Revenue of PJSC Lenenergo in Q1 2018 increased by 14% Q-o-Q to RUB 19,249 mln. EBITDA for the reporting period amounted to RUB 6,439 mln (+29%). Net profit in Q1 2018 totaled RUB 2,939 mln (+99%). 

In RUB mln, unless otherwise specified

Notes on the calculation of indicators:
EBITDA is reported net of the balance of provision for impairment of debt financial investments. EBITDA = Net profit + Income tax + Depreciation + Interest payable – Balance of provision for impairment of debt financial investments.
The amount of debt on loans and credits is reported including the interest (sum of lines 1410 and 1510 of the balance sheet).
Net debt is calculated as the sum of credits and loans net of cash and short-term financial investments.
ROE is calculated as follows: (Net profit /Equity)*100

Revenue

According to results of Q1 2018, revenue of the Company from the sale of products amounted to RUB 19,249 mln; the growth amounted to RUB 2,375 mln or 14.1% compared to the same period of 2017.

Revenue from electricity transmission services

The increase of revenue from the provision of electricity transmission services for Q1 2018 compared to Q1 2017 is caused by the growth of tariff rates in 2018 and including in the volume of productive electricity supply of consumers on former area of activities of JSC SPb EN.

Revenue from technological connection services

Deviation of revenue from provision of technological connection services for Q1 2018 compared to the same period of 2017 is caused by the fact that in Q1 2017 the works were completed, and the certificates of technological connection were issued upon readiness of power receivers of the applicants under obligations fulfilled on the part of PJSC Lenenergo in 4Q 2016, within the program of fulfillment of accrued obligations. At the same time, in Q1 2018 the obligations under current contracts were fulfilled in accordance with scheduled dates of their fulfilment.

Revenue from other activities

The decrease of revenue from other activities for Q1 2018 compared to Q1 2017 is caused by the fact that from 01.04.2017 the changes were made in the list of facilities serviced under contracts for operational maintenance of electric grid property entered into with JSC SPb EN and JSC PPG due to coming into lease contracts.

Cost

According to results of Q1 2018, cost of provided services increased compared to the same period of 2017 by RUB 1,851 mln or 13.8 %.

In RUB mln, unless otherwise specified 

Performance in Q1 2018 was affected by the implementation of the stage of consolidation of electricity grid assets of SPb EN and JSC PPG by entering into lease contracts from 01.04.2017. The increase of cost in Q1 2018 compared to Q1 2017 was materially affected by the growth of uncontrolled expenses of the Company – expenditures for loss compensation and services of PJSC FGC of UES, an increase of depreciation value and income tax upon completion of the investment program in 2017.

Financial results

Gross profit of PJSC Lenenergo for Q1 2018 amounted to RUB 4,030 mln what is higher by 14.9% than this indicator for the same period of the last year – due to the growth of revenue to a greater extent than the growth of the cost of services.

According to results of Q1 2018, net profit of the Company amounted to RUB 2,939 mln. The financial result increased twice compared to the same period of 2017. Improvement of the financial result is caused by the growth of gross profit and improvement of balance on other income and expenses.

EBITDA

EBITDA for Q1 2018 amounted to RUB 6,439 mln and increased by 28.9% compared to the same period of 2017.

Note:

EBITDA is reported net of the balance of provision for impairment of debt financial investments. EBITDA = Net profit + Income tax + Depreciation + Interest payable – Balance of provision for impairment of debt financial investments.

Credit portfolio and debt position 

Credits and loans

The Company’s debt (including interest debt) as at 31.03.2018 amounted to RUB 30,882 mln what is lower by 16.4% than this indicator as at the beginning of the year, including on principal debt – by 16.3%, on interest debt – by 30.5%.

Reduction of principal debt compared to the beginning of the year is caused by the formation of positive net cash flow on operating activities.

Interest debt reduced due to reduction of debt on exchange-traded bonds series BO-05 due to payment of accumulated coupon yield for the 5^th coupon period and reduction of the interest rate from 8.75% to 7.85% per annum according to results of completion of offer on 22.01.2018 as well as due to work for optimization of credit portfolio in the period January-March 2018.

Net debt

Reduction of net debt of PJSC Lenenergo compared to the level of 2017 amounted to RUB 7,525 mln, together with a decrease of the Company’s debt by RUB 6,043 mln – due to positive net cash flow and growth of cash balance as at 31.03.2018 compared to 31.12.2017.

As at 31.03.2018, ratio Net debt/EBITDA amounted to 0.9ő.

Investments

The volume of capital investments for three months 2018 amounted to RUB 1,240.72 mln what is lower by 40% than this indicator for the same period of 2017 (RUB 2,079 mln). The volume of commissioning for three months 2108 amounted to RUB 894.55 mln, what is lower by 38% than this indicator for the same period of 2017 (RUB 1,443 mln).

The decrease of indicators of disbursement and commissioning of fixed assets is caused by completion in 2017 of works within the program of the fulfilment of accrued obligations under contracts for technological connection of consumers, commenced in 2016.

The increase of commissioning in physical indicators in Q1 2018 is caused by performance of works on 0.4-10 kV distribution network for transformer station using own resources.

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