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Inter RAO Group Announces Operating Results for the Full Year 2017

PJSC Inter RAO has released its financial statements under RAS for 2017

9 February 2018

PJSC Inter RAO has released its financial statements for 2017 prepared in accordance with the Russian Accounting Standards (RAS).

Indicator* 2017 2016 +/-
Revenue 41.0 43.2 -5.1%
Unit costs 32.9 31.7 3.8%
Gross profit 8,.1 11.5 -29.7%
Sales profit (loss) -0.7 2.6 -
Net profit 15.7 97.5 -83.9%
At 31 December 2017 At 31 December 2016
Total assets 468.1 437.9 6.9%
Total capital 430.3 430.0 0.1%
Loans and borrowings 28.9 0.0 -
Net debt** -50.1 -41.7 20.4%

* in billion rubles, unless stated 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 in 2017 was 41.0 billion rubles, down 2.2 billion rubles (5.1%) year on year.

Revenue from electricity export was 27.3 billion rubles, down 3.4 billion rubles (10.9%) year on year. This change is attributed mainly to a decrease in sales in physical indicators to Belarus (by 14.1%) and Finland (by 4.6%), and a decrease in the ruble equivalent of the sale price related to a reduced exchange rate in 2017 compared to 2016. Revenue from WECM electricity and capacity sales in 2017 was 13.2 billion rubles, up 3.5 billion rubles (36.5%) due to an increase in electricity import. Revenues from other sales in 2017 amounted to 0.4 billion rubles, a decrease of 2.4 billion rubles (84.8%) is due to the changes in the export supply schedule of power-generating equipment.

Cost of goods sold in 2017 was 32.9 billion rubles, which is 1.2 billion rubles (3.8%) higher than in 2016. This change reflects the influence of several factors including a 2.8 billion ruble (86.1%) increase in the cost of electricity import due to the increase in electricity import from Kazakhstan (110.4%), a reduction in other cost of sales by 2.0 billion rubles (88.2%) as part of implementation of projects on exporting power-generating equipment.

Gross profit in 2017 was 8.1 billion rubles compared to 11.5 billion rubles in 2016.

Selling costs in 2017 were 3.0 billion rubles, down 0.2 billion rubles (5.4%) year-on-year. The main factor contributing to lower selling costs is a decrease in transit payments including through the weaker dollar.

Administrative costs didn’t change much in 2017 compared to 2016 and amounted to 5.8 billion rubles.

Loss from sale in 2017 was 0.7 billion rubles compared to 2.6 billion rubles of profit from sale in 2016.

Income from share ownership in other companies changed by 13.3 times and amounted to 13.8 billion rubles due to the large amounts of dividend payments from other companies.

Interest receivable in 2017 was 3.5 billion rubles. The 2.2 billion rubles (38.0%) decline compared to 2016 is mainly related to the opposing effects of the following factors: an increase in deposits in the form of minimum balances on current accounts, a decrease of the deposit portfolio, repayment of loans and a change in the interest rate on loans granted to Group companies.

Balance of other income/expenses in 2017 was minus 2.9 billion rubles compared to 89.4 billion rubles in 2016. The main reason of this change compared to the previous year was the reporting in the financial statements of the one-time profit from the sale of a 40.007% ownership stake in PJSC Irkutskenergo, along with the fulfillment of obligations on the joint guarantee of an option agreement with SC Vnesheconombank.

As a result, the net profit for 2017 was 15.7 billion rubles, compared to 97.5 billion rubles for 2016.

Balance sheet

As of December 31, 2017, total assets of PJSC Inter RAO increased by 30.2 billion rubles (6.9%), to 468.1 billion rubles, compared to December 31, 2016.

Non-current assets decreased by 4.7 billion rubles (1.3%) to 357.0 billion rubles compared to the beginning of the year. The main driver of this change was a decrease of other non-current assets by 8.9 billion rubles (68.8%) to 4.0 billion rubles through debt service payments of long-term receivables and their reclassification into short-term receivables.

Current assets in 2017 increased by 34.8 billion rubles (45.7%) mainly due to the increase in the amount of money placed on short-term deposits in comparison to December 31, 2016, and also due to the increase of short-term receivables for dividends receivable.

As of December 31, 2017, the debt load amounted to 28.9 billion rubles. The debt portfolio is represented by short-term borrowed intra-group resources. The net debt of PJSC Inter RAO was -50.1 billion rubles compared to -41.7 billion rubles in the beginning of the year.

Total debt (excluding loans and borrowings) increased by 1.0 billion rubles (12.2%) compared to the beginning of the year and amounted to 8.9 billion rubles as of December 31, 2017 due to the increase in short-term current debt owed the terms of the concluded agreements.


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Guaranteeing suppliers of the Inter RAO Group published RAS financial statements for 2017
Consolidated
financial statements
prepared according to
IFRS
for the 9 months of 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