Inter RAO – Electric Power Plants Published RAS Reporting for 2020


Inter RAO – Electric Power Plants has published financial statements for 2020 prepared in accordance with the Russian Accounting Standards (RAS).

Indicator* 12M  2020 12M  2019 Change, %

Revenue

192.0

210.7

-8.9

Prime cost

139.4

155.0

-10.0

Sales profit

50.0

53.1

-5.9

Net income

39.5

47.5

-16.8

  As of December 31,  2020  As of December 31,  2019  Change, %

Total assets

419.4

381.6

9.9

Shareholders' equity

375.2

343.6

9.2

Loans and borrowings

0.00

0.00

-

Net debt**

-160.2

-122.3

-

*Billion rubles unless indicated otherwise Relative deviation (%) 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 2020 are published on Inter RAO – Electric Power Plants website: http://www.irao-generation.ru/press/news/.

Profit and loss account

Revenue of Inter RAO – Electric Power Plants for 2020 was 192.0 billion rubles, which is 8.9% (18.7 billion rubles) lower than the same indicator for 2019.

Revenue from electricity sales decreased by 20.6% year-on-year (19.2 billion rubles) and amounted to 74.2 billion rubles. The decrease in revenue from electricity sales is due to the simultaneous effect of two factors: decrease in electricity sales by 18.3% (18.1 billion rubles) and a decrease in the weighted average price of electricity sales by 2.8% (1.2 billion rubles) compared to 2019.

The main factors behind the decline of the financial and economic indicators are the reduction of electricity consumption in the UES of Russia by 2.4% year-on-year (or 2.7% excluding the impact of an extra day in a leap year) and the growth in hydroelectric power generation due to the hydrological situation (high-water), as well as the lockdown imposed in the end of March to prevent the spread of COVID-19.

The impact of macroeconomic factors was partially offset by the positive effect amounting to 0.2 billion rubles, which resulted from the Company management decisions to optimize included generating equipment (SCIGE) at Sochinskaya TPP and Dzhubginskaya TPP.

Revenue from power sales in 2020 increased by 3.2% year-on-year (3.0 billion rubles) and amounted to 97.5 billion rubles primarily due to the increase in sales price (revenue growth of 3.7 billion rubles) resulting from implementing "PSA delta 10/15", which is to be received after 72 months of supplying power of Yuzhnouralskaya TPP-2, Cherepetskaya TPP and Dzhubginskaya TPP under the PSA (revenue growth of 4.7 billion rubles), with the decrease in power sales volume by 5.5% (0.7 billion rubles).

Also, the revenue increase is related to the power sales at the leased facilities of LLC Kaliningrad Generation due to the increase of the duration of work of the power units No. 3 and No. 4 at Pregolskaya TPP in 2020 (commissioned in February and April 2019), and commissioning of three blocks at Primorskaya TPP in 2020.

The relabeling of installed power generating equipment at units 2 of Mayakovskaya TPP and Talakhovskaya TPP conducted in August 2019 increased revenue from power sales by 0.1 billion in 2020.

Revenue from other sales for the reporting period was 16.6 billion rubles versus 18.9 billion rubles in 2019, mainly due to the decrease in revenue from selling of commodities and materials to outside organizations (1.9 billion rubles).

Cost of sales and services for 2020 decreased by 10.0% year-on-year (15.6 billion rubles) and amounted to 139.4 billion rubles mainly due to the reduction in fuel costs by reducing power generation (cost reduction of 15.3 billion rubles), with growing conventional fuel cost (cost increasing by 0.5 billion rubles) mainly due to annual indexation of gas prices.

Gross profit for 2020 decreased by 5.5% year-on-year (3.1 billion rubles) and amounted to 52.6 billion rubles.

Sales profit for 2020 decreased by 5.9% year-on-year (3.1 billion rubles) and amounted to 50.0 billion rubles.

Net profit for 2020 was 39.5 billion rubles, compared to 47.5 billion rubles for the same period of 2019.

Balance Sheet

Total assets of Inter RAO – Electric Power Plants for 2020 increased by 9.9% (37.8 billion rubles) and amounted to 419.4 billion rubles as of December 31, 2020.

Non-current assets for the reporting period slightly increased by 2.1 billion rubles (1.0%) and amounted to 223.5 billion rubles at the end of the reporting period.

Current assets increased by 22.2% (35.6 billion rubles) to 195.9 billion rubles in 2020, mainly due to cash and cash equivalents.

Liabilities of Inter RAO – Electric Power Plants as of December 31, 2020, increased by 6.2 billion rubles (16.4%) and amounted to 44.2 billion rubles.

Balance sheet of Nizhnevartovskaya TPP

Indicator* 12M  2020 12M  2019 Change, %

Revenue

17.8

19.2

-7.4

Prime cost

13.1

14.6

-10.3

Sales profit

4.1

4.0

2.3

Net income

3.7

3.3

11.0

  As of December 31,  2020  As of December 31,  2019  Change, %

Total assets

31.6

28.3

11.7

Shareholders' equity

28.2

24.5

15.0

Loans and borrowings

-

-

-

Net debt**

-7.1

-5.5

-

* Billion rubles unless indicated otherwise Relative deviation (%) 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

Profit and loss account

Revenue of JSC Nizhnevartovskaya TPP for 2020 decreased by 7.4% year-on-year and amounted to 17.8 billion rubles.

Revenue from electricity sales decreased by 19.9% year-on-year (2.4 billion rubles) and amounted to 9.8 billion rubles. The decrease was due to a 17.5% reduction in the volume of electricity sales (2.3 billion rubles) and a 2.9% decrease in the weighted average price of electricity sales (0.2 billion rubles), mainly due to an increase in the duration of downtime in the cold reserve in the current market conditions.

Revenue from power sales in the reporting period increased by 15.4%year-on-year (1.0 billion rubles) and amounted to 7.7 billion rubles, which is mainly due to the implementation of "PSA delta 10/15" in the power price of unit No. 3 from October 1, 2019.

Cost of sales in 2020 decreased by 10.3% year-on-year (1.5 billion rubles) and amounted to 13.1 billion rubles. The decrease is mainly due to a 18.5% reduction in gas costs due to a decrease in electricity generation volumes.

Gross profit for 2020 increased by 1.6% year-on-year (0.1 billion rubles) and amounted to 4.7 billion rubles.

Sales profit for 2020 amounted to 4.1 billion rubles, while the sales profit for 2019 was 4.0 billion rubles.

Net profit of JSC Nizhnevartovskaya TPP at the year-end 2020 amounted to 3.7 billion rubles. Net profit for 2019 was 3.3 billion rubles.

Balance Sheet

Total assets of JSC Nizhnevartovskaya TPP increased by 11.7% (3.3 billion rubles) and amounted to 31.6 billion rubles as of December 31, 2020.

Non-current assets increased by 7.2% year-on-year (1.4 billion rubles) and amounted to 20.8 billion rubles as of December 31, 2020.

Current assets increased by 21.3% (1.9 billion rubles) to 10.8 billion rubles, mainly due to financial investment and cash.

Total liabilities decreased by 9.9% (0.4 billion rubles) and amounted to 3.4 billion rubles as of December 31, 2020.