25 Oct 2019 08:23
Federal Grid Company Announces 9M 2019 RAS Results
Moscow, 25 October 2019 - Federal Grid Company of Unified Energy System ("Federal Grid Company" or "the Company"; Moscow Exchange, LSE: FEES), part of PJSC ROSSETI Group of Companies, owner and operator of the Unified National Electricity Grid ("UNEG"), announces its financial results for 9M 2019 under Russian Accounting Standards (RAS).
The Company's RAS statements are prepared on a 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) | 9M 2018 | 9M 2019 | Change, % |
Revenue | 160,584 | 170,530 | 6.2% |
Electricity transmission services | 158,902 | 167,187 | 5.2% |
Connection services | 82 | 1,736 | 21.2x |
Cost of sales | 125,479 | 127,936 | 2.0% |
Management expenses | 5,621 | 5,623 | 0.04% |
Profit from sales | 29,484 | 36,971 | 25.4% |
Adjusted EBITDA* | 99,834 | 106,003 | 6.2% |
Net profit | 33,344 | 37,683 | 13.0% |
Adjusted net profit* | 28,046 | 31,846 | 13.5% |
* excluding accrual and reversal of allowance for doubtful debts, revaluation of quoted financial assets and revenue from connection services;
Federal Grid Company's performance indicators for 9M 2019 reflect management's efforts to facilitate financial stability and enhanced operational efficiency for the Company.
The Company's revenue for 9M 2019 increased by RUB 9,946 million or 6.2% year-on-year, more specifically:
- Electricity transmission services revenue increased by RUB 8,285 million or 5.2% year-on-year, driven by:
·; revenue from electricity transmission rising by RUB 6,862 million or 5.3% following tariff increases as of 1 July 2018 and 1 July 2019;
·; higher income from compensation for electricity losses in the amount of RUB 1,423 million or by 4.9% in connection with tariff increases for regulatory electricity losses, the rate of which is equal to the weighted average rate for PJSC ATS electricity purchases and capacity according to Russian Government decree №458 (dated 11 May 2018);
- Revenue from connection services increased by RUB 1,654 million (21x) due to changes in the service provision schedule in accordance with customer orders.
Adjusted EBITDA amounted to RUB 106,003 million, an increase of RUB 6,169 million or 6.2% year-on-year.
For 9M 2019, Federal Grid Company recorded a net profit in the amount of RUB 37,683 million, up 13% year-on-year. Net profit was significantly impacted by certain non-cash operations, including:
Item, mln RUB | 9M 2018 | 9M 2019 | Change, % |
Net profit | 33,344 | 37,683 | 13.0% |
Accrual/(Reversal) of allowance for doubtful debtors | -1,636 | -657 | -59.8% |
Revaluation of quoted financial assets | 6,852 | 4,823 | -29.6% |
Adjusted net profit** | 28,128 | 33,517 | 19.2% |
Revenue from connection services | 82 | 1,736 | 21.2x |
Adjusted net profit excluding connection services | 28,046 | 31,781 | 13.3% |
Income related to late payment charges and penalties/fines | 2,820 | 5,343 | 89.5% |
Adjusted net profit excluding connection services, penalties and fines | 25,226 | 26,438 | 4.8% |
** generated by cash flows (excluding accruals and reversal of allowance of doubtful debts, revaluation of quoted financial assets).
Adjusted net profit (excluding revenue from connection services and income related to late payment charges and penalties/fines) grew by RUB 1,212 million, or 4.8%, year-on-year.
Balance Sheet as of 30 September 2019
Assets
Federal Grid Company's total assets at the end of the reporting period amounted to RUB 1,492,215 million, which was RUB 5,153 million (0.3%) higher than at the beginning of the year. Non-current assets accounted for RUB 1,280,622 million, while current assets equalled RUB 211,593 million.
Federal Grid Company's total equity at the end of the reporting period increased by RUB 17,234 million (1.6%) as a result of the Company achieving a net profit for the period (RUB 37,683 million) and distribution profit for the year 2018 on dividend payments in the amount of RUB 20,449 million in accordance with the decision of the general meeting of shareholders of Federal Grid Company (minutes №22 dated June 28, 2019).
Company's gross debt as of the end of the reporting period decreased to RUB 228,479 million (by RUB 18,230 million, or 7.4% year-on-year).
Federal Grid Company's financial statements for 9M 2019 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/