Key
Results in the Reporting Period
millions
of Russian rubles unless otherwise stated
Indicator
|
6M2020
|
6M2019
|
Change
|
Financial
Results
|
|
|
|
Revenue
|
39,454
|
39,799
|
-0.9%
|
electricity
distribution
|
37,441
|
37,307
|
0.4%
|
network
connection
|
1,846
|
2,292
|
-19.5%
|
other
|
167
|
201
|
-16.6%
|
Cost
of sales
|
28,673
|
28,098
|
2.0%
|
Gross
profit
|
10,780
|
11,701
|
-7.9%
|
Net
profit
|
7,611
|
7,796
|
-2.4%
|
EBITDA
|
16,464
|
16,762
|
-1.8%
|
EBITDA
margin
|
41.7
|
42.1
|
-0.4
pp
|
Operating
Results
|
Installed
capacity, MVA
|
33,721
|
32,485
|
3.8%
|
Connected
capacity, MW
|
317
|
320
|
-1.0%
|
Net
supply, mn kWh
|
15,036
|
15,666
|
-4.0%
|
Lenenergo
electricity network losses, mn kWh
|
1,849
|
1,933
|
-4.4%
|
Notes:
EBITDA
is net of the reserve balance for impairment of financial
investments.
EBITDA: Earnings Before Interest, Tax,
Depreciation and Amortization, less Reserve Balance for Impairment of
Financial Investments.
Connected capacity is permanent
electricity connections less generation.
“Amid
the COVID-19 pandemic, the Company’s management takes every effort
to minimize its adverse impact on the supply reliability and
financial stability of the Company and keep the Company’s financial
performance comparable to the year-ago period.
The significant
events in the 1st half of 2020 include the consolidation of
electricity grid assets completed by the Company in Saint Petersburg
through Rosseti Lenenergo’s takeover of its subsidiaries
Kurortenergo, Tsarskoye Selo Energy Company, Saint Petersburg Power
Grid, and Petrodvorets Electric Company.”
- Aleksey Polinov
Deputy CEO, Economic Affairs and Finance
Rosseti
Lenenergo
Notes
to the Operating Results
Net
electricity supply decreased by 4.0% in the 1st half of 2020 from
the 1st half of 2019 because of lower electricity consumption by
certain businesses due to a decline in production in the economic
downturn.
Electricity
losses decreased by 84 million kWh, or 4.4%, due to lower load
loss driven by an overall decrease in electricity consumption across
the regions and due to carrying out the electricity loss reduction
program, which includes measures to modernize the electricity
metering system and detect unbilled and noncontractual electricity
consumption.
Notes
to the Financial Results
Rosseti
Lenenergo posted revenue of 39,454 million rubles in the 6
months of 2020, including:
37,441
million rubles of electricity distribution revenue in the 6
months of 2020, or an increase of 0.4% (134 million rubles) year on
year due to higher tariffs.
1,846
million rubles of network connection revenue in the 6 months
of 2020, or 19.5% (446 million rubles) lower than in the prior year,
due to large contracts completed in the 1st half of 2019 and
previously signed by Petrodvorets Electric Company and Saint
Petersburg Power Grid, the rights and obligations under which were
transferred to Rosseti Lenenergo as part of the reorganization.
167
million rubles of other revenue in the 6 months of 2020, or
16.6% (33 million rubles) lower than in 2019, due to lower revenues
from grid equipment lease contracts.
Rosseti
Lenenergo’s cost of sales totaled 28,673 million rubles in
the reporting period, or 2.0% (575 million rubles) up year on year,
largely due to higher prices of electricity distribution services
provided by grid companies, increases in depreciation and
amortization, and equipment repair expenses.
Rosseti
Lenenergo earned a net profit of 7,611 million rubles in the
reporting period, or 2.4% (184 million rubles) down from the prior
year, primarily due to lower revenue.
Rosseti
Lenenergo posted EBITDA of 16,464 million rubles in the
reporting period, which is a decrease of 1.8% (298 million rubles)
from the year-earlier period, primarily due to estimated reserves in
other expenses alongside lower sales profit (net of amortization and
depreciation).
Principal
Balance Sheet Figures
millions
of Russian rubles unless otherwise stated
Indicator
|
June
30, 2020
|
2019*
|
Change
|
Assets
|
|
|
|
Non-current
assets
|
228,291
|
211,640
|
7.9%
|
Current
assets
|
17,197
|
15,185
|
13.2%
|
Total
assets
|
245,489
|
226,826
|
8.2%
|
Net
assets
|
166,221
|
148,076
|
12.3%
|
ROE
|
7.5
|
8.6
|
-1.1
pp
|
Equity
and Liabilities
|
|
|
|
Equity
and reserves
|
166,220
|
148,076
|
12.3%
|
Non-current
liabilities
|
39,868
|
32,911
|
21.1%
|
Current
liabilities
|
39,400
|
45,838
|
-14.0%
|
Total
liabilities
|
79,269
|
78,749
|
0.7%
|
Net
debt
|
17,854
|
20,924
|
-14.7%
|
Net
debt/EBITDA for 4 quarters
|
0.59
|
0.69
|
-
|
*
based on the accounting figures including retrospective adjustments
in the 2019 accounting figures due to the adoption of a new version
of Regulations for Accounting 18/02 “Profit Tax Accounting.”
Notes:
Net debt is calculated as long-term and short-term loans and
borrowings with interest payable, less cash and cash equivalents and
less short-term financial investments.
ROE is calculated as
(Net Profit [for 4 quarters] / Equity) * 100.
Rosseti
Lenenergo’s assets totaled 245,489 million rubles as at June
30, 2020, or 8.2% higher than at year end 2019. Assets grew, largely
due to the Company implementing the capex program and completing
Rosseti Lenenergo’s reorganization on May 14, 2020, through its
takeover of Saint Petersburg Power Grid, Petrodvorets Electric
Company, Kurortenergo, and Tsarskoye Selo Energy Company.
Rosseti
Lenenergo’s net assets grew by 18,145 million rubles, or
12.3% in the 1st half of 2020.
Rosseti
Lenenergo posted ROE of 7.5%, or 1.1 percentage points lower
than in 2019. ROE decreased because of a growth in the Company’s
equity after the consolidation with its subsidiaries.
Rosseti
Lenenergo’s non-current liabilities totaled 39,868 million
rubles, or up 21.1% (6,957 million rubles) as at the end of the
reporting period, due to the growing share of long-term debts in the
loan portfolio (alongside an overall decrease in debt value) and
because of a rise in deferred tax liabilities.
Rosseti
Lenenergo’s short-term and long-term loans and borrowings
totaled 25,756 million rubles as at June 30, 2020. Rosseti
Lenenergo’s net debt/EBITDA was below 1.0 as at the end of the 1st
half of 2020.
Investment
millions
of Russian rubles unless otherwise stated
Indicator
|
6M2020
|
6M2019
|
Change
|
Capital
investment, mn RUB,
exclusive
of VAT
|
11,884
|
7,954
|
149%
|
Commissioned
fixed assets, mn RUB
|
7,910
|
4,631
|
171%
|
Commissioned
capacity, MVA
|
544
|
229
|
238%
|
Commissioned
capacity, km
|
1,056
|
637
|
166%
|
Notes:
The 1H2020 actual figures are based on available information.
Capital
investment totaled 11,884 million rubles in the reporting period,
or 149% higher than a year earlier. The value of commissioned fixed
assets reached 7,910 million rubles in the reporting period, or 171%
higher than in 2019.
Capital
investment and commissioned fixed assets in the 1st half of 2020 went
up year on year due to increased obligations under existing network
connection contracts and early commissioning under the capex project
to modernize Rosseti Lenenergo’s information security system.
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