According to the prepared in accordance with the Russian Accounting Standards statements for 6 months of 2023, revenue of Rosseti Centre, PJSC (the ticker – MRKC) was 59 967,4 mln RUB, including from electric energy transmission – 56 316,1 mln RUB, from grid connections – 1 636,8 mln RUB, from sale of electric energy and power – 341,1 mln RUB and other revenue – 1 673,4 mln RUB. Sales profit1 was 8 849,6 mln RUB. Earnings before interest, taxes, depreciation and amortization (EBITDA²) reached 14 713,3 mln RUB. Net profit increased by 57,2% up to 5 112,6 mln RUB.

Data in million RUB, unless specified otherwise

^[1] Revenue net of cost of sales, selling and administrative expenses

^[2] EBITDA is calculated as follows: Profit before tax + Interest payable + Depreciation

^[3] Net debt is calculated as follows: long-term borrowed funds + short-term borrowed funds – cash and cash equivalents – short-term financial investments

^[*] Taking into account the volume of services for the transmission of electricity in the territory of execution of the functions of the electricity supplier of last resort in the Tver region in the service area of JSC Transservisenergo

The volume of services for the transmission of electricity amounted to 23 749,7 million kWh. Compared to the same period last year, there was a decrease in the volume of services by 1,3%, which is mainly due to changes in the power consumption modes of large consumers, as well as the climatic factor due to fluctuations in air temperature compared to the same period last year. As a result of comprehensive work to reduce electricity losses, their level decreased to 10,16% (by 0,10 p.p.).

Revenue for electricity transmission services for 6 months of 2023 increased by 13,0% compared to the same period in 2022 due to the indexation of tariff rates for electricity transmission services from 1 July and 1 December 2022. According to the results of 6 months of 2023, revenue from grid connection services increased by 74,5% compared to the same period in 2022 due to the execution of major grid connection contracts in the Voronezh, Kursk and Lipetsk regions, as well as as a result of a change in pricing of preferential categories of applicants from 1 July 2022. Other revenue for 6 months of 2023 increased by 30,7% compared to the same period last year, due to an increase in the volume of services for maintenance of outdoor lighting networks, performance of work within the competence of the applicant, in implementation of grid connection, improvement services, as well as other additional services that increase non-tariff sources of income.

Expenses attributable to cost of sales increased by 11,8% compared to 1H 2022 (up to 50 301,0 mln RUB). The main growth was due to an increase in the cost of purchasing electricity to compensate for losses and for services for the transmission of electricity through grids of the Unified National Power Grid, as well as indexation of employees’ salaries.

The EBITDA² indicator increased by 14,1% and amounted to 14 713,3 mln RUB, the EBITDA margin remained at the same level compared to the same period last year and amounted to 24,5%. The net profit reached a historical maximum based on the results of work for 6 months and amounted to 5 112,6 mln RUB, at the same time, the net profit margin increased to 8,5%.

The Company’s total assets as of 30 June 2023 amounted to 139 485,4 mln RUB (as of 31 December 2022 – 140 848,0 mln RUB). The Company’s net assets grew up by 8,3% and amounted to 59 848,4 mln RUB. The net debt3 increased compared to 31 December 2022 and amounted to 33 454,8 mln RUB.

The Company’s statements for 6 months of 2023 can be found at: https://mrsk-1.ru/en/information/statements/rsbu/2023/.