A meeting of the Company’s Board of Directors was held on 31
December 2019, which approved the Company’s Business Plan for 2020
and forecast indicators for 2021-2024. The scenario conditions for
the formation of the Business Plan for 2020 provide for indexation of
tariffs for electric energy transmission services not higher than the
forecast inflation, increase in labour productivity by at least 2%,
decrease in the level of specific operating expenses by at least 2%,
as well as indicators of dividend policy in accordance with Order of
the Government of the Russian Federation dated 29.05.2017 ¹ 1094-r.
Indicators of the Company’s Business Plan for
2020:
Data in bln RUB, unless specified otherwise
Indicators
|
Planned for
2020
|
Expected fact for 2019
|
Change
|
Revenue (total), including:
|
96,2
|
95,1
|
1,2%
|
Revenue from electric energy transmission
|
92,9
|
91,0
|
2,1%
|
Revenue from grid connection
|
1,2
|
1,5
|
-20,0%
|
Revenue from the reconstruction of electric grid facilities
|
0,3
|
0,8
|
-62,5%
|
Revenue from other activity
|
1,8
|
1,8
|
-
|
Cost of sales
|
87,8
|
85,9
|
2,2%
|
Sales profit1
|
6,1
|
6,9
|
-11,6%
|
Sales profit margin, %
|
6,3
|
7,3
|
-1,0 p.p.
|
EBITDA2
|
18,1
|
17,93
|
1,1%
|
EBITDA margin, %
|
18,8
|
18,8
|
-
|
Net profit
|
2,0
|
1,93
|
5,3%
|
Net profit margin, %
|
2,1
|
2,0
|
0,1 p.p.
|
Amount of electric energy transmitted, billion kWh
|
46,2
|
46,3
|
-0,2 %
|
Electric energy losses, %
|
9,83
|
10,55
|
-0,72 p.p.
|
[1] Revenue net of cost of
sales, selling and administrative expenses
[2] EBITDA is calculated as
follows: net profit + profit tax and other similar mandatory payments
+ interest payable + depreciation charges
[3] The expected indicators
for 2019 are shown without taking into account the creation of
unplanned estimated reserves
Planned revenues for electric energy transmission
services in the framework of the Business Plan for 2020 is 2,1%
higher than the expected fact of 2019, which is due to changes in
tariffs for electricity transmission services. The projected revenue
from grid connection services in 2020 is expected to be 1,2 bln RUB,
which is 20,0% lower than the planned revenue for 2019. The decrease
in the revenue is due to implementation of a number of large grid
connection contracts in 2019. In 2020 the Company predicts revenue
from other activities in the amount of at least 1,8 bln RUB, which
corresponds to the expected fact of 2019.
The increase of cost of sales relative to the
expected fact of 2019 is mainly due to rising prices for purchased
electricity to compensate for losses, costs of services of grid
organizations and other uncontrolled expenses.
Earnings before interest, taxes, depreciation and
amortization (EBITDA) are projected above the expected fact of 2019
and will be 18,1 bln RUB. A negative impact on the financial result
may be exerted by the realization of the risk of an increase in
arrears for services rendered by the company. The positive factors
for the financial results of the company may be exceeding the
forecast for the volume of services for the electricity transmission
and results of the implementation of the cost management program
exceeding the forecast. Net profit for 2020 is projected at 2,0 bln
RUB.
The projected value of the volume of electric
energy transmission services, according to the Business Plan for
2020, will decrease by 0,2% and will be 46,2 billion kWh. The size of
planned relative value of losses in 2020 is lower than the expected
fact in 2019 by 0,72 p.p. and is 9,83%. The reduction in losses in
2020 compared with the expected fact in 2019 is due to the planned
implementation of measures to reduce losses, including the
performance of work by energy service companies.
Other IR-news of the Company can be found at:
https://www.mrsk-1.ru/en/investors/presentations/ir_news/.
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