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The Board of Directors of PJSC Inter RAO Elects the Chairman and the Deputy Chairman of the Board

Inter RAO Group Publishes IFRS Consolidated Financial Statements for the First Quarter of 2021

28 May 2021
Indicator, billion rubles* Q1 2021 Q1 2020 +/-

Revenue

310.5

266.9

16.3%

Operating expenditures

270.5

237.8

13.7%

Operating income

41.7

32.6

28.1%

Net income

34.5

34.6

-0.3%

EBITDA

50.0

41.4

20.8%

Capital expenditures

4.4

3.0

44.4%

Indicator, billion rubles* As of March 31, 2021 As of December 31, 2020 +/-

Total assets

884.0

865.2

2.2%

Total equity

650.9

616.1

5.6%

Loans and borrowings

2.9

3.1

-4.8%

Lease liabilities

93.9

91.8

2.2%

Net debt 1

-239.8

-233.6

-

* — 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 considerable growth of electricity exports and increase in Nord Pool prices in the Group Trading Segment;
  • Consumption growth in the Group Supply Segment;
  • Day-ahead market environment caused by lowering average temperatures and decrease of water flow into reservoirs in comparison with the high base of the last year;
  • Application of the PSA payment delta for several generating facilities;
  • Weakening of the ruble against the U.S. dollar and euro.

CONSOLIDATED STATEMENT ON TOTAL INCOME

Group’s revenue increased by 16.3% (43.6 billion rubles) and amounted to 310.5 billion rubles.

An increase in the indicator was mainly impacted by segments such as Trading in the Russian Federation and Europe Segment and the Supply Segment.

The revenue in the Trading in the Russian Federation and Europe Segment increased by 18.4 billion rubles (172.5%) in comparison with the corresponding period of the previous year and amounted to 29.1 billion rubles in Q1 2021.Sales volumes and prices increased mainly in Finland and the Baltic States due to favorable pricing environment on Nord Pool, which was related to lowering temperatures and deterioration of water-resources balance. Strengthening of the euro against the ruble in the current quarter generated an additional impact.

The increase in revenue in the Electric Power Generation and Thermal Power Generation in the Russian Federation segments by 7.2 billion rubles (21.2%) and 3.0 billion rubles (12.0%) respectively, was related to climatic factors: lower ambient air temperatures caused an increase in power and heat consumption which, in turn, caused an increase in consumption on the wholesale electricity and capacity market. Besides, the capacity revenue increased due to applying the PSA payment delta for Yuzhnouralskaya SDPP-2, Permskaya SDPP and Verkhnetagilskaya SDPP.

In the International Assets Segment, the revenue increased by 1.2 billion rubles (22.7%) and amounted to 6.6 billion rubles. The growth of the indicator was related to assets in Georgia, where electricity prices were increased in 2021, and to growth of supplies from Moldavskaya SDPP and weakening of the average RUB/USD exchange rate.

In the Supply Segment, revenue increased by 16.3 billion rubles (8.6%) up to 204.7 billion rubles. The positive effect was related to the increase in supply at lower average monthly temperatures, and the increase in marketing charges.

Operating expenses increased by 32.7 billion rubles (13.7%) as compared to the corresponding period of 2020 and amounted to 270.5 billion rubles.

The cost of purchased electricity and capacity increased by 19.5 billion rubles (17.6%) as compared to the same period of the previous year and amounted to 130.2 billion rubles, as a result of both an increase in supply volumes to consumers of the Supply Segment, and an increase in prices on the wholesale electricity and capacity market.

Process fuel costs increased by 7.2 billion rubles (24.6%) to 36.7 billion rubles, mainly due to an increase in electricity output.

EBITDA amounted to 50.0 billion rubles, having increased by 20.8% in comparison with the first quarter of 2020.

In the Trading in the Russian Federation and Europe Segment, EBITDA increased by 4.9 billion rubles (3.6 times) and amounted to 6.8 billion rubles in Q1 2021. Supplies to Finland and the Baltic states increased considerably due to favorable Nord Pool prices, which were formed due to recovery in energy consumption, including due to lower air temperatures, deterioration in water balance, decline in power generation at wind farms, and growth of prices for energy sources and CO2 emission quotations.

In the Electric Power Generation in the Russian Federation Segment, EBITDA increased by 4.2 billion rubles (18.2%) and amounted to 27.6 billion rubles. Positive result was achieved through an increase in electricity output, and capacity price increase due to application the PSA payment delta for several generating facilities.

In the Thermal Power Generation in the Russian Federation Segment, EBITDA increased by 1.2 billion rubles (13.1%) and amounted to 10.5 billion rubles both due to growth of productive supply of heat due to lower average air temperatures compared to a similar period, and due to growth of prices for electricity on the day-ahead market, under the impact of demand growth which exceeds the growth of supply.

In the Sales in the Russian Federation Segment, EBITDA decreased by 2.0 billion rubles (24.7%) and amounted to 6.0 billion rubles, which is due to the high base of the previous period (Q1 2020, when there was no impact of the pandemic), energy consumption structure and regulation (the need for purchase of part of electricity by suppliers of last resort on the wholesale market at higher prices due to the fact that electricity consumption by population at RD prices was exceeded (the impact of the pandemic and lower air temperatures).

In the International Assets Segment, EBITDA increased by 0.7 billion rubles (3.6 times) in comparison with the corresponding period of the previous year and amounted to 1.0 billion rubles. The major contributor to the increase was the Georgia segment due to a growth of electricity sales prices from 2021. The Moldova segment experienced positive dynamics due to an increase in the average U.S. dollar/ruble exchange rate.

Net income remained virtually unchanged in comparison with the corresponding period of the previous year, having decreased by 0.1 billion rubles (0.3%) and amounted to 34.5 billion rubles.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Total assets increased by 18.8 billion rubles (2.2%), amounting to 884.0 billion rubles.

Following the results of Q1 2021, the Group's total assets increased both due to an increase of trade receivables caused by consumption growth and poor payment discipline, and due to the accumulation of the cash flow from operating activities.

Equity increased by 34.8 billion rubles (5.6%), amounting to 650.9 billion rubles.

Equity growth resulted from the recognition of net profit for the reporting period.

Total loans and borrowings decreased by 4.8% to 2.9 billion rubles. Leasing obligations including the share in the joint ventures increased by 2.0 billion rubles and amounted to 93.9 billion rubles.

Total loans and borrowings of the Group decreased by 0.1 billion rubles (4.8%) to 2.9 billion rubles as a result of diverging effects from borrowings and repayment of those borrowed funds.

Growth in lease-related obligations by 2.0 billion rubles (2.2%) up to 93.9 billion rubles, with regard to the size of holdings in JVs, was mainly associated with an update of lease obligations assessments with account taken of current macroeconomic and methodological parameters.

The ratio of long-term debt to short-term debt as of March 31, 2020 amounted to 16.6% against 83.4% (on December 31, 2020 – 8.6% against 91.4%).

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:

The Annual General Meeting of Shareholders of PJSC Inter RAO took place
Consolidated
financial statements
prepared according to
IFRS
for 1Q of 2021
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 30.8 GW of installed power generation capacity.

www.interrao.ru