FSK YeES : Federal Grid Company Announces Q1 2017 RAS Results
April 28, 2017 at 09:24 am
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Federal Grid Company Announces Q1 2017 RAS Results
04/28/2017
Federal Grid Company of Unified Energy System ('Federal Grid Company' or 'the Company'; Moscow Exchange, LSE: FEES), the owner and operator of the Unified National Electricity Grid ('UNEG'), announces its financial results for the first quarter of 2017 under Russian Accounting Standards (RAS).
The Company's RAS statements are prepared on standalone basis and do not include the results of Federal Grid Company's subsidiaries or affiliated companies that operate as independent legal entities.
Key financial results
Item (mln RUB)
Q1 2016
Q1 2017
Change, %
Revenue
43,645
45,858
5.1%
Electricity transmission services
41,570
45,313
9.0%
Connection services
1,670
99
-94.1%
Cost of sales
34,071
34,533
1.4%
Cost of sales, excluding purchase of electricity, property tax, depreciation and amortisation
7,379
6,916
-6.3%
Management expenses
1,427
1,379
-3.3%
Management expenses, excluding property tax, depreciation and amortisation
962
939
-2.4%
Profit from sales
8,147
9,946
22.1%
Adjusted EBITDA*
32,344
34,989
8.2%
Net profit
10,449
8,838
-15.4%
* excluding accrual and reversal of provisions for doubtful debts, revaluation of assets and fees from connection services
Federal Grid Company's performance in the first quarter of 2017 demonstrates the company's ongoing work to improve operational efficiency.
The Company's revenue for Q1 2017 increased by 5.1% year-on-year, driven by:
Electricity transmission services revenue grew by RUB 3,743 million, or by 9.0% year-on-year, due to tariff increase by 7.5% since 01.07.2016, and due to an increase in capacity consumption by direct customers;
Revenue from connection services decreased in accordance with the schedule of services, which reflects customer orders.
Adjusted earnings before interest, income tax, depreciation and amortisation, revenue from connection services and excluding accrual and reversal of provisions for doubtful debts (adjusted EBITDA) increased by RUB 2,645 million (8.2%) year-on-year and amounted to RUB 34,989 million.
Federal Grid Company's Q1 2017 net profit amounted to RUB 8,838 million, a year-on-year decline of 15.4%. The change in the financial result was greatly influenced by non-cash operations reflected in the Q1 2016 (reversal of provisions for doubtful debts in connection with agreements that were signed on the restructuring of arears for electricity transmission services).
Item (mln RUB)
Q1 2016
Q1 2017
Change, %
Net profit
10,449
8,838
-15.4%
Change in provisions
4,623
-743
-
Adjusted net profit**
5,826
9,581
64.4%
** profit generated by cash operations (adjusted for accrual / reversal of provisions for bad debts and financial investments).
Adjusted net profit (excluding revaluations and reserve accruals) grew by 64.4%.
In Q1 2017, Federal Grid Company continued implementing measures to optimise costs. Operating costs (excluding electricity purchases, depreciation and amortisation, and property tax) decreased by RUB 463 million year-on-year (-6.3%). Management costs (excluding depreciation and amortisation and property tax) decreased by RUB 23 million year-on-year (-2.4%). At the same time, in the first quarter of 2017, the increase of certain cost items is due to the growth in tax payments related to the phased repeal of the property tax rebates.
Item (mln RUB)
Q1 2016
Q1 2017
Change, %
Operating expenses and management costs
35,498
35,912
1.2%
Electricity purchases
4,375
4,108
-6.1%
Electricity transmission services
617
241
-61.0%
Taxes and duties (including social tax)
3,543
3,903
10.2%
Depreciation and amortisation
20,469
21,216
3.7%
Managed costs
6,494
6,443
-0.8%
Balance sheet as of 31 March 2017
Assets
Federal Grid Company's total assets remained virtually unchanged from the beginning of the year, decreasing by just RUB 308 million to RUB 1,365,866 million. Non-current assets accounted for RUB 1,172,213 million, while current assets amounted to RUB 193,353 million
Liabilities
Federal Grid Company's equity increased by RUB 8,838 million (0.9%). This change is attributable to the profit generated in Q1 2017.
The company's gross debt decreased by RUB 1,026 million (0.4%) during the first three months of the year and amounted to RUB 264,823 million (including accrued interest).
Federal Grid Company's financial statements for Q1 2017 under RAS are available on the Company's website in the Financial Disclosure/RAS Financial Reports section at the link: http://www.fsk-ees.ru/eng/investors/financial_disclosure/ras_financial_reports/
FSK EES JSC published this content on 28 April 2017 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 28 April 2017 08:24:12 UTC.
Original documenthttp://www.fsk-ees.ru/eng/public_relations/news/?ELEMENT_ID=212999
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PJSC Federal Grid Company of Unified Energy System specializes in Russian high voltage grid operating. Net sales break down by activity as follows:
- electricity transmission (89.1%): 558,722 GWh transmitted in 2019;
- other (10.9%): sale of electricity, installation of equipment, maintenance and repair of grids services.