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Phone number for shareholders: 8–800–700–03–70
(JSC VTB Registrator, free call in Russia)
Bolshaya Pirogovskaya ulitsa, 27 building 2, Moskva, Russia, 119435  ·   +7 (495) 664–88–40   ·  office@interrao.ru

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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 Interim Consolidated Financial Statements for Q1 2020

22 May 2020

Indicator, billion rubles*

Q1 2020

Q1 2019

+/-

Revenue

266.9

281.4

-5.2%

Operating expenditures

237.8

246.5

-3.5%

Operating income

32.6

38.4

-15.1%

Net income

34.6

31.2

11.1%

EBITDA

41.4

47.6

-13.1%

Capital expenditures

3.0

7.9

-61.4%


Indicator, billion rubles*

As of March 31, 2020

As of December 31, 2019

+/-

Total assets

790.7

751.0

5.3%

Total equity

590.6

552.8

6.9%

Loans and borrowings

3.2

3.3

-4.3%

Lease liabilities

59.0

57.5

2.5%

Net debt1

-223.4

-196.5

13.7%

Unit greenhouse gas emissions in Q1 2020 decreased by 5%, while gross emissions decreased in proportion to output by 19%, compared to the similar period in 2019. The decline is mainly related to a type of operated equipment, and divestment of Ekubastuzskaya SDPP-2 of Inter RAO Group in December 2019.

* — 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.

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

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;
  • Day-ahead market environment: the supply exceeds the demand and the decline in prices;
  • Termination of power supply agreements on several generating facilities:
  • Increase in average end consumer sales prices in the Supply Segment of the Group.

CONSOLIDATED STATEMENT ON TOTAL INCOME

Group’s revenue decreased by 5.2% (14.5 billion rubles) and amounted to 266.9 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 9.7 billion rubles (47.5%) in comparison with the corresponding period of the previous year and amounted to 10.7 billion rubles in Q1 2020. Sales volumes and prices decreased considerably in Finland and Lithuania due to abnormally low Nord Pool prices, which are related to warm winter in the Northern Europe, high output of renewable energy sources and, consequently, the supply exceeding the demand in Q1 2020.

The decrease in revenue in the Electric Power Generation and Thermal Power Generation in the Russian Federation segments by 5.9 billion rubles (14.8%) and 1.1 billion rubles (4.1%) respectively, was related to climate: high temperatures in winter 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 market increased significantly, and the prices on the day-ahead market decreased.

In the International Assets Segment, the revenue decreased by 0.8 billion rubles (12.3%) and amounted to 5.4 billion rubles. A 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.

The Supply Segment demonstrated a revenue growth by 3.1 billion rubles (1.7%) to 188.4 billion rubles. The positive effect was made possible due to growth of average sale prices of providers of last resort for consumers, and due to customer base growth.

Operating expenses decreased by 8.7 billion rubles (3.5%) as compared to the corresponding period of 2019 and amounted to 237.8 billion rubles.

The cost of purchased electricity and capacity decreased by 3.9 billion rubles (3.4%) as compared to the same period of the previous year and amounted to 110.7 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 market.

Electricity transmission costs increased by 2.3 billion rubles (3.7%) to 63.4 billion rubles mainly due to the performance of enterprises in the Supply segment and was related to growth of power transmission tariffs.

Process fuel costs decreased by 5.1 billion rubles (14.9%) to 29.4 billion rubles.The main effect was in Inter RAO – Electric Power Plants Group and BGC Group due to a reduction in output in an unfavorable environment on the wholesale market for electricity and power.

EBITDA decreased by 13.1% as compared to Q1 2019 and amounted to 41.1 billion rubles.

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.

In the Electric Power Generation in the Russian Federation Segment, EBITDA decreased by 1.8 billion rubles (7.2%) to 23.3 billion rubles. The decrease in the indicator is related to the decline in electricity output, and to a reduction in capacity supply in the power supply agreement sector, due to termination of power supply agreements for unit No. 3 at Kashirskaya SDPP, and unit No. 3 at Sochinskaya TPP.

In the Thermal Power Generation in the Russian Federation Segment, EBITDA increased by 0.3 billion rubles (3.4%) to 9.3 billion rublesdue to diverging changes: growth of BGC group indicator due to an increase in the weighted average price for capacity sold in the power supply agreement sector, partially offset by a decrease in TGC-11 group, which was related to termination of the power supply agreements at Tomskaya SDPP-2, and a reduction in productive supply of heat.

In the Trading in the Russian Federation and Europe Segment, EBITDA decreased by 4.6 billion rubles (71.1%) and amounted to 1.9 billion rubles in Q1 2020. A considerable 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.

In the Supply in the Russian Federation Segment, EBITDA increased by 1.0 billion rubles (14.2%) and amounted to 8.0 billion rubles. The positive effect was made possible due to growth of sale prices and customer base growth.

In the International Assets Segment, EBITDA decreased by 1.0 billion rubles (78.6%) in comparison with the corresponding period of the previous year and amounted to 0.3 billion rubles. The effects associated with the completion of the Trakya Elektrik project, as well as the negative impact of the outcomes in the Georgia segment, which worsened due to the fact that purchased electricity prices grew faster than sale prices, were partially offset by the growth in the Moldova segment due to increased prices and supply volumes.

When EBITDA was declining, the Group's net profit grew against a comparable period by 3.4 billion rubles to 34.6 billion rubles, mainly due to positive exchange rate differences resulting from US dollar and euro growth against the ruble in Q1 2020.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Total assets increased by 39.7 billion rubles (5.3%), amounting to 790.7 billion rubles.

Following the results of Q1 2020, the Group's total assets increased due to the accumulation of the cash flow from operating activities. In addition, trade receivables increased, and reasons for that included the fact that settlements on the wholesale electricity market were transferred from March to April.

Equity increased by 37.9 billion rubles (6.9%), amounting to 590.6 billion rubles.

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

Total loans and borrowings decreased by 4.3% to 3.2 billion rubles. Leasing obligations including the share in the joint ventures increased by 1.4 billion rubles and amounted to 59.0 billion rubles.

Total loans and borrowings of the Group decreased by 0.1 billion rubles (4.3%) to 3.2 billion rubles as a result of diverging effects from borrowings and repayment of those borrowed funds.

Growth in lease-related obligations by 1.4 billion rubles (2.5%), with regard to the size of holdings in JVs, was mainly associated with leasing equipment of unit No.4 at Pregolskaya TPP, which was additionally put into operation in Q1 2020.

The ratio of long-term debt to short-term debt as of March 31, 2020 amounted to 31.4% against 68.6% (on December 31, 2019 – 14.3% against 85.7%).


Next material:

PJSC Inter RAO Holds the Annual General Shareholders' Meeting
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