IR Releases
Rosseti Lenenergo released FY 2019 RAS Results on February 22, 2020
Rosseti Lenenergo (Registered Name: PJSC Lenenergo) Publishes Its RAS Financial Statements for 2019
Key Results in the Reporting Period
millions of Russian rubles unless otherwise stated
Indicator |
2019 |
2018 |
Change |
Financial Results |
|
|
|
Revenue |
82,371 |
76,450 |
7.7% |
electricity distribution |
75,696 |
68,807 |
10.0% |
network connection |
6,242 |
7,066 |
-11.7% |
other |
433 |
577 |
-25.0% |
Cost of sales |
58,279 |
57,252 |
1.8% |
Gross profit |
24,092 |
19,198 |
25.5% |
Net profit |
12,705 |
10,386 |
22.3% |
EBITDA |
30,546 |
26,328 |
16.0% |
EBITDA margin |
37.08 |
34.44 |
2.64 pp |
Operating Results | |||
Installed capacity, MVA |
33,381 |
32,216 |
3.6% |
Connected capacity, MW |
893.4 |
1,032.5 |
-15.5% |
Net supply, mn kWh |
30,625 |
30,560 |
0.2% |
Lenenergo electricity network losses, mn kWh |
3,967 |
4,162 |
-4.7% |
Notes:
EBITDA: Earnings Before Interest, Tax, Depreciation and Amortization, less Reserve Balance for Impairment of Financial Investments.
“The Company made a profit of 12.7 billion rubles in 2019, which is a 1.2-fold increase on our year-ago profit. This is primarily due to a rise in revenue from electricity distribution. The high operating results allowed us to continue our efforts to reduce the debt burden and improve the equity ratio.”
- Aleksey Polinov
Deputy CEO, Economic Affairs and Finance
Lenenergo
Notes to the Operating Results
Net electricity supply increased by 0.2% in 2019 on 2018, largely due to:
■ Higher household consumption, with industrial consumption remaining the same as in 2018.
The decrease of 0.52 percentage points in electricity losses is due to carrying out the electricity loss reduction program, which includes measures to modernize the electricity metering system and detect unbilled and noncontractual electricity consumption.
Notes to the Financial Results
PJSC Lenenergo (“Rosseti Lenenergo”) posted revenue of 82,371 million rubles in 2019, including:
75,696 million rubles of electricity distribution revenue in 2019, or an increase of 10.0% (6,889 million rubles) on 2018, due to a rise in electricity consumption and higher tariffs resulting from regional regulators providing compensation for accumulated lost income and lost tariff-based revenue (“smoothing mechanism”).
6,242 million rubles of network connection revenue in 2019, or 11.7% (824 million rubles) lower than in the prior year, due to the fulfillment of obligations to large requesting entities in 2018, including providing an electricity connection for the Lakhta Center multifunctional complex.
433 million rubles of other revenue in 2019, or 25.0% (144 million rubles) lower than in 2018, mainly because of decreased grid equipment maintenance services resulting from the transfer of Saint Petersburg Power Grid’s street lighting facilities to Lensvet under an equipment swap contract.
Rosseti Lenenergo’s cost of sales totaled 58,279 million rubles in the reporting period, or 1.8% (1,027 million rubles) up on 2018, largely due to increases in depreciation and amortization, expenses associated with FGC UES services, and electricity purchased for compensation for electricity losses alongside lower prices of electricity distribution services provided by outside territorial grid organizations.
Rosseti Lenenergo earned a net profit of 12,705 million rubles in the reporting period, or 22.3% up on the prior year, because of a rise in revenue from electricity distribution services.
Rosseti Lenenergo posted EBITDA of 30,546 million rubles in the reporting period, which is a 16.0% increase on the year-earlier period, primarily due to a rise in revenue from electricity distribution services.
Principal Balance Sheet Figures
millions of Russian rubles unless otherwise stated
Indicator |
2019 |
2018 |
Change |
Assets |
|
|
|
Non-current assets |
211,611 |
198,386 |
6.7% |
Current assets |
15,185 |
16,334 |
-7.0% |
Total assets |
226,796 |
214,720 |
5.6% |
Net assets |
151,068 |
139,702 |
8.1% |
ROE |
8.41 |
7.43 |
0.98 pp |
Equity and Liabilities |
|
|
|
Equity and reserves |
151,068 |
139,702 |
8.1% |
Non-current liabilities |
29,890 |
42,038 |
-28.9% |
Current liabilities |
45,838 |
32,980 |
39.0% |
Total liabilities |
75,728 |
75,018 |
0.9% |
Net debt |
20,924 |
29,016 |
-27.9% |
Net debt/EBITDA for 4 quarters |
0.69 |
1.10 |
- |
|
|
|
|
Notes:
ROE is calculated as (Net Profit [for 4 quarters] / Equity) * 100
Rosseti Lenenergo’s assets totaled 226,796 million rubles as at December 31, 2019, or 5.6% higher than at year end 2018. Assets changed due to the Company implementing the capex program and receiving a positive financial result in the reporting period. Net assets grew by 11,366 million rubles (8.1%) in 2019.
Rosseti Lenenergo posted ROE of 8.41%, or 0.98 percentage points higher than in 2018. ROE improved because of a rise in the Company’s net profit.
Rosseti Lenenergo’s loan portfolio, composed of short-term and long-term loans and borrowings, totaled 28,214 million rubles as at the end of the reporting period.
Rosseti Lenenergo’s net debt/EBITDA was 0.69x as at December 31, 2019, as against 1.10x at year end 2018.
Investment
millions of Russian rubles unless otherwise stated
Indicator |
2019 |
2018 |
Change |
Capital investment, mn RUB, exclusive of VAT |
26,135 |
20,722 |
26% |
Commissioned fixed assets, mn RUB |
23,997 |
23,265 |
3% |
Commissioned capacity, MVA |
1,078 |
1,031 |
5% |
Commissioned capacity, km |
2,294 |
1,900 |
21% |
Notes:
Capital investment totaled 26,135 million rubles in the reporting period, or 26% higher than a year earlier (20,722 million rubles). The value of commissioned fixed assets reached 23,997 million rubles, or 3% higher than in 2018 (23,265 million rubles).
Capital investment in 2019 increased on 2018 due to a larger scope of work on technical upgrading and rehabilitation.