19 Nov 2019 10:39
PJSC FGC UES (FEES) PJSC FGC UES announces 9M 2019 IFRS results 19-Nov-2019 / 13:39 MSK Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.
Federal Grid Company announces 9M 2019 IFRS results
Moscow, 19 November 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 and the operator of the Unified National Electricity Grid ("UNEG"), announces its unaudited condensed consolidated interim financial results for the three and nine months ended 30 September 2019 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:
(1) Adjusted EBITDA is calculated as EBITDA (earnings before tax, financial income and expenses, depreciation and amortisation) excluding the net reversal of impairment of property, plant and equipment, revenue from connection services, accrual of allowance for expected credit losses, gain on disposal of assets (only for 9 months of 2019), loss on disposal of associated company (only for 9 months of 2019), movement in provision for legal claims and including financial income.
* including retrospective adjustments.
Operational performance highlights (2):
(2) PJSC Federal Grid Company of Unified Energy System (3) Including rented transmission lines and substations
Financial results for the nine months ended 30 September 2019
The Group's revenue amounted to RUB 173.5 billion, including: - revenue from electricity transmission services amounted to RUB 166.9 billion, a 5.1% (RUB 8.1 billion) increase year-on-year as a result of: growth in revenue from electricity transmission following tariff increases on 1 July 2018 and 1 July 2019 in the amount of 5.5% in both instances; growth of income from compensation of losses caused by the increase in the tariff for regulatory and technological losses of electricity, the amount of which is equal to the weighted average rate for the purchase of electricity and power of PJSC ATS in accordance with Decree № 458 of the Government of the Russian Federation, dated 11 May 2015.
- revenue from connection services amounted to RUB 2.5 billion, a RUB 2.4 billion increase year-on-year as a result of service schedules determined by customer orders; - revenue from electricity sales amounted to RUB 1.2 billion (down RUB 7 billion year-on-year), due to a decrease in the volume of electricity sold by a Federal Grid Company subsidiary; - revenue for grids repair and maintenance services rendered to third-party owners rose by 33.3% (RUB 0.3 billion) and amounted to RUB 1.2 billion. This revenue growth was driven by an increase in the volume of services provided by Federal Grid Company subsidiaries; - revenue for work under general contractor agreements executed by Federal Grid Company subsidiaries amounted to RUB 0.3 billion, a decrease of RUB 4.3 billion compared to the same period in 2018. This decrease in revenue was due to the completion of the main stages of construction projects.
Operating expenses
In the first nine months of 2019, operating expenses amounted to RUB 107.0 billion, a decrease of 3.8% year-on-year, due to: An increase in certain expenses (depreciation and amortization, electricity transit), was offset by lower costs on fuel for mobile gas-turbine electricity plants, taxes and other operating expenses; The increase in depreciation by RUB 3.4 billion (+14.0%) in connection with new capacities being commissioned; The increase in electricity transit costs is associated with an increase in the volume of electricity transit via the Republic of Kazakhstan's grid; The decrease in other operating expenses by RUB 1.6 billion (-4.3%) is primarily due to lower expenses related to general contractor activities of Federal Grid Company subsidiaries.
For the nine months of 2019, the Group's profit amounted to RUB 70.4 billion, a year-on-year increase of RUB 11.3 billion (+19.1%).
Total comprehensive income for the period amounted to RUB 73.6 billion, an increase of RUB 3.1 billion (+4.4%).
Selected balance sheet items
Federal Grid Company's condensed consolidated interim IFRS financial statements for the three and nine months ended on 30 September 2019 are available on the Company's website: https://www.fsk-ees.ru/eng/investors/financial_disclosure/ifrs_financial_reports/
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| ISIN: | US3133542015 |
| Category Code: | QRT |
| TIDM: | FEES |
| Sequence No.: | 30039 |
| EQS News ID: | 916135 |
| End of Announcement | EQS News Service |
UK Regulatory announcement transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.