Friday, 14 May 2021 Inter RAO Group Consolidated Financial and Operating Results for 1Q of 2021.
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The Board of Directors of Inter RAO convenes the Annual General Meeting of Shareholders

Inter RAO Group Publishes IFRS Consolidated Financial Statements for 2020

1 March 2021
Indicator, billion rubles* 2020 2019 +/-

Revenue

986.3

1 032.1

-4.4%

Operating expenditures

915.1

945.9

-3.3%

Operating income

80.5

98.3

-18.1%

Net income

75.5

81.9

-7.9%

EBITDA

122.3

141.5

-13.6%

Capital expenditures

28.5

24.5

16.7%

 

Indicator, billion rubles* As of December 31, 2020 As of December 31, 2019 +/-

Total assets

865.2

751.0

15.2%

Total equity

616.1

552.8

11.5%

Loans and borrowings

3.1

3.3

-8.0%

Lease liabilities

91.8

57.5

59.6%

Net debt 1

-233.6

-196.5

18.9%

* — Financial indicators are provided based on these IFRS financial statements in billion rubles rounded to one decimal. Percentage ratios are calculated based on the data from the IFRS financial statements expressed in million rubles.

The changes in the Group's financial performance were significantly influenced by the following key factors and events:

  • A reduction in electricity exports and decrease in Nord Pool prices in the Group Trading Segment;
  • A slowdown in business due to restrictions introduced to combat the coronavirus spread;
  • Day-ahead market environment – loading of HPPs in the UES of Russia increased due to unloading of heat generation by the System Operator, as a result of increased inflow and water reserves;
  • A termination of capacity supply agreements for several generating facilities;
  • Weakening of the ruble against the U.S. dollar and euro.

CONSOLIDATED STATEMENT ON TOTAL INCOME

Group’s revenue decreased by 4.4% (45.8 billion rubles) and amounted to 986.3 billion rubles.

The decline in the indicator was mainly impacted by segments such as Trading in the Russian Federation and Europe and Electric Power Generation in the Russian Federation.

The revenue in the Trading in the Russian Federation and Europe Segment decreased by 23.2 billion rubles (30.7%) in comparison with the corresponding period of the previous year and amounted to 52.5 billion rubles for 2020.Sales volumes and prices decreased mainly in Finland and Lithuania due to abnormally low Nord Pool prices, which are related to the impact of the coronavirus pandemic on the European economies, warm winter in the Northern Europe, high output of renewable energy sources and, consequently, the supply exceeding the demand in 2020. A decrease in the ruble-euro exchange rate in 2020 made it possible to alleviate the impact of negative factors.

The decrease in revenue in the Electric Power Generation and Thermal Power Generation in the Russian Federation segments by 13.9 billion rubles (9.8%) and 3.6 billion rubles (4.6%) respectively, was related to climatic factors: high temperatures in winter 2019-2020 caused both a decline in power consumption and an increase in output in the hydropower industry due to record inflow of water to reservoirs. As a result, the supply on the wholesale electricity and capacity market increased significantly, and the prices on the day-ahead market decreased. Restrictions introduced to combat the coronavirus spread also had an adverse impact on electricity consumption volumes.

In the International Assets Segment, the revenue decreased by 1.2 billion rubles (5.0%) and amounted to 22.8 billion rubles. A shaping negative effect was related to the fact that Trakya Elektrik in Turkey generated no revenue due to termination of an agreement on plant operation in 2019. At the same time Moldavskaya SDPP showed good performance due to increased prices and supply volumes, and depreciation of the ruble.

In the Supply Segment, revenue increased by 1.5 billion rubles (0.2%) up to 694.9 billion rubles. Effect of an increase in sales premiums and productive supply to individuals was offset by a reduction in productive supply to legal entities in the conditions of restrictions imposed to combat the spread of the coronavirus.

Operating expenses decreased by 30.8 billion rubles (3.3%) as compared to the corresponding period of 2019 and amounted to 915.1 billion rubles.

The cost of purchased electricity and capacity decreased by 6.1 billion rubles (1.5%) as compared to the same period of the previous year and amounted to 408.1 billion rubles, as a result of both a reduction in electricity exports to Finland and Lithuania, and a reduction in prices on the wholesale electricity and capacity market.

Process fuel costs decreased by 14.8 billion rubles (11.9%) to 109.3 billion rubles, mainly due to a reduction in output of Inter RAO – Electric Power Plants Group in an unfavorable environment on the wholesale electricity and capacity market.

EBITDA amounted to 122.3 billion rubles, having decreased by 13.6% in comparison with 2019.

In the Trading in the Russian Federation and Europe Segment, EBITDA decreased by 10.1 billion rubles (56.6%) and amounted to 7.8 billion rubles in 2020. A decline in the indicator is related to a fall in prices and sales of electricity in Finland and Lithuania due to the unfavorable Nord Pool environment. Weakening of the ruble against the euro had a mitigating effect.

In the Electric Power Generation in the Russian Federation Segment, EBITDA decreased by 3.1 billion rubles (3.9%) and amounted to 76.3 billion rubles. The reduction is related to a decline in electricity output, and the decrease in capacity supply in the PSA sector in connection with termination of the PSA for unit No.3 of Kashirskaya SDPP and unit No.3 of Sochinskaya TPP. Moreover, actually paid capacity of unit No.1 of Yuzhnouralskaya SDPP-2 decreased due to maintenance and repair activities. At the same time, the average price for capacity supply increased due to applying the PSA payment delta for Yuzhnouralskaya SDPP-2, Cherepetskaya SDPP and Dzhubginskaya TPP.

In the Thermal Power Generation in the Russian Federation Segment, EBITDA increased by 0.3 billion rubles (1.6%) to 19.9 billion rublesdue to diverging changes. The increase in the indicator due to relabeling of Karmanovskaya SDPP starting from 1 January 2020 and recognizing the income from penalties was partially offset due to a decline related to expiration of the power supply agreement (PSA) at Tomskaya SDPP-2, and a reduction in the volume and selling price of electricity in the Omsk Region and Tomsk Region.

In the Sales in the Russian Federation Segment, EBITDA decreased by 1.4 billion rubles (5.4%) and amounted to 24.4 billion rubles. A positive effect of tariff and balance decisions for 2020 was offset by the high base effect, resulted from the improvement of paying capacity of some counterparties in 2019.

In the International Assets Segment, EBITDA decreased by 4.0 billion rubles (56.0%) in comparison with the corresponding period of the previous year and amounted to 3.1 billion rubles. The effects associated with the completion of the Trakya Elektrik project, and deteriorating performance of the Georgia segment resulted from the fact that purchased electricity prices grew faster than sale prices, were partially offset by the results of the Moldova segment, which improved due to increased prices and supply volumes in the context of depreciation of the ruble.

Net income decreased by 6.5 billion rubles (7.9%) in comparison with the corresponding period of the previous year and amounted to 75.5 billion rubles.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Total assets increased by 114.2 billion rubles (15.2%), amounting to 865.2 billion rubles.

Following the results of 2020, the Group's total assets increased both due to putting into operation power units No. 1, No. 2, and No. 3 of Primorskaya TPP and representing assets in the form of usufruct, and due to accumulated cash flow from operations. Besides, effects of agreements with General Electric aimed at increasing the level of  localization of Russian high-capacity gas turbines concluded in September 2020 were recognized.

Equity increased by 63.3 billion rubles (11.5%), amounting to 616.1 billion rubles.

Equity growth resulted from the recognition of net profit for the reporting period and was partially offset by the effect of distribution of dividends to shareholders.

Total loans and borrowings decreased by 8.0% to 3.1 billion rubles. Leasing obligations including the share in the joint ventures increased by 34.3 billion rubles and amounted to 91.8 billion rubles.

Total loans and borrowings of the Group decreased by 0.3 billion rubles (8.0%) to 3.1 billion rubles as a result of diverging effects from borrowings and repayment of those borrowed funds.

Growth in lease-related obligations by 34.3 billion rubles (59.6%) up to 91.8 billion rubles, with regard to the size of holdings in JVs, was mainly associated with leasing equipment of power units at Primorskaya TPP, put in service in the second half of 2020.

The ratio of long-term debt to short-term debt as of December 31, 2020 amounted to 8.6% against 91.4% (on December 31, 2019 – 14.3% against 85.7%).

1 Including deposits for a period from 3 to 12 months and lease liabilities (including the share of lease liabilities in joint ventures).

2 TGK-11 Group is represented by thermal power generating companies JSC TGK-11 (Omsk) and JSC Tomsk Generation, and heat distribution network operators JSC Tomsk RTS and JSC Omsk RTS.

Next material:

Inter RAO Group Announces Operating Results for the Full Year 2020
Consolidated
financial statements
prepared according to
IFRS
for 2020
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 31.1 GW of installed power generation capacity.

www.interrao.ru