IDGC of Centre has published its consolidated financial statements for 2015 in accordance with IFRS. Consolidated revenues of the Company for the period amounted to 80,8 bln RUB, including from electric energy transmission — 77,7 bln RUB, from grid connection — 1,2 bln RUB and other revenue — 1,9 bln RUB. Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to 15,2 bln RUB. Profit/(loss) for the period rose by 4,2 bln RUB and amounted to 0,9 bln RUB.

Data in billion RUB, unless specified otherwise

In connection with the execution of IDGC of Centre in 2013-2014 of functions of a supplier of last resort and accounting for profit from the electric energy transmission in the profit from the sale of electric energy, the comparison of the proceeds received by the Company for the current and previous year for the electric energy transmission services and for services from the resale of electric energy and power should be carried out under comparable conditions.

Data in billion RUB, unless specified otherwise

Change in consolidated revenues in 2015 is mainly due to exclusion of the revenue from the resale of electric energy and power as a result of the termination of the functions of the supplier of last resort. Additional factors that affected the consolidated revenues were a decrease in revenues for grid connection services because of the implementation of major grid connection contracts in 2014, and an increase in other revenue due to the commencement of the concession agreement with the Administration of the Tambov region in 2015.

Operating costs of the Company for 2015 amounted to 75,2 bln RUB, which is 15,5% less than the same indicator for 2014. The main factors of the decrease in the expenses were the exclusion of the item “Electric energy for resale” (7,5 bln RUB in 2014) and considerable decrease in the item “Loss on impairment of fixed assets” from 9,1 bln RUB in 2014 to 0,7 bln RUB in 2015. The costs also included such items as “Expenses under the concession agreement” and “Provision for impairment of accounts receivable” of 0,9 bln RUB and 1,5 bln RUB, respectively. The provisions were created for impairment of trade receivables from companies with which there is disagreement on electric energy transmission, as well as companies with outstanding debt for resale of electric energy and power for the period of 2013-2014. Following the results of 2015 the depreciation amounted to 7,8 bln RUB, which is 0,8 bln RUB less than the same indicator last year due to the significant impairment of fixed assets in 2014. Other expenses decreased by 23,1% to 2,0 bln RUB.

The Company’s EBITDA in the reporting period increased by 92,4% and amounted to 15,2 bln RUB (7,9 bln RUB in 2014). In 2015 EBITDA margin was 18,8%. Profit/(loss) for the period increased from -3,3 bln RUB in 2014 to 0,9 bln RUB in 2015. The most significant impact on the Company’s financial results was given by the termination of the provision of services for the sale of electric energy in 2014, the increase in interest paid and provisioning for impairment of receivables. At the end of 2015 the significant positive results were achieved thanks to the efficient work with the loan portfolio, the implementation of the Cost Management Program and the management’s efforts to improve the reliability and quality of electricity supply.

As at December 31, 2015 IDGC of Centre’s assets totalled 100,4 bln RUB (as at December 31, 2014 — 93,8 bln RUB). Net debt¹ reached 42,0 bln RUB (as at December 31, 2014 — 36,9 bln RUB). The increase in liabilities was due to the need to finance the investment program and the current business operations.

The Company’s consolidated financial statements can be found at: https://www.mrsk-1.ru/en/information/msfo/2015/