Monday, 30 May 2017 Inter RAO Group Consolidated Financial and Operating Results for 1Q2017.
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Inter RAO financial results for Q1 2017 according to RAS released today

Today, Inter RAO PJSC released financial results for Q1 2017 according to the Russian Accounting Standards (RAS).

Indicator* Q1 2017 Q1 2016 +/-
Revenue 8.6 9.5 -10.3%
Production cost 7.2 6.6 9.1%
Gross profit 1.3 2.9 -54.1%
Net income -0.6 1.1 -
Net profit 0.02 1.0 -98.4%
As of March 31, 2017 As of December 31, 2017
Total assets 437.8 437.9 -0.02%
Total equity 430.0 430.0 0.004%
Loans and borrowings 0.0 0.0 -
Net debt** -43.6 -41.7 4.6%

* In billion RUB unless specified otherwise. Percentage change (%) is calculated using accounting data in thousand RUB.

** Short-term loans and borrowings plus Long-term loans and borrowings less Cash and cash equivalents less Short-term financial investments (cash in bank accounts)

Income statement

Inter RAO's revenue for Q1 2017 amounts to RUB 8.6 bn down RUB 1.0 bn (-10.3%) as compared to Q1 2016.

Revenue from export of electricity amounts to RUB 5.5 bn down RUB 1.9 bn (-25.9%) as compared to Q1 2016. Decrease in revenue is primarily attributed to decrease in export sales in terms of volume to Georgia (-41.3%) and Kazakhstan (-12.6%), as well as to a drop in prices denominated in RUB due to a higher RUB exchange rate as compared to Q1 2016. Revenue from electricity and capacity sales on the WECM increased by RUB 0.7 bn (+33.0%) and amounts to RUB 2.8 bn as of the end of Q1 2017. Increase in revenue from sales on the WECM is attributed to increase in import of electricity.

Inter RAO's production cost for Q1 2017 amounts to RUB 7.2 bn up RUB 0.6 bn (+9.1%) as compared to Q1 2016. Main reasons for changes in production cost were increase in the cost of import of electricity by RUB 0.6 bn (+152.7%) due to a 3 time increase in import of electricity from Kazakhstan and increase in the cost of other sales by RUB 0.3 bn. (+100%) as a result of exporting energy generating equipment, and decrease in prices for electricity and capacity on the WECM by RUB 0.3 bn (-5.1%) due to decrease in export.

Inter RAO's gross profit for Q1 2017 amounts to RUB 1.3 bn as compared to RUB 2.9 bn in Q1 2016.

Commercial and administrative costs for Q1 2017 amount to RUB 0.7 bn and RUB 1.2 bn respectively and are nearly the same as in Q1 2016.

Inter RAO's sales profit for Q1 2017 is negative and amounts to RUB -0.6 bn as compared to RUB 1.1 bn in Q1 2016.

Interest receivable for Q1 2017 amounts to RUB 1.2 bn. Increase in interest receivable by RUB 0.3 bn (+27.5%) as compared to Q1 2016 is primarily attributed to increase in deposits on bank accounts and increase in loans provided to the companies of the Group.

Balance of other incomes and expenses is down RUB 0.8 bn as compared to Q1 2016. Main reasons for this were changes in the RUB exchange rate.

As a result, Inter RAO's net profit for Q1 2017 amounts to RUB 0.02 bn as compared to RUB 1.0 bn in Q1 2016.

Balance sheet

Total assets of Inter RAO, as of March 31, 2017, changed insignificantly as compared to December 31, 2016 and amount to RUB 437.8 bn.

Non-current assets decreased by RUB 3.7 bn (-1.0%) as compared to December 31, 2016 and amount to RUB 357.9 bn. The main reason for this is a decrease in other non-current assets by RUB 3.2 bn (-25.2%) to RUB 9.6 bn as a result of reclassification of long-term accounts receivable into short-term ones.

In Q1 2017, current assets decreased by RUB 3.6 bn (+4.8%) and amount to RUB 79.9 bn as of March 31, 2017. This change is explained by the following factors: an increase in short-term financial investments by RUB 9.2 bn (+108.8%) due to increase in cash held on over 3 month deposits and increase in intragroup loans, a decrease in cash and cash equivalents by RUB 2.8 bn (-6.8%) due to decrease in cash held on less than 3 month deposits and a decrease in short-term accounts receivable by RUB 2.7 bn (-10.8%) due to them being paid off.

Inter RAO does not have any debts as of March 31, 2017. Inter ROA's net debt amounts to RUB -43.6 bn as compared to RUB -41.7 bn at the beginning of the year.

Total liabilities (excluding loans and borrowings) changed insignificantly and, as of March 31, 2017, amount to RUB 7.8 bn.


Next material:

Guaranteeing Suppliers of Inter RAO Group Announce RAS Financial Results for the First Quarter of 2017
Consolidated
financial statements
prepared according to
IFRS
for 2016 year
View report

Reference

Inter RAO Group is a diversified energy holding serving various segments of Russian and international electric power industry. The Group is the leading exporter and importer of electricity in Russia actively increasing electricity generation and sales, and developing new lines of business.

The corporate strategy of Inter RAO is focused on making Inter RAO a global energy enterprise, a key player in the global energy market, and Russia's leading electric utility by energy efficiency. Inter RAO Group owns and operates approximately 31.3 GW of installed power generation capacity.

www.interrao.ru