According to the prepared in accordance with the Russian Accounting Standards statements for 9 months of 2020, Rosseti Centre’s revenue (the public name IDGC of Centre, PJSC, the ticker - MRKC) was 68 250,1 mln RUB, including from electric energy transmission – 65 486,5 mln RUB, from grid connections – 696,8 mln RUB, from resale of electric energy and power – 377,8 mln RUB and other revenue – 1 689,0 mln RUB. Sales profit was 4 188,0 mln RUB. Earnings before interest, taxes, depreciation and amortization (EBITDA²) reached 12 984,2 mln RUB, EBITDA margin increased relative to the same period of last year and was 19,0%. Net profit reached the level of 1 600,8 mln RUB.

Data in billion RUB, unless specified otherwise

^[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] Net debt is calculated as follows: long-term debt + short-term debt – 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 service area of JSC “Transservicenergo” in the Tver region

The revenue from electricity transmission services following the results of 9 months of 2020 decreased by 1,3% compared to the same period in 2019, which was a consequence of a reduction in electricity consumption, which was caused both by the climatic factor in the first quarter and by a decrease in business activity in the second and third quarters due to restrictive measures, as well as due to the partial transfer of consumer load in 2019 to the FGC UES and their own generation.

The revenue from grid connection services following the results of 9 months of 2020 decreased by 25,0% compared to the same period in 2019, which is due to the high base of the 1st half of 2019, when large grid connection contracts were executed.

The other revenue for 9 months of 2020 compared to the same period of 2019 increased by 70,7% and amounted to 1 688,9 mln RUB. The growth in other revenues was due to the execution of a number of large agreements on value-added services.

Artem Aleshin, Deputy General Director for Economy and Finance, commented on the results of the Company: “The cost of sales remained practically unchanged for 9 months of 2020, which is the result of targeted actions of the management to improve the efficiency of operating costs and rational use of available resources. Despite the difficult macroeconomic situation provoked by the COVID-19 pandemic, the EBITDA grew by 2.6% in the reporting period, while the Company’s net profit for 9 months of 2020 increased by a significant amount of 81.3%.”

The volume of services for the transmission of electricity amounted to 33 194,0 million kWh, compared with the same period last year, there was a decrease in the volume by 2,6%. This decrease was due to the climatic factor because of abnormally warm temperatures in winter, the epidemiological situation in the country (the introduction of a self-restraint regime, a mode for reducing production of all industries), as well as in connection with a partial transfer of consumer load to grids of FGC UES and their own generation. Electricity losses decreased by (-0,36) p.p. and amounted to 9,53%. The main reason for the change in the level of losses is the purposeful implementation of program activities.

The Company’s total assets as at 30 September 2020 increased and amounted to 127 497,0 mln RUB. The Company’s net assets increased by 2,9% and amounted to 57 342,2 mln RUB. The net debt³ grew up to 42 769,7 mln RUB (as at 31 December 2019 – 42 159,5 mln RUB).

The Company’s statements for 9 months of 2020 can be found at: https://www.mrsk-1.ru/en/information/statements/rsbu/2020/.