Inter RAO – Electric Power Plants Announces RAS Financial Results for the First Quarter of 2021


JSC Inter RAO – Electric Power Plants announces financial results for the first quarter of 2021 prepared according to the Russian Accounting Standards (RAS).

Indicator * Q1 2021 Q1 2020 Change, %

Revenue

58.8

49.8

18.1

Production cost

35.7

31.3

13.8

Sales profit

22.4

17.8

26.2

Net profit

17.2

15.3

12.5

As of March 31, 2021 As of March 31, 2020 Change, %

Total assets

506.7

495.8

2.2

Equity

388.0

370.8

4.6

Loans and borrowings

84.9

84.2

0.8

Net debt**

-89.6

-76.1

17.8

* In RUB billion, unless otherwise stated. Relative deviation (%) is calculated using accounting data (in thousand rubles) without regard to rounding. A retrospective recalculation was carried out taking into account the decision to apply in 2021 the Russian FAS 25/2018 "Accounting for Leases".

** '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 Q1 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 quarter of 2021 amounted to 58.8 billion rubles, which is 18.1% (9.0 billion rubles) higher than in the same period of 2020.

Revenue from electricity sales increased by 32.9% (6.0 billion rubles) as compared to the same period of 2020 and amounted to 24.2 billion rubles. The increase in electricity sales revenue is primarily attributed to a growth of electricity sales volume by 20.6% (4.8 billion rubles) and weighted average price of electricity sales by 10.1% (1.2 billion rubles) in comparison with Q1 2020 in the context of an increase in electricity consumption in the Unified Energy System of Russia by 3.9% compared to the same period last year (5.1% - excluding the effect of an additional day in a leap year 2020) and a decrease in electricity generation by HPPs by 4.7%.

Revenue from capacity sales in Q1 2021 increased by 14.2% (3.8 billion rubles) as compared to the same period of the previous year and amounted to 30.5 billion rubles.

Increase in revenue from capacity sales is related mainly to the growth of selling price for PSA facilities from 1 January 2021, due to specifying DAM share for unit 4 of Permskaya TPP and unit 12 of Verkhnetagilskaya TPP determining the share of offsetting investments on the capacity market based on the forecast for target profit from electricity sales, estimated from 1 January of the year following the year when the third period of PSA supply based on the methodology of the Ministry of Energy ended: DAM share growth from 0.71 to 0.90, also using "ΔPSA 10/15". Besides, revenue growth was impacted by capacity sales at leased facilities of Kaliningrad Generation LLC.

At the same time, total revenue from selling the existing generation facilities (less PSA facilities and Kaliningrad Generation LLC) decreased, which was related mainly to the reduction in the volume of actually supplied capacity due to decommissioning of the remaining generating equipment at Kashirskaya TPP (330 MW) from 1 January 2021, and a failure to pay for capacity during upgrade (cogeneration modernization projects (KOMMod)) of units 1 and 3 of Gusinoozerskaya TPP (with the total capacity of 370 MW), and unit 4 of Kostromskaya TPP (300 MW).

Revenue from other sales for the reporting period amounted to 2.4 billion rubles against 3.4 billion rubles in Q1 2020; mainly due to the decrease in revenue from selling of commodities and materials to outside organizations (by 0.8 billion rubles).

Production cost of the sold products and provided services in Q1 2021 increased by 13.8% (4.3 billion rubles) as compared to the same period of the previous year and amounted to 35.7 billion rubles, mainly owing to increased fuel costs resulted from increased power generation (increase in expenditure by 4.0 billion rubles) and the price of equivalent fuel (an increase in costs by 0.4 billion rubles), mainly due to the annual indexation of the gas price.

Gross profit in Q1 2021 amounted to 23.1 billion rubles, which is 25.5% (4.7 billion rubles) higher than in the same period of 2020.

Sales profit за in Q1 2021 increased by 26.2% (4.7 billion rubles) in comparison with the corresponding period of the previous year and amounted to 22.4 billion rubles.

The balance of other income and expenses in the first quarter of 2021 was negative and amounted to 0.8 billion rubles against a positive value of 0.9 billion rubles in the first quarter of 2020. The change is mainly due to the effect of the balance on interest receivable and payable, taking into account the application of the Russian FAS 25/2018 standard.

Net profit for Q1 2021 amounted to 17.2 billion rubles against 16.5 billion rubles in the same period of 2020.

Balance sheet

Total assets of JSC Inter RAO – Electric Power Plants in Q1 2021 increased by 2.2% (10.9 billion rubles) and amounted to 506.7 billion rubles as of March 31, 2021.

Non-current assets for the reporting period decreased insignificantly by 2.9 billion rubles (1.0 %) and amounted to 302.5 billion rubles at the end of the reporting period.

Current assets in Q1 2021 increased by 7.3% (13.8 billion rubles) and amounted to 204.2 billion rubles. The growth of current assets is mainly connected with the increase in financial investments and cash equivalents.

Liabilities of JSC Inter RAO – Electric Power Plants as of March 31, 2021 decreased by 6.3 billion rubles (5.1%) and amounted to 118.6 billion rubles. Long-term and short-term borrowed funds reflect the corresponding lease liabilities, taking into account the application of the Russian FAS 25/2018 standard.

RAS Balance sheet of JSC Nizhnevartovskaya SDPP

Indicator* Q1 2021 Q1 2020 Change, %

Revenue

4.8

5.5

-12.4

Production cost

3.0

3.8

-21.6

Sales profit

1.7

1.6

8.2

Net Profit

1.4

1.3

4.8

As of March 31, 2021 As of March 31, 2021 Change, %

Total assets

34.5

32.0

7.8

Equity

29.6

28.2

4.9

Loans and borrowings

0.4

0.4

2.2

Net debt**

-8.9

-6.7

32.8

* In RUB billion, unless otherwise stated. Relative deviation (%) is calculated using accounting data (in thousand rubles) without regard to rounding. A retrospective recalculation was carried out taking into account the decision to apply in 2021 the Russian FAS 25/2018 "Accounting for Leases".

** '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 quarter of 2021 decreased by 12.4% (0.7 billion rubles) as compared to the same period of 2020 and amounted to 4.8 billion rubles.

Revenue from electricity sales decreased by 25.6% (0.8 billion rubles) compared to the corresponding period of 2020 and amounted to 2.4 billion rubles. The main decrease factor was a decline in the electricity sales volume by 29.0% (1.0 billion rubles) as a result of repair work and an increase in the duration of downtime in the cold standby, which was partially offset by an increase in weighted average sale price of electricity by 4.8% (0.2 billion rubles) as a result of current market conditions.

Revenue from capacity sales in the reporting period increased by 4.9% (0.1 billion rubles) as compared to the same period of the previous year and amounted to 2.3 billion rubles, mainly due to an increase in capacity sales and the use of "CSA 10/15 Delta" payment.

Production cost of the sold products in Q1 2021 decreased by 21.6% (0.8 billion rubles) compared to Q1 2020 and amounted to 3.0 billion rubles, mainly due to a decrease in gas costs by 27.7% resulting from a decrease in electricity generation volumes.

Gross profit in Q1 2021 increased by 8,1% (0.1 billion rubles) in comparison with the corresponding period of the previous year and amounted to 1,9 billion rubles.

Sales profit in Q1 2021 amounted to 1.7 billion rubles, while the sales profit in the same period of the previous year was 1.6 billion rubles.

Net profit of JSC Nizhnevartovskaya SDPP in the first quarter of 2021 amounted to 1.4 billion rubles. Net profit for the same period of the previous year was 1.3 billion rubles.

Balance Sheet

Total assets of JSC Nizhnevartovskaya SDPP increased by 7.8% (2.5 billion rubles) and amounted to 34.5 billion rubles as of March 31, 2021.

Non-current assets for the reporting period decreased by 0.8% (0.2 billion rubles) and amounted to 22.4 billion rubles as of March 31, 2021.

Current assets for the reporting period increased by 28.1% (2.7 billion rubles) to 12.2 billion rubles, mainly due to an increase in financial contributions and cash deposits.

Total liabilities increased by 28.9% (1.1 billion rubles) and amounted to 4.9 billion rubles as of March 31, 2021 due to an increase in accounts payable for settlements in accordance with contractual obligations. Long-term and short-term borrowed funds reflect the corresponding lease liabilities, taking into account the application of the Russian FAS 25/2018 standard.