28 March 2016, Ufa. Bashkir Power Grid Company (BPGC), a subsidiary of Sistema JSFC, the largest public diversified holding company in Russia and the CIS, is announcing its consolidated financial results prepared in accordance with International Financial Reporting Standards (IFRS) for the full year 2015 and for the fourth quarter ended on 31 December 2015.
KEY FINANCIAL RESULTS FOR Q4 AND FULL YEAR 2015:
- Revenue in 2015 went up by 5% YoY, totalling RUB 14,816m. In Q4 2015, revenue rose by 6% YoY, up to RUB 4,206m. The main drivers of revenue growth were a rise in power output and consumption as well as expansion of the scope of other services, including increased connections of new consumers.
- In 2015, OIBDA dropped by 15% YoY, down to RUB 4,325m. In Q4 OIBDA totalled RUB 630m, a 44% decline from Q4 2014.
- OIBDA margin was 29% for the full year 2015 and 15% for Q4 2015.
- Net income for the full year 2015 amounted to RUB 2,226m, falling by 25% YoY. In Q4 2015, net income totalled RUB 130m, down by RUB 470m YoY.
- OIBDA and net income declined in 2015 as a result of a drop in one-off profits from the sale of non-core assets and additional provisions made for potential disputes with contractors for power transmission and sales in 2014-2015. Net of these one-off factors BPGC's adjusted net income rose by 1.5% in 2015.
KEY OPERATING RESULTS:
- Electric power consumption in 2015 increased by 1.68% YoY as a result of a rise in the number of new consumers and growth of Bashkortostan's gross regional product.
- In 2015, as a result of successful implementation of an investment programme and acceleration in power connections, Bashkirenergo obtained 21,765 new consumers, 9.9% more than in 2014.
- In 2015, power losses in distribution grids decreased from 8.46% to 8.22% year-on-year on the back of a new technological policy providing for a wide range of activities aimed at reducing commercial losses in Bashkirenergo's grids.
Commenting on the company's results for the full year 2015, BPGC's CEO Dmitry Sharovatov said:
"Bashkir Power Grid Company made good progress in 2015, having remained a leader in Russia's power grid sector in terms of a number of indicators. The company's revenue increased while OIBDA margin reached 29%. Despite the unfavourable macroeconomic conditions BPGC generated RUB 2, 226m in net income. The number of new customers keeps growing on the back of successful implementation of an investment programme and acceleration of connections of new consumers. Due to the introduction of an efficient technological policy BPGC achieved a reduction in losses in distribution grids.
The company's achievements became possible due to innovative development of its production facilities and business processes. The company is pursuing a consistent policy aimed at upgrading its power grids and implementing an ERP system. In 2015, BPGC was the first company in Russia to migrate to a 10-year cycle of RAB regulation of tariffs. In 2015, the company completed the modernisation of a power grid complex in a pilot district of Ufa, the capital of Bashkortostan, and started rolling out the Smart Grid project across the entire city of Ufa. In June BPGC launched its Grid Management Centre, one of Russia's best power grid facilities, according to experts. Sincethe autumn of 2015, as part of the power grid modernisation project in Ufa based on the application of Smart Grid elements, BPGC's subsidiary BPGC Engineering in cooperation with Siemens started to assemble state-of-the-art power grid equipment to be used in smart grids. The company's experience in managing the optimisation of business processes was recognised on a national scale when BPGC won the Project of the Year contest organised by Global CIO, Russia's largest community of IT Directors. Bashkir Power Grid Company received an award for offering the best solution in ERP category."
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For more information please contact:
Head of Public Relations
Bashkir Power Grid Company
Tel.: (347) 279-73-80