According to the prepared in accordance with the Russian Accounting Standards statements for 1Q 2023, revenue of Rosseti Centre, PJSC (the ticker - MRKC) was 32 384,7 mln RUB, including from electric energy transmission – 30 575,9 mln RUB, from grid connections – 831,9 mln RUB, from sale of electric energy and power – 193,5 mln RUB and other revenue – 783,4 mln RUB. Sales profit1 was 5 628,4 mln RUB. Earnings before interest, taxes, depreciation and amortization (EBITDA²) reached 8 468,3 mln RUB, EBITDA margin remained at the same level as compared to the same period last year and amounted to 26,1%. Net profit increased by 51,6% up to 3 668,7 mln RUB.

Data in million RUB, unless specified otherwise

^[1] Revenue net of cost of sales, selling and administrative expenses

^[2] EBITDA is calculated as follows: Profit before tax + Interest payable + Depreciation

^[3] Net debt is calculated as follows: long-term borrowed funds + short-term borrowed funds – 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 Tver region in the service area of JSC Transservisenergo

The volume of services for the transmission of electricity was 12 816,9 million kWh. Compared to the same period last year, there was a slight decrease in the volume of services by 0,7%, which is mainly due to the climatic factor because of fluctuations in ambient temperature compared to the same period last year. The result of the implementation of a set of organizational and technical measures was the reduction in the level of electricity losses to 11,82% (by 0,17 p.p.).

The revenue for electricity transmission services according to the results of the 1st quarter of 2023 increased by 13,4% compared to 2022 because of the indexation in tariff rates for electricity transmission services from 1 July and 1 December 2022. According to the results of 3 months of 2023, the revenue from grid connection services increased by 70,3% against the same period in 2022 due to execution of a major grid connection agreement in the Lipetsk region and as a result of changes in rates for preferential groups of applicants. The other revenue increased by 47,0% and amounted to 783,4 mln RUB, which is due to the measures taken by the company aimed at expanding the volume and range of non-regulated services provided.

Expenses attributable to cost of sales increased by 12,0% compared to the 1st quarter of 2022. The main growth was due to an increase in non-controllable costs and indexation of employees’ salaries. Despite the high growth rate of consumer and industrial inflation, the Company makes every effort to maintain production efficiency and financial stability, which made it possible to ensure a positive trend in the financial result in the reporting period.

The Company’s total assets as of 31 March 2023 were 141 838,5 mln RUB (as of 31 December 2022 – 140 848,0 mln RUB). The Company’s net assets grew up by 6,6% and amounted to 58 917,8 mln RUB. The net debt³ remained at the level of the end of 2022 and amounted to 32 530,4 mln RUB.

The Company’s statements for 1Q 2023 can be found at: https://www.mrsk-1.ru/en/information/statements/rsbu/2023/.