubles in the same period of 2019.

Balance sheet

Total assets of JSC Inter RAO – Electric Power Plants in 9M of 2020 increased by 6.4% (24.6 billion rubles) and amounted to 406.2 billion rubles as of September 30, 2020.

Non-current assets for the reporting period increased by 2.4 billion rubles (1.1%) and amounted to 223.7 billion rubles at the end of the reporting period.

Current assets in 9M of 2020 increased by 13.9% (22.2 billion rubles) and amounted to 182.5 billion rubles, mainly due to an increase in financial investments and cash equivalents.

Liabilities of JSC Inter RAO – Electric Power Plants as of September 30, 2020 decreased by 3.4 billion rubles (9.0%) and amounted to 34.6 billion rubles.

RAS Balance sheet of JSC Nizhnevartovskaya SDPP

Indicator *

9 months of 2020

9 months of 2019

Change, %

Revenue

13.1

13.6

-3.5

Production cost

9.5

10.5

-9.9

Sales profit

3.2

2.6

22.4

Net Profit

2.8

2.6

7.4

As of September 30, 2020

As of December 31, 2019

Change, %

Total assets

31.2

28.5

9.2

Equity

27.3

24.5

11.4

Loans and borrowings

-

-

-

Net debt**

-6.5

-5.5

-

* - 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 nine months of 2020 decreased by 3.5% (0.5 billion rubles) as compared to the same period of 2019 and amounted to 13.1 billion rubles. .

Revenue from electricity sales decreased by 18.8% (1.7 billion rubles) compared to the corresponding period of 2019 and amounted to 7.3 billion rubles. Decrease in electricity sales revenue is primarily attributed to a decline in electricity sales volume by 15.1% (1.4 billion rubles) and weighted average price of electricity sales by 4.2% (0.2 billion rubles) as a result of unfavorable market conditions.

Revenue from capacity sales in the reporting period increased by 27.7% (1.2 billion rubles) as compared to the same period of the previous year and amounted to 5.7 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 decrease in the number of emergency shutdowns.

Production cost of the sold products in 9M of 2020 decreased by 9.9% (1.0 billion rubles) compared to 9M of 2019, mainly due to a 15.7% decrease in gas costs resulting from a decrease in electricity generation volumes.

Gross profit in 9M of 2020 increased by 18,8% (0.6 billion rubles) in comparison with the corresponding period of the previous year and amounted to 3,6 billion rubles.

Sales profit for the nine months of 2020 amounted to 3.2 billion rubles, while the sales profit in the same period of the previous year was 2.6 billion rubles.

Net profit of JSC Nizhnevartovskaya SDPP for the nine months of 2020 amounted to 2.8 billion rubles. Net profit for the same period of the previous year was 2.6 billion rubles.

Balance Sheet

Total assets of JSC Nizhnevartovskaya SDPP increased by 9.2% (2.6 billion rubles) and amounted to 31.2 billion rubles as of September 30, 2020.

Non-current assets for the reporting period increased by 8.5% (1.7 billion rubles) and amounted to 21.3 billion rubles as of September 30, 2020.

Current assets for the reporting period increased by 10.8% (1.0 billion rubles) to 9.9 billion rubles, mainly due to an increase in financial investments.

Total liabilities decreased by 4.1% (0.2 billion rubles) and amounted to 3.9 billion rubles as of September 30, 2020.