At a
meeting of the Board of Directors March 31, 2015 the adjusted
Business Plan of the Company, including the Investment Program, for
2015 was approved. Adjustment of the Business Plan of the Company is
related to the need to take into account several important factors
such as: approval of tariffs for electricity transmission services by
executive authorities of subjects of the Russian Federation, increase
in the cost of servicing debt and change in socio-economic
development of the Russian Federation.
Indicators of the adjusted Business Plan of the Company for 2015:
Data in billion RUB, unless specified otherwise
Indicators
|
Actual for 2014
|
Adjusted plan for 2015
|
Change, %
|
Revenue (total), including:
|
86,7
|
78,7
|
-9,2%
|
Revenue from electricity transmission*
|
75,9
|
76,5
|
0,8%
|
Revenue from grid connection
|
1,5
|
1,4
|
-6,7%
|
Revenue from resale of electric energy and power*
|
8,3
|
0,0
|
-
|
Other revenue
|
1,0
|
0,8
|
-20,0%
|
Cost of sales*
|
74,3
|
70,1
|
-5,7%
|
EBITDA1
|
15,6
|
13,9
|
-10,9%
|
EBITDA margin, %
|
18,0%
|
17,7%
|
0,3 p.p.
|
Net profit
|
3,3
|
-0,5
|
-115,2%
|
Net profit margin, %
|
3,8%
|
-
|
-
|
Amount of electric energy transmitted2, billion kWh
|
54,4
|
54,4
|
0,0%
|
Electric energy losses, %
|
9,17%
|
9,44%
|
0,27 p.p.
|
Electric energy losses, % (under comparable conditions)
|
9,17%
|
9,10%
|
-0,07 p.p.
|
Indicators
|
As at 31.12.2014
|
As at 31.12.2015
|
Change, %
|
Loans and credits
|
37,2
|
42,7
|
14,8%
|
Net debt3
|
36,8
|
42,4
|
15,2%
|
[*]According to management accounting
|
[1] EBITDA is calculated as follows: net profit +
profit tax and other similar mandatory payments + interest payable
- interest receivable + depreciation charges
|
[2] Joint operation productive supply without taking
into account losses of TGCs
[3] Net debt is calculated as follows: long-term
debt + short-term debt – cash and cash equivalents – financial
investments
|
Planned revenue for electric energy transmission services
according to the adjusted Business Plan for 2015 is 0.8% higher than
the fact in 2014 due to increase in the average tariff for electric
energy transmission. A negative factor in the revision of the planned
value of revenues for the electric energy transmission was removal
from the forecast of the growth in the flat-rate tariff for other
consumers in two of the four regions where the "last mile"
was kept and decrease in the Required Gross Revenue in terms of
non-controllable costs. Revenue growth from grid connection relative
to the previously approved forecast is associated with the inclusion
of a number of major contracts in the adjusted Business Plan for
2015, as well as increase in the number of scheduled connections of
applicants in relation with the increase in funding for grid
connection as provided for in the approved Investment Program.
Change in cost of sales relative to the previously approved plan
for 2015 is explained with allocation from the cost of sales of
services provided by the Company of commercial and administrative
expenses of 2.1 bln RUB, according to para. 4.3.12. of the Management
and Governance Letter to IDGC of Centre on the results of the interim
audit of accounting (financial) statements, prepared in accordance
with the Russian Accounting Standards, for the nine months ended
September 30, 2014.
Earnings before interest, taxes, depreciation and amortization
(EBITDA) is expected to be at the level of the previously approved
Business Plan and will be 13.9 bln RUB. As a result of increasing the
key rate of the Central Bank of the Russian Federation it is expected
to increase the average rate of borrowing up to 13.21%, which will
increase the cost of servicing loans. Also, as a result of growth in
total revenue significantly below the inflation rate and the growth
of spending, the company’s financial results according to the
adjusted Business Plan is projected at (-0.5) bln RUB.
The projected productive joint operation supply to consumers
according to the adjusted Business Plan for 2015 is unchanged at 54.4
billion kWh. In 2015 IDGC of Centre has planned slight increase in
losses compared with the fact in 2014 at 0.27%. The growth of the
relative size of the losses is associated with a decrease in supply
to the grid in 2015 as a result of removal of the transmission volume
for "last mile" facilities and integration of networks of
OJSC "Yargorelectroset". Electricity losses in the
calculation under comparable conditions are projected at 9.10%, which
is 0.07 p.p. lower than the fact in 2014.
The key factors taken into account while adjusting the Investment
Program for 2015 were the implementation results of the Investment
Program in 2014 and approval of the adjusted Investment Program for
2015 and for the period of 2016-2020 by the Board of Directors.
Indicators of the adjusted Investment Program of the Company for
2015:
Data in billion RUB, unless specified otherwise
Indicators
|
Actual in 2014
|
Plan for 2015
|
Change, %
|
Approvedplan
|
Adjusted plan
|
Capital investment, VAT exclusive
|
12,2
|
11,9
|
11,5
|
-3,0%
|
Financing, VAT inclusive
|
14,2
|
14,0
|
13,4
|
-4,5%
|
Commissioning of Fixed Assets, VAT exclusive
|
12,9
|
12,4
|
11,9
|
-3,7%
|
Commissioning of capacity:
|
|
|
|
|
MVA
|
1 107
|
1 030
|
909
|
-11,8%
|
km
|
5 110
|
3 517
|
3 506
|
-0,3%
|
The adjusted Business Plan of the Company, including the
Investment Program, for 2015 reflects the forecast of IDGC of
Centre’s activity at the current economic situation. The Company
will make every effort to achieve break-even operations. As part of
measures to improve the financial condition the Company has prepared
proposals for changes in laws and regulations, including those
relating to reduction of shortfall in income from preferential grid
connection, increasing the payment discipline and optimizing the cost
of servicing the loan portfolio.
|
