Rosseti Lenenergo, PJSC (part of Rosseti Group), MOEX ticker: LSNG and LSNGP, publishes its RAS Financial Statements for 6 months 2021

Key Results in the Reporting Period

RUB million unless otherwise stated

Operational Results

Notes:

* EBITDA is shown net of provisions for impairment of debt-based financial investments.

EBITDA = Earnings Before Interest, Tax, Depreciation and Amortization less Net Provision for Impairment of Debt-based Financial Investments.

** The connected capacity figure is for permanent grid connections only (that do not include power generation facilities connection).

Over 6M 2021, Rosseti Lenenergo, PJSC achieved strong financial and economic growth through an increase in net supply and delivery on its grid connection obligations toward large consumers. Our strong free liquidity allowed for a temporary deleveraging, with the Net Debt/EBITDA down to 0.35.
Aleksey Polinov
Deputy CEO, Economics and Finance
Rosseti Lenenergo 

Notes to the Operating Results

Stronger net supply for 6M 2021 by 1,241 million kWh or 8.3% year-on-year was caused by an increase in electricity consumption due to much lower outside temperatures in Q1 2021 unusual for the region’s winter months and a partial recovery in electricity consumption after the restrictions imposed in March 2020 to curb the spread of the coronavirus.

Losses for 6M 2021 increased by 166 million kWh or 8.9% year-on-year. The increase in electricity losses (in physical terms (kWh) and as percentage (%)) was driven by the consolidation of grids of Rosseti Lenenergo, PJSC with Tsarskoye Selo Energy Company, JSC and Kurortenergo, JSC from May 14, 2020 as well as by much colder weather
in Q1 2021 as compared to 2020.

Notes to the Financial Results

For 6M 2021, Rosseti Lenenergo, PJSC posted a revenue of RUB 46,505 million, including:

For 6M 2021, electricity distribution revenue totaled RUB 42,597 million,
up by RUB 5,156 million or 13.8%year-on-year driven by a considerable increase
in electricity distribution due to unusual outside temperatures in Q1 and Q2 2021.

Grid connection revenue for 6M 2021 totaled RUB 3,747 million, up by RUB 1,901 million or 103.0% year-on-year, as an LSR Group’s major asset was connected to a Rosseti Lenenergo grid.

Other revenue for 6M 2021 was RUB 161 million, down by 3.7% or RUB 6 million year-on-year, due to the termination of electric grid lease agreements on completion of the reorganization of Rosseti Lenenergo, PJSC, through the consolidation of Saint Petersburg Power Grid, JSC, Petrodvorets Electric Company, JSC, Kurortenergo JSC, and Tsarskoye Selo Energy Company JSC.

In the period covered, Rosseti Lenenergo’s cost of sales totaled RUB 31,402 million, up by RUB 2,729 million or 9.5% year-on-year, largely as a result of higher amortization costs upon the completion of the capex program and costs for compensation of losses due to the increase in sales markups by guaranteeing suppliers approved by regulators as part of the price for the acquisition of losses.

In the same reporting period, Rosseti Lenenergo net profit totaled RUB 11,269 million, up by RUB 3,658 million or 48.1% year-on-year, which was primarily driven by a considerable increase in grid connection revenue and electricity distribution revenue due to stronger electricity consumption.

For the past 6 months, Rosseti Lenenergo EBITDA totaled RUB 22,814 million, up by RUB 6,350 million or 38.6% year-on-year.

Main Balance Sheet Figures

RUB million unless otherwise stated

Notes:

Net debt is calculated as long-term and short-term loans and borrowings (including outstanding interest), less cash and cash equivalents and short-term financial investments. ROE is calculated as (Net Profit (for 4 quarters) / Equity) * 100

As at June 30, 2021, Rosseti Lenenergo assets totaled RUB 262,599 million, up 2.9% year-on-year. The growth in assets was primarily driven by a temporary increase in cash balances.

Over 6M 2021, the Company’s net assets grew to RUB 180,989 million by RUB 7,984 million or 4.6% year-on-year.

The Company’s ROE was 9.8%, with the 1.6 percentage points year-on-year increase due to the year-on-year growth in the Company’s net profit for 6M 2021.

As at the end of the reporting period, non-current liabilities of Rosseti Lenenergo, PJSC was RUB 36,060 million, down RUB 7,190 million or 16.6% year-on-year due to the repayment of long-term borrowings and an increase in deferred tax and other liabilities.

Short-term and long-term loans and borrowings of Rosseti Lenenergo, PJSC (including outstanding interest) as at June 30, 2021 totaled RUB 20,226 million (down by RUB 8,821 million for said six months).

The Company’s net debt decreased to RUB 13,599 million, as the current liquidity and debt portfolio were optimized by repaying longs with higher interest rates using temporarily available cash.

As a result, as of the end of 1H 2021, the Company’s Net Debt/EBITDA was down to 0.35.

Investment

RUB million unless otherwise stated

Notes:

The 1H 2021 actual figures are based on available information.

Capital investment totaled RUB 11,501 million in the reporting period, down 3% year-on-year. The value of commissioned fixed assets reached RUB 9,280 million, up 17% year-on-year.