31 Mar 2011 07:31
Federal Grid Company's FY 2010 financial results under RAS
Moscow, 31 March 2011 - Federal Grid Company of Unified Energy System ("Federal Grid" or the "Company", ticker: FEES on MICEX, RTS and LSE) today announces its audited financial results for the year ended 31 December, 2010 in accordance with Russian Accounting Standards (RAS), excluding the Company's subsidiaries and affiliated companies that operate as independent legal entities.
2010 Financial Highlights:
·; Revenue of RUR 111.1 billion, up 30.6% from previous year
·; EBITDA increased by 69.1% from previous year to RUR 68.3 billion
·; Operating profit up by 85% from previous year to RUR 29.4 billion
·; Net profit of RUR 58.1 billion
·; Electricity transmission tariff set for 2010 increased by 51.1% to 87,868.77 RUR/MW month
The growth in the Company's revenue in 2010 compared to the previous year was due to the introduction of the new RAB tariff from 1 January 2010 with a consenquent 51.1% increase in the transmission tariff, compared tothe previous year. Electricity transmission services are the main source of the revenue.
Operating costs, including general administrative expenses, increased by 18.1% from the previous year to RUR 81.7 billion in 2010, due to the commissioning of new capacity, and an increase in the depreciation costs as a result of the re-evaluation of the Company's main assets.
EBITDA increased by 69.1% year-on-year to RUR 68.3 billion and the Company's net profit grew to RUR 58.1 billion from a loss in the previous year due to higher revenue on the back of the growth of the transmission tariff as well as revenue from other sources.
RUR bn
31.12.2009 | 31.12.2010 | Change, % | |
Revenue | 85.1 | 111.1 | 30.6 |
Operating costs (including general administrative expenses) | 69.2 | 81.7 | 18.1 |
Operating profit | 15.9 | 29.4 | 85.0 |
Profit (loss) before tax | -54.0 | 68.32 | n/a |
EBITDA | 40.4 | 68.30 | 69.1 |
Net profit (loss) | -59.9 | 58.1 | n/a |
Balance Sheet as of December 31st, 2010
RUR bn
01.01.2010 | 31.12.2010 | Change, % | |
Assets | 746.7 | 871.5 | 16.7 |
Non-current assets, including: | 524.1 | 640.8 | 22.3 |
Fixed assets | 237.8 | 236.2 | -0.7 |
Construction in progress | 216.5 | 298.6 | 37.9 |
Financial investments | 67.0 | 104.1 | 55.4 |
Current assets, including: | 222.6 | 230.7 | 3.6 |
Accounts receivable | 137.7 | 166.3 | 20.8 |
Short-term financial investments | 69.1 | 46.2 | -33.1 |
Equity and liabilities | 746.7 | 871.5 | 16.7 |
Equity | 665.6 | 763.9 | 14.8 |
Shareholders' equity | 576.8 | 616.8 | 6.9 |
Long-term liabilities (borrowings and loans) | 6.0 | 50.0 | 733.3 |
Short-term liabilities | 73.6 | 55.0 | -25.3 |
Assets
During 2010, Federal Grid's assets increased by 16.7% to a total of RUR 871.5 billion (as at the end of the year).The value of non-current and current assets were RUR 640.8 billion and RUR 230.7 billion respectively.
In 2010, the growth in non-current assets by RUR 116.7 billion (22.3%) was due to the following key reasons:
·; Construction in progress as part of implementing the Company's investment programme was up 37.9% year-on-year at RUR82.1 billion;
·; Long-term investments increased by 55.4% year-on-year to RUR37.1 billionas aresult of re-evaluation offinancial investments due to an increase in theircurrent market value, as well as ofconverting promissory notesof Energo-finans Ltd. from long-term accounts receivable to long-term financial investments. The conversion was performed based on contract novation.
A 3.7% increase in current assets by 3.7% to RUR 8.1 billion in 2010 was due to the following key reasons:
·; A RUR 2.2 billion (90.8%) increase in inventory, including materials (RUR 2.1 billion) due to purchasing materialsfor non-contracted repairs;
·; A reduction in accounts receivable by RUR 11.8 billion (-57.6%) as a result of converting promissory notesof Energo-finans Ltd. from long-term accounts receivable to long-term financial investments based on contract novation and to redemption promissory notes of JSC Mobilnye GTES;
·; An increase in short-term accounts receivable by RUR 40.5 billion (34.5%) because of higher advance paymentsfor implementing the investment program and restoring the accrued provision for bad debt, such as promissory notes of Indeks Energetiki - FGC UES Ltd;
·; A RUR 22.9 billion (-33.1%) reduction in short-term financial investments, including cash deposits;
The Company's capital increased by 14.8% during FY2010 due an increase in the Company's charter capital asa result of accounting for an additional share issue in the amount of RUR 40.0 billion in 2009, as well as receivinga net profit of RUR 58.1 bln in the FY2010.
As of December 31st, 2010, Federal Grid's long-term liabilities increased to total RUR 50.0 billion, representingan 8 times increase from the previous year. This resulted from the bond issues 06, 07,08,09,10, and 11, used for financing the Company's investment programme. As of December 31st, 2010, the Company's short-term liabilities reduced by 25.3%.
Federal Grid's financial statements for FY2010 under RAS standards can be found on the Company's web site following the link below: http://old1.fsk-ees.ru/eng/investor_finance_ras.html.
Contacts
| ||
Investors | ||
Alexander Duzhinov | + 7 (495) 710-90-64 | +7 (916) 041-80-53 |
Media | ||
Ekaterina Dobrogorskaya | +7 495 710 8239 | +7 916 372 4393 |
College Hill - International Media | ||
Leonid Fink | +44 (0)20 7457 2015 | +44 (0)7 837 67 4444 |
Simon Whitehead | +44 (0)20 7457 2072 | +44 (0)7 881 78 3372 |
About Federal Grid Company
Federal Grid is the operator and manager of Russia's unified electricity transmission grid system. With over 121,000 km of transmission lines and over 305 GVA of installed transformer capacity, it is the largest publicly traded electricity transmission company in the world.
Federal Grid's business is to provide transmission and connection services to the Russian wholesale electricity market. It maintains and develops the grid system and supervises grid facilities and infrastructure in 73 regionsof Russia, in which it operates. Its customers are regional distribution companies, retail electricity supply and large industrial enterprises The Company operates in an exclusive, competition free environment, and is regulated by the Government of the Russian Federation.
The Company's revenue is mainly driven by the transmission tariff set by the Regulator, the Federal Tariff Service. From 1 January 2010 a new RAB (Regulatory Asset Base) tariff framework, designed to stimulate investmentand operating efficiency, was introduced.
The Company was incorporated in 2002 as part of reorganization of Russia's electrical power industry. The Russian government is the largest shareholder with a 79.48% stake.
Further information can be found at www.fsk-ees.ru/eng.
Neither the content of the issuer's website nor the content of any other website accessible from hyperlinkson the issuer's website is incorporated into, or forms part of, this announcement.