According to the prepared in accordance with the Russian Accounting Standards statements for 1Q 2024, revenue of Rosseti Centre, PJSC (the ticker – MRKC) was 33 891,9 mln RUB, including from electric energy transmission – 32 221,5 mln RUB, from grid connections – 871,8 mln RUB and other revenue – 798,6 mln RUB. Sales profit was 5 466,9 mln RUB. Earnings before interest, taxes, depreciation and amortization (EBITDA²) increased by 6,1% up to 8 981,7 mln RUB. Net profit amounted to 3 213,8 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 electricity transmission services was 13 474,4 million kWh. Compared to the same period last year, there was an increase in the volume of services by 5,1%, which is mainly due to changes in the power consumption patterns of large consumers, as well as the climatic factor due to fluctuations in ambient temperature relative to the same period last year. The result of the implementation of a set of organizational and technical measures was a reduction in the level of electricity losses to 11,77% of supply to the grid (by 0,05 p.p.).

The revenue from electricity transmission services in the 1st quarter of 2024 increased by 5,4% compared to the same period in 2023 due to an increase in electricity consumption in the regions of presence and an increase in tariffs approved by the Regulator in the regions of the Company’s operation. The revenue from grid connection services for 3 months of 2024 increased by 4,8% compared to the same period in 2023 due to growth in revenue in the category up to 150 kW.

The other revenue increased by 1,9% and amounted to 798,6 mln RUB. The increase in revenue from the sale of other activities in the 1st quarter of 2024 compared to the 1st quarter of 2023 was due to completion of large projects, including the reconstruction of the Company’s power grid facilities at the initiative of third parties.

The cost of sales increased relative to the 1st quarter of 2023 by 6,4% and amounted to 28 020,7 mln RUB. The increase in the costs is mainly due to inflationary pressure, an increase in the tariff rate for electric energy transmission services for maintenance of electric grid facilities and the volume of electricity transmission in the UNPG grid, an increase in individual tariffs and the volume of electricity transmission through networks of third-party territorial grid organizations.

The Company is making every effort to maintain operational efficiency and financial stability, which allowed it to achieve a positive financial result in the 1st quarter of 2024. The EBITDA² margin increased slightly compared to the same period last year and amounted to 26,5%, the net profit margin amounted to 9,5%.

The Company’s total assets as of 31 March 2024 increased and amounted to 151 123,4 mln RUB. The Company’s net assets grew up by 3,9% and amounted to 63 225,3 mln RUB. The net debt3 decreased by 10,6% to 27 927,4 mln RUB (as of 31 December 2023 – 31 252,7 mln RUB).

The Company’s statements for 1Q 2024 can be found at: https://mrsk-1.ru/en/information/statements/rsbu/2024/.