1 Jun 2020 09:51
Federal Grid Company announces IFRS results for the first 3 months of 2020
Moscow, 01 June 2020 - Federal Grid Company of Unified Energy System ("Federal Grid Company" or "the Company"; Moscow Exchange, LSE: FEES), part of PJSC ROSSETI Group of Companies, and the operator of the Unified National Electricity Grid ("UNEG"), announces its condensed unaudited consolidated financial results for the three months ended 31 March 2020 under International Financial Reporting Standards (IFRS).
The financial results relate to Federal Grid Company and its subsidiaries ("the Group of Companies" or "the Group").
Key financial results:
Financial indicator, RUB billion | Three months ended 31 March 2019 | Three months ended 31 March 2020 | Change |
Revenues | 57.5 | 58.7 | 2.1% |
Adjusted EBITDA(1) | 36.9 | 36.6 | (0.8)% |
Profit for the period | 27.4 | 19.7 | (28.1)% |
Total comprehensive income | 26 | 19.2 | (26.2)% |
(1) Adjusted EBITDA is calculated as EBITDA (earnings before tax, financial income and expenses, depreciation and amortisation) excluding reversal of net loss from impairment of property (only for 3M 2019), revenue from connection services, cost of creating a reserve for expected credit losses, gain on disposal of assets (from asset exchange with JSC DVEUK, only for 3 months of 2019), changes in reserve for lawsuits and including financial income.
Operational performance highlights(2):
Operational indicator | Three months ended 31 March 2019 | Three months ended 31 March 2020 | Change |
Electricity supply from UNEG to consumers, billion kWh | 144.1 | 139.5 | (3.2)% |
Total transformer capacity(3), GVA | 351.9 | 351.9 | - |
Transmission grid length(3), thousand km | 147.2 | 148.0 | 0.5% |
(2) PJSC Federal Grid Company of Unified Energy System
(3) Including rented transmission lines and substations
Financial results for the three months ended 31 March 2020
The Group's revenue amounted to RUB 58.7 billion, including:
- revenue from electricity transmission services amounted to RUB 56.1 billion, at the same level as in the first quarter of 2019;
- revenue from electricity sales amounted to RUB 0.5 billion, at the same level as in the first quarter of 2019;
- revenue from connection services amounted to RUB 0.3 billion, a RUB 0.2 billion increase year-on-year as a result of service schedules determined by customer orders;
- revenue from general contractor service agreements executed by Federal Grid Company subsidiaries amounted to RUB 1 billion, while in the first quarter of 2019 revenue from general contractor service agreements was not recognised due to the absence of completed work stages of construction projects during the reporting period last year.
Operating expenses(4)
(RUB billion, or %) | Three Months ended 31 March 2019 | Three Months ended 31 March 2020 | Change |
Electricity purchases for operational purposes | 10.8 | 10.1 | (6.5)% |
Depreciation and amortisation | 9.1 | 10.1 | 11.0% |
Taxes and fees | 5.2 | 5.2 | - |
Materials, repairs and technical maintenance | 0.5 | 0.9 | 80% |
Electricity transit | 0.3 | 0.4 | 33.3% |
Other | 9.0 | 9.3 | 3.3% |
Total operating expenses | 34.9 | 36.0 | 3.2% |
(4) excluding expenses for general contractor services rendered by subsidiaries
In the first three months of 2020, the Group's operating expenses increased by 3.2% year-on-year mainly due to an increase in depreciation and amortization by RUB 1 billion (+11%), as well as:
- an increase in costs for materials, repairs and maintenance by RUB 0.4 billon (+80%);
- an increase in other operating expenses by RUB 0.3 billion (+3.3%);
- an increase in electricity transit costs by RUB 0.1 billion (+33.3%).
Adjusted EBITDA for the three months of 2020 amounted to RUB 36.6 billion, down 0.8% (RUB 0.3 billion) year-on-year. This was mainly caused by the drop of irregular income in the form of penalties, which were taken into account based on writs of execution.
For the three months of 2020, the Group's profit amounted to RUB 19.7 billion, down 28.1% (RUB 7.7 billion) year-on-year. At the same time net profit for the three months of 2020 (RUB 19.7 billion) exceeds by 1 % adjusted net profit for the three months of 2019, which amounted to RUB 19.5 billion (calculated as profit for the period excluding the effect of the asset exchange transaction with JSC DVEUK).
Selected balance sheet items
(RUB billions) | 31 December 2019 | 31 March 2020 | Change |
ASSETS |
|
|
|
Non-current assets | 1,165.7 | 1,169.5 | 0.3% |
Current assets | 124.6 | 132.4 | 6.3% |
Total assets | 1,290.3 | 1,301.9 | 0.9% |
EQUITY AND LIABILITIES |
| ||
Non-current liabilities | 287.3 | 301.4 | 4.9% |
Current liabilities | 101.2 | 79.6 | (21.3)% |
Total liabilities | 388.5 | 381.0 | (2.0)% |
Equity attributable to shareholders of PJSC FGC UES | 901.6 | 920.7 | 2.1% |
Non-controlling interest | 0.2 | 0.2 | - |
Total equity | 901.8 | 920.9 | 2.1% |
Total equity and liabilities | 1,290.3 | 1,301.9 | 0.9% |
For the first 3 months 2020, the Group's total assets grew by RUB 11.6 billion (+0.9%) compared to the end of 2019 and amounted to RUB 1,301.9 billion. Non-current assets stood at RUB 1,169.5 billion, while current assets amounted to RUB 132.4 billion.
The liabilities of the Group at the end of the reporting period decreased by 2.0% year-on-year to RUB 381.0 billion.
Federal Grid Company's condensed consolidated interim IFRS financial statements for the three months of 2020 ended on 31 March 2020 are available on the Company's website:
https://www.fsk-ees.ru/eng/investors/financial_disclosure/ifrs_financial_reports/