5 Mar 2021 10:00
Federal Grid Company announces 2020 RAS financial results
Moscow, 05 March, 2021 - Federal Grid Company of Unified Energy System ("Federal Grid Company" or "the Company"; Moscow Exchange, LSE: FEES) owner and operator of the Unified National Electric Grid announces its financial results for 2020 under the Russian Accounting Standards (RAS).
These statements do not include the accounting figures of FGC UES, PJSC's subsidiaries or affiliated companies that operate as independent legal entities.
Key financial results
Item, mln RUB | 2020 | 2019 | Change, % |
Revenue | 230,592 | 242,700 | (5.0) |
Electricity transmission services | 222,409 | 223,144 | (0.3) |
Services for technological connection | 5,033 | 17,235 | (70.8) |
Cost of sales and management expenses | 183,791 | 183,401 | 0.2 |
Profit from sales | 46,801 | 59,299 | (21.1) |
EBITDA[1] | 126,550 | 129,358 | (2.2) |
Net profit | 39,965 | 58,139 | (31.3) |
The performance indicators of Federal Grid Company for 2020 reflect the management's efforts aimed at ensuring financial stability and enhancing the Company's performance in the adverse economic environment amid the developing COVID-2019 pandemic.
The Company's revenue in 2020 decreased by RUB 12,108 million, or 5% year-on-year. Regarding the main activities:
- revenue from electricity transmission services decreased by RUB 735 million or by 0.3%, driven by:
· reduction in revenue from compensation of electricity losses by RUB 3,326 million (by 8.3%) due to lower regulatory electricity losses submitted under transmission service agreements as a result of a drop in demand for electricity consumption;
· increase in revenue from power supply by RUB 2,591 million (by 1.4%) due to an increase in the tariff from July 01, 2019, and from July 01, 2020, taking into account a phased transition to settlements based on actual power consumption.
- revenue from services for technological connection is recognized RUB 12,202 million (70.8%) lower than for 2019 in line with the service provision schedule affected by consumer requests;
The net profit generated by the Company for the full 2020 year is RUB 39,965 million, which is 31.3% lower than in 2019. Adjusted net profit increased by RUB 3,930 million (or 13.1%).
The adjusted EBITDA stands at RUB 126,550 million, which is RUB 2,808 million (or 2.2%) lower than in 2019. Such result derives from the reduction in the financial performance in the form of penalties for the breach of contractual obligations due to the suspension by courts of collection of penalty interest, fines, late payment interest during the COVID-2019 pandemic. The adjusted EBITDA growth rate excluding this factor stands at 0.6%.
Balance Sheet as of December 31, 2020
As at the end of the reporting period, the total assets of the Company amounted to RUB 1,567,949 million, which was RUB 35,625 million (or 2.3%) more than at the beginning of the year. The value of non-current assets was RUB 1,389,204 million, and the value of current assets was RUB 178,745 million.
The Company's equity for the reporting period increased by RUB 42,026 million (by 3.8%) due to the generation of net profit for the reporting period (RUB (39,965 million), recognition of the non-current asset revaluation worth RUB 13,490 million, the adjustment of profit from prior years worth RUB 673 million in accordance with the applicable accounting rules (transfer of additional capital revaluation surplus with respect to the fixed assets being written down in accordance with Accounting Regulations 6/01) and the distribution of profit for 2019 in the form of dividends worth RUB 12,102 million pursuant to the resolution of the General Meeting of Shareholders of Federal Grid Company (Minutes No. 24 dated May 15, 2020).
Taking into account the interim dividends paid for 9 months of 2019 (resolution of the Extraordinary General Meeting of Shareholders No. 23 dated December 31, 2019) in the amount of RUB 11,229 million, the amount of dividends for the year 2019 totaled RUB 23,331 million.
During the reporting period, the Company's loan debt with consideration of the debt on interests accrued increased by RUB 2,099 million (0.9%) to RUB 229,158 million. In 2020 Federal Grid Company placed bonds in the amount of RUB 30,000 million and repaid loans in the amount of RUB 27,415 million.
The accounting statements for 2020 under RAS are available at the website of Federal Grid Company in the Financial Information / Statements Under RAS Section through the link below: https://www.fsk-ees.ru/eng/investors/financial_disclosure/ras_financial_reports/
[1] excluding accrual and reversal of provisions for doubtful debts and securities impairment, fixed asset revaluation, financial result related to revaluation of quoted financial assets, and revenue from services for technological connection