Friday, 14 May 2021 Inter RAO Group Consolidated Financial and Operating Results for 1Q of 2021.
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Inter RAO Group Publishes IFRS Interim Consolidated Financial Statements for the First Nine Months of 2020

13 November 2020
Indicator, billion rubles* 9 months of 2020 9 months of 2019 +/-

Revenue

713.0

753.8

-5.4%

Operating expenditures

662.2

686.6

-3.6%

Operating income

58.1

77.1

-24.7%

Net income

57.4

64.7

-11.4%

EBITDA

86.6

105.9

-18.3%

Capital expenditures

18.9

15.2

24.8%

 

Indicator, billion rubles* As of September 30, 2020 As of December 31, 2019 +/-

Total assets

809.6

751.0

7.8%

Total equity

599.4

552.8

8.4%

Loans and borrowings

3.2

3.3

-4.1%

Lease liabilities

85.4

57.5

48.4%

Net debt 1

-192.0

-196.5

-2.3%

* — 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;
  • A slowdown in business due to restrictions introduced to combat the coronavirus spread;
  • Day-ahead market environment, which is related to increased inflow and water reserves, loading of HPPs in the UES of Russia due to unloading of heat generation by the System Operator;
  • A termination of capacity supply agreements for several generating facilities.

CONSOLIDATED STATEMENT ON TOTAL INCOME

Group’s revenue decreased by 5.4% (40.8 billion rubles) and amounted to 713.0 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 19.5 billion rubles (35.3%) in comparison with the corresponding period of the previous year and amounted to 35.7 billion rubles for the nine months of 2020.Sales volumes and prices decreased considerably 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 9M of 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 13.0 billion rubles (12.4%) and 4.7 billion rubles (8.5%) 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 and capacity market increased significantly, and the prices on the day-ahead market decreased. Moreover, a decrease in electricity consumption resulted from imposition of restrictions introduced to combat the coronavirus spread.

In the International Assets Segment, the revenue decreased by 1.7 billion rubles (9.2%) and amounted to 16.8 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.

In the Supply Segment, revenue increased by 1.8 billion rubles (0.4%) up to 508.2 billion rubles due to the increase in sales premiums and productive supply to individuals taking into account a reduction in productive supply to legal entities in the conditions of restrictions to combat the spread of the coronavirus.

Operating expenses decreased by 24.4 billion rubles (3.6%) as compared to the corresponding period of 2019 and amounted to 662.2 billion rubles.

The cost of purchased electricity and capacity decreased by 8.3 billion rubles (2.7%) as compared to the same period of the previous year and amounted to 293.5 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 14.1 billion rubles (15.5%) to 76.9 billion rubles.The main effect was in Inter RAO – Electric Power Plants Group due to a reduction in output in an unfavorable environment on the wholesale electricity and capacity market.

EBITDA decreased by 18.3% as compared to 9M of 2019 and amounted to 86.6 billion rubles.

In the Trading in the Russian Federation and Europe Segment, EBITDA decreased by 8.7 billion rubles (64.4%) and amounted to 4.8 billion rubles in 9M of 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. Meanwhile, appreciation of the euro against the ruble had a mitigating effect.

In the Electric Power Generation in the Russian Federation Segment, EBITDA decreased by 4.2 billion rubles (7.1%) and amounted to 55.0 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, and the reduction in the actually paid capacity of unit No.1 of Yuzhnouralskaya SDPP-2 due to unscheduled repairs. At the same time, the average price for capacity supply due to applying the PSA payment delta for Yuzhnouralskaya SDPP-2, Cherepetskaya SDPP and Dzhubginskaya TPP to the capacity price increased.

In the Thermal Power Generation in the Russian Federation Segment, EBITDA increased by 0.3 billion rubles (2.1%) to 13.5 billion rublesdue to diverging changes. Growth of the BGC Group's indicator, which was formed due to an increase in the weighted average price for the realized capacity of Zatonskaya TPP in the capacity supply agreement sector in the context of electricity output reduction at Karmanovskaya SDPP, was partially offset by a decrease in TGC-11 group, which was related to termination of the capacity supply agreements at Tomskaya SDPP-2, and a reduction in productive supply of heat.

In the Sales in the Russian Federation Segment, EBITDA decreased by 0.3 billion rubles (1.4%) and amounted to 17.8 billion rubles due to various factors. A positive effect of tariff and balance decisions for 2020 was offset by the high base effect: the improvement of paying capacity of some counterparties in 2019.

In the International Assets Segment, EBITDA decreased by 3.5 billion rubles (56.4%) in comparison with the corresponding period of the previous year and amounted to 2.7 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.

Net income decreased by 7.4 billion rubles (11.4%) in comparison with the corresponding period of the previous year and amounted to 57.4 billion rubles.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Total assets increased by 58.6 billion rubles (7.8%), amounting to 809.6 billion rubles.

During the nine months of 2010, the Group's total assets increased both due to putting into operation two power unit of Primorskaya TPP (the Kaliningrad Region) in the third quarter of 2020 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 gas turbines concluded in September 2020 were regognized.

Equity increased by 46.6 billion rubles (8.4%), amounting to 599.4 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 4.1% to 3.2 billion rubles. Leasing obligations including the share in the joint ventures increased by 27.9 billion rubles and amounted to 85.4 billion rubles.

Total loans and borrowings of the Group decreased by 0.1 billion rubles (4.1%) 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 27.9 billion rubles (48.4%), with regard to the size of holdings in JVs, was mainly associated with leasing equipment of two constructed units at Primorskaya TPP.

The ratio of long-term debt to short-term debt as of September 30, 2020 amounted to 24.9% against 75.1% (on December 31, 2019 – 14.3% against 85.7%).

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 Nine Months of 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