Wednesday, 15 August 2018 Inter RAO Group Consolidated Financial and Operating Results for 1H2018.
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Russian Power Generation Subsidiaries of Inter RAO Group Announce RAS Financial Results for the First Quarter of 2018

PJSC Inter RAO releases RAS financial statements for the first quarter 2018

PJSC Inter RAO released its financial statements according to the Russian Accounting Standards for the first quarter of 2018.

Index* 1st quarter of 2018 1st quarter of 2017 +\-
Revenue 9,7 8,6 13,8 %
Production cost 7,3 7,2 0,6 %
Gross profit 2,5 1,3 84,9 %
Profit\loss Statement 0,7 -0,6 -
Net profit 1,3 0,02 by 83,2
As of March 31st 2018 As of December 31st 2017
Total Assets 477,3 468,1 2,0 %
Total Equity 431,6 430,3 0,3 %
Borrowings & Loans 36,6 28,9 26,7 %
Net Liabilities* -65,1 -50,1 29,9 %

*In billion rubles unless otherwise stated. Relative deviation (in %) is calculated according to the financial statements’ data (in thousands’ rubles).

**Short-term borrowings loans plus long-term borrowings and loans minus cash and cash equivalents minus short-term deposits in the numbers of funds in deposit accounts).

Income Statement

Revenues of PJCS Inter RAO for the first quarter of 2018 amounts to 9,7 billion rubles which is 1,2 billion rubles (13,8%) up as compared to the first quarter of 2017.

Power export revenues amount to 5,9 billion rubles which is 0,4 billion rubles (7,8%) as compared to the first quarter of 2017. The change is primarily attributed to the growth in the ruble equivalent of the clearance price due to the rise in the euro and the North Pool power exchange prices in the Lithuania — Finland zone. Therewith the scope of supply’s influence in physical data has been divergent, from the rise in supply to Kazakhstan (19,7%), Azerbaijan (4,8%), Finland (2,0%) to the concurrent fall-off of exports in Georgia (95,9%) and in Belorussia (89,4%). The revenues in supply and power in the Wholesale market for electricity and power has risen by 1,0 billion rubles and at the 1st quarter end of 2018 is 3,8 billion rubles. The rise in supply in the Wholesale market for electricity and power is due to the rise In the import of power from Kazakhstan.

Inter RAO’s production cost for Q1 2018 amounts to 7,3 billion rubles, showing a slight increase by 0,6%.

Gross profit the first quarter of the present year amounts to 2,5 billion rubles as compared to 1,3 billion rubles in Q1 2017.

Business expenses for the first quarter of 2018 are 0,4 billion rubles that is 0,3 billion (-42,5%) less than by the same period in the previous year. The crucial factor of the cost saving is fall in infrastructural services’ costs due to decline in electricity exports to Georgia and Belorussia.

Administration costs increased by 0,2 billion rubles in comparison with the previous year (12,1%) and amount to 1,4 billion rubles. The crucial factor of the rise in costs is planned cost on the five-year vehicle maintenance.

Sales profits by for the first quarter of 2018 amount 0,7 billion rubles against the 0,6 billion rubles’ sales loss in the first quarter of 2017.

Interest receivable for the first quarter of 2018 has risen insignificantly against the same period in the previous year and amount to 1,2 billion rubles. Interest payable has risen by 0,4 billion rubles due to the mobilization of the short-term loans from the group assets.

The other profit\loss statement for the first quarter of 2018 amount to 0,2 billion rubles against minus 0,2 billion rubles in 2017. The main influence on that index was exerted by the loss\profits received by the difference in exchange due to the currency rate changes.

As a result the net profit for the first quarter of 2018 amount to 1,3 billion rubles against 0, 02 billion rubles in Q1 2017.

Balance sheet

Total assets of Inter RAO as of March 31st 2018 increased by 9,2 billion rubles (2,0%) as compared to December 31st 2017 and amount to 477, 3 billion rubles.

Non-current assets increased by 0,7 billion rubles (0,2%) and amount to 357,7 billion rubles.

Current assets as of Q1 2018 increased by 8,6 billion rubles (7,7%). The main reason to the change is the rise in funds placed in the short-term loans from the group assets compared to December 31st 2017.

The debt leverage as of March 31st 2018 is 36,6 billion rubles. Debt portfolio consists of the short-term loans from the group assets. Net liabilities of Inter RAO is minus 65, 1 billion rubles against minus 50,1 in the beginning of the year.

Total debt volume excluding short-term loans increased by 0,2 billion rubles (2,7%) compared to the beginning of the year and amounts to 9,2 billion rubles. The change is divergently attributed to the following factors: the fall in debt before the power suppliers and the simultaneous increase in advances due to the contracts signed and in the estimated liabilities of job compensation.

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Chugureti substation in central Tbilisi commissioned
Consolidated
financial statements
prepared according to
IFRS
for 1Q 2018
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 33.5 GW of installed power generation capacity.

www.interrao.ru