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Bolshaya Pirogovskaya ulitsa, 27 building 2, Moskva, Russia, 119435  ·  +7 (495) 664–88–40  ·  office@interrao.ru

PJSC Inter RAO Announces RAS Financial Results for the First Six Months of 2017

PJSC Inter RAO announced financial results for the first six months of 2017 prepared to the Russian Accounting Standards (RAS).

Indicator * First six months of 2017 First six months of 2016 +/-
Revenue 18.8 20.7 -9.3%
Cost of goods sold 15.3 15.1 1.5%
Gross profit 3.5 5.6 -38.2%
Sales profit/(loss) -0.3 1.6 -
Net income 4.1 36.3 -88.7%
June 30, 2017 December 31, 2016
Total assets 431.9 437.9 -1.4%
Total equity 418.8 430.0 -2.6%
Loans and borrowings 0.0 0.0 -
Net debt** -40.6 -41.7 -2.4%

* Billion rubles unless indicated otherwise Percentage change (%) is calculated using accounting data in thousand rubles.

** 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

Revenue of PJSC Inter RAO for the first six months of 2017 was 18.8 billion rubles, down 1.9 billion rubles (9.3%) from the first six months of 2016.

Revenue from electricity export was 11.9 billion rubles, down 3.0 billion rubles (19.9%) from the first six months of 2016. This change is related mainly to a decrease in sales to Georgia (by 44.5%) and Belarus (by 20.4%), and a decrease in the ruble equivalent of the sale price related to a reduced exchange rate in the first six months of 2017 compared to the same period in 2016. Revenue from WECM electricity and capacity sales for the first six months of 2017 was 6.6 billion rubles, up 1.8 billion rubles (36.8%). This change is related to an increase in electricity import.

Cost of goods sold for the first six months of 2017 was 15.3 billion rubles, which is 0.2 billion rubles (1.5%) higher than in the same period of 2016. The change in cost of goods sold reflects several partially offsetting factors, including a 1.4 billion ruble (93.3%) increase in the cost of electricity import due to the increase in electricity import from Kazakhstan (by a factor of 2.3), a 0.7 billion ruble (5.4%) reduction in the cost of electricity and capacity purchased at WECM due to lower export by volume, a reduction in other cost of sales by 0.5 billion rubles (65.7%) as part of implementation of projects on exporting power generation equipment.

Gross profit for the first six months of 2017 was 3.5 billion rubles compared to 5.6 billion rubles in the same period of 2016.

Selling costs in the first six months of 2017 were 1.3 billion rubles, down 0.2 billion rubles (12.1%) year-on-year. The primary driver of this change was the lower cost of infrastructure services due to a change in electricity exports by volume.

General and administrative expenses for the first six months of 2017 were 2.5 billion rubles, down 0.1 billion rubles (3.9%) year-on-year.

Sales loss for the first six months of 2017 was 0.3 billion rubles compared to the sales profit of 1.6 billion rubles in the same period of the previous year.

Income from share ownership in other companies changed by 0.4 billion rubles (37.4%) and amounted to 0.6 billion rubles, which was related to smaller dividend payments from Group subsidiaries.

Interest receivable for the first six months of 2017 was 1.9 billion rubles. The 0.2 billion ruble (9.3%) reduction in the interest receivable compared to the first six months of 2016 is related primarily to several partially offsetting factors, including an increase in deposits in the form of minimum balances on settlement accounts and a change in the interest rate on loans granted to Group companies.

Balance of other income/expenses for the first six months of 2017 was -0.3 billion rubles compared to 32.2 billion rubles for the same period of 2015. This change was influenced primarily by expenses related to foreign currency translation differences resulting from changes in the exchange rate, and meeting liabilities related to contracts for export of equipment. The primary driver of this change compared to the same period in 2016 was the one-off income from the sale of a 40.007% ownership stake in PJSC Irkutskenergo recorded in the statements for the first six months of 2016, combined with the recognition of contingent liabilities on the joint and several guarantee of an option agreement with SC Vnesheconombank.

As a result, the net profit for the first six months of 2017 was 4.1 billion rubles, compared to 36.3 billion rubles for the same period of 2016.


Balance sheet

As of June 30, 2017, total assets of PJSC Inter RAO decreased by 6.0 billion rubles (1.4%), to 431.9 billion rubles compared to December 31, 2016.

Non-current assets decreased by 6.4 billion rubles (1.8%) to 355.3 billion rubles compared to the beginning of the year. This change is related primarily to a decrease in other non-current assets by 11.1 billion rubles (86.1%) to 1.8 billion rubles due to reclassification of the long-term part of accounts receivable to short-term receivables.

As of June 30, 2017, current assets amounted to 76.6 billion rubles, having changed little during the first six months of 2017.

As of June 30, 2017, there was no debt load. The net debt of PJSC Inter RAO was -40.6 billion rubles compared to -41.7 billion rubles as of the beginning of the year.

Total debt (excluding loans and borrowings) increased by 5.2 billion rubles (65.8%) compared to the beginning of the year and amounted to 13.2 billion rubles as of June 30, 2017. This change is related primarily to dividends payable for 2016 which did not have to be paid on the reporting date in accordance with the decision of the Annual General Shareholders' Meeting of PJSC Inter RAO as of June 9, 2017.


Next material:

Inter RAO Group's Suppliers of Last Resort Announce RAS Financial Results for the First Six Months of 2017
Consolidated
financial statements
prepared according to
IFRS
for 3Q 2017
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 32 GW of installed power generation capacity.

www.interrao.ru