In 2017, revenue of PJSC Lenenergo increased by 22% Y-o-Y to RUB 74,682 mln. EBITDA for the reporting period amounted to RUB 28,531 mln (+32%). Net profit in 2017 totaled RUB 12,561 mln (+66%). 

In RUB mln, unless otherwise specified

Notes on the calculation of indicators:

EBITDA is reported net of the balance of provision for impairment of debt financial investments. EBITDA = Net profit + Income tax + Depreciation + Interest payable – balance of provision for impairment of debt financial investments.
The amount of debt on loans and credits is reported including the interest (sum of lines 1410 and 1510 of the balance sheet).
Net debt is calculated as the sum of credits and loans net of cash and short-term financial investments.
ROE is calculated as follows: (Net profit /Equity)*100

Performance of PJSC Lenenergo according to results of 2017 was affected by entering into contracts for the lease of electricity grid property with JSC St. Petersburg Electrical Networks and JSC Petrodvortsovaya Power Grid from 01.04.2017 within the framework of optimisation of business processes in PJSC Lenenergo group of companies. 

Revenue

Sales revenue for 2017 amounted to RUB 74,682 mln; the growth amounted to RUB 13,422 mln or 21.9% compared to 2016.

·           Revenue from electricity transmission services

The increase of revenue from the provision of electricity transmission services compared to 2016 is caused by the growth of tariff rates in 2017 and including in the volume of productive electricity supply of consumers on former area of activities of JSC St. Petersburg Electrical Networks.

·           Revenue from technological connection services

The growth of revenue from the provision of technological connection services compared to 2016 is caused by the fulfilment of obligations in 2017 in excess of planned level as well as by fulfilment of obligations under technological connection contracts entered into by JSC St. Petersburg Electrical Networks and JSC Petrodvortsovaya Power Grid.

·           Revenue from other activities

Revenue from other operations increased due to entering into contracts for operational maintenance of electric grid property of JSC St. Petersburg Electrical Networks and JSC Petrodvortsovaya Power Grid.

Cost

According to results of 2017, cost of provided services increased by RUB 4,731 mln or 9.6% compared to 2016.

In RUB mln, unless otherwise specified

Controlled expenses of the Company increased due to the reduction of expenses for payment of services provided by cooperating grid operators. Expenses for loss compensation and services of PJSC FGC of UES also increased, among other things, due to including of expenses on former area of activities of JSC St. Petersburg Electrical Networks.

Financial results

Gross profit of PJSC Lenenergo for 2017 amounted to RUB 20,765 mln what is higher by RUB 8,691 mln or 72.0% than this indicator for the same period of the last year – due to the growth of revenue to a greater extent than the growth of the cost of services.

According to results of 2017, net profit of the Company amounted to RUB 12,561 mln. The financial result increased by RUB 5,000 mln or 66.1% compared to the same period of 2016.

EBITDA

EBITDA for 2017 amounted to RUB 28,531 mln and increased by RUB 6,870 mln and 31.7% compared to 2016.

EBITDA margin for 2017 amounted to 38.2% what is higher by 2.84 per cent points than this indicator for 2016.

Calculation of EBITDA, RUB mln

Note:

EBITDA is reported net of the balance of provision for impairment of debt financial investments. EBITDA = Net profit + Income tax + Depreciation + Interest payable – balance of provision for impairment of debt financial investments.

Credit portfolio and debt position

Credits and loans

The Company’s debt (including interest debt) as at 31.03.2017 amounted to RUB 36,925 mln what is higher by RUB 4,621 mln or 14.3% than this indicator as at the beginning of the year, including principal debt – by RUB 4,684 mln or 14.6%; interest debt reduced by RUB 63 mln or 68.7% compared to the beginning of the year.

The increase of principal debt compared to the beginning of the year is caused by obtaining of credits to finance the investment program in 2017.

Interest debt reduced due to reduction of interest rate on exchange-traded bonds series BO-05 according to results of completion of offers on 23.01.2017 and 24.07.2017 as well as due to work for optimization of credit portfolio in 2017 and minimization of debt expenses in the form of refunding of credits with a higher interest rate by credit with a lower interest rate.

Net debt  

The increase of net debt of PJSC Lenenergo compared to the level of 2016 amounted to RUB 10,199 mln, together with the rise of the Company’s debt by RUB 4,621 mln – due to obtaining of credits in 2017 to finance the investment program as well as reduction of cash balance. As at 31.12.2017, ratio Net debt/EBITDA amounted to 1.21.

Investments

The volume of capital investments in 2017 amounted to RUB 28,203 mln what is higher by 27.0% than this indicator for 2016 and is caused by:

- implementation of measures for completion of works at facilities in the Leningrad Region construction of which was commenced in 2016;

- implementation of measures for ensuring technological connection of the applicants, including metro facilities;

- performance of works on 0.4-10 kV distribution network within the framework of preparation to FIFA Confederations Cup and 2018 FIFA World Cup;

- including in PJSC Lenenergo investment program of measures from investment programs of JSC SPb EN and JSC PPG.

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