March
14, 2014 in person and in absentia a meeting of the Board of
Directors IDGC of Centre was held. The meeting approved the adjusted
Business plan of the Company for 2014 and approved a draft of the
adjusted Investment program of the Company for 2014-2019. According
to the results of the meeting of the Board of Directors General
Director of IDGC of Centre was instructed to ensure approval of the
adjusted Investment program of the Company for 2014-2019 by regional
authorized bodies of executive power in accordance with Resolution of
the Government of the Russian Federation dated 01.12.2009 ¹ 977 "On
investment programs of electric power industry subjects".
The adjusted Business plan of IDGC of Centre was formed with
taking into account the following: outcome of the tariff campaign in
2014, termination to perform the functions of a supplier of last
resort by the branches: "Orelenergo" - from 01.02.2014,
"Kurskenergo" and "Tverenergo" - from 01.04.2014;
decrease in operating expenses in 2014 within the framework of the
Cost Management Program.
Indicators of the adjusted Business plan of the Company for 2014
are as follows:
Data in billion RUB, unless specified otherwise
Indicators
|
Actual for 2013
|
Adjusted plan for 2014
|
Change, %
|
Revenue (total), including:
|
92,9
|
92,6
|
-0,3%
|
Revenue from electricity transmission1
|
75,2
|
76,4
|
1,6%
|
Revenue from grid connection
|
0,9
|
1,2
|
33,3%
|
Revenue from resale of electric energy and power1
|
16,0
|
14,1
|
-11,9%
|
Other revenue
|
0,9
|
0,9
|
0,0%
|
Cost of sales1
|
78,5
|
81,5
|
3,8%
|
EBITDA2
|
11,5
|
15,0
|
30,4%
|
Net profit
|
0,3
|
2,7
|
800,0%
|
Amount of electric energy transmitted3, billion kWh
|
55,2
|
54,7
|
-0,9%
|
Electric energy losses, %
|
9,16%
|
9,48%
|
0,32 p.p.
|
Net debt4
|
32,0
|
34,9
|
9,1%
|
[1] According to the management accounting (revenues less
internal business volume)
[2] EBITDA is calculated as follows:
net profit + profit tax and other similar mandatory payments +
interest payable - interest receivable + depreciation charges
[3]
Joint operation productive supply without taking into account losses
of TGCs
[4] Net debt is calculated as follows: long-term debt +
short-term debt - cash and cash equivalents - short-term financial
investments
Planned revenue from electric energy transmission within the
adjusted Business plan for 2014 is by 1.6% higher than actual in
2013, due to the increase in the average tariff for the transmission
of electric energy, based on resolutions approved by regional energy
commissions. As part of the adoption and execution by IDGC of
Centre’s branches of the functions of a supplier of last resort the
adjusted Business plan for 2014 provides for revenue from the resale
of electric energy and power in the amount of 14.1 bln RUB, which is
by 11.9% less than the fact of 2013. The main cause of the indicator
decline is the "transfer" of the functions of a supplier of
last resort from the branches of the Company to winners of tenders
held by the Ministry of Energy of Russia.
Cost of sales for 2014 is planned at 3.8% higher than in 2013, but
below the level of inflation, which, according to the Forecast of
socio-economic development of the Russian Federation, this year will
be 5.6%. The main factors positively affecting the forecast of costs
of the company are: lower operating costs per unit of production
assets by 5% to the base in 2012; reducing costs for the purchase of
goods (works, services) per unit of production by 10% to the base of
2010; decreasing investment costs by 10% against the level of 2012.
Earnings Before Interest, Taxes, Depreciation, and Amortization
are projected at 30% higher than the actual values in 2013. Net
income of the company according to the Business plan will reach 2.7
bln RUB, and the profit from electricity transmission services is
expected to reach 1.6 bln RUB.
Predicted value of joint operation productive supply according to
the adjusted Business plan for 2014 is 54.7 billion kWh, which is
0.9% lower than the fact for 2013. The main reason for the productive
supply decline against the fact for 2013 is a reduction in
consumption due to the termination of "last mile"
contracts. In 2014 IDGC of Centre planned increase in losses
regarding the fact in 2013 by 0.32%. The increase in the relative
amount of losses is associated with decreased supply to the grid in
2014.
The key factors taken into account in the adjustment of the
Investment Program are: limiting the growth of rates starting from
2014; revision of the value of investment projects based on targets
for reduction of specific investment costs by 30% against the level
of 2012 by 2017 (in rubles per physical unit (km, MVA); the fact of
the Investment program implementation by the end of 2013.
Key indicators of the adjusted Investment program for 2014-2019
are as follows:
Indicator
|
UOM
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
Capex, net of VAT
|
bln RUB
|
11,9
|
11,9
|
12,8
|
12,7
|
13,0
|
13,4
|
Commissioned capacity
|
MVA
|
920
|
1 008
|
1 384
|
1 302
|
1 011
|
781
|
km
|
4 179
|
3 540
|
3 934
|
4 491
|
4 627
|
5 509
|
The adjusted Business plan of the Company, including the
Investment program, for 2014 ensures implementation of the Electric
Grid Development Strategy of Russia, aimed at improving the
reliability, quality and availability of power supply to customers
and meeting the interests of shareholders, keeping the breakeven
activity in conditions of tariff rates "freezing".
«Other IR news of the Company can be found at:
https://www.mrsk-1.com/en/investors/presentations/ir_news/»
|
