According to the prepared in accordance with the Russian Accounting Standards statements for 1H 2020, Rosseti Centre’s revenue (the public name IDGC of Centre, PJSC, the ticker - MRKC) was 45,7 bln RUB, including from electric energy transmission – 44,3 bln RUB, from grid connections – 0,4 bln RUB, from resale of electric energy and power – 0,3 bln RUB and other revenue – 0,8 bln RUB. Sales profit was 2,7 bln RUB. Earnings before interest, taxes, depreciation and amortization (EBITDA²) reached 8,5 bln RUB. Net profit increased by 12,5% and amounted to 0,9 bln 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 for 1H 2020 decreased by 1,8%, which is largely due to a decrease in productive supply. A positive factor for the changes of revenue from electricity transmission is the change in tariff rates for electricity transmission from 01.07.2019 with keeping their sizes in 1H 2020.

The revenue from grid connection services for 1H 2020 was 0,4 bln RUB. The decrease by 20,0% compared to the same period of 2019 is associated with the execution in 1H 2019 of major grid connection agreements.

The other revenue for 1H 2020 compared to the same period of 2019 increased by 14,3% and amounted to 0,8 bln RUB. The main reason for the growth of the other revenue is an increase in the volume of value-added services, which corresponds to the main strategic objectives of the Company to increase the volume of non-tariff income.

The cost of sales decreased by 0,7% at the end of 1H 2020, which was a consequence of both a decrease in electricity transmission volumes and management efforts to reduce controllable costs. Restrictive measures due to the unfavourable epidemiological situation, as well as additional costs for a set of measures for additional protection of personnel and production facilities, had a negative impact on the Company’s financial results in 1H 2020. The EBITDA remained at the level of the previous year, slightly decreasing by 0,2 bln RUB. Despite force majeure circumstances that arose in 2Q 2020, the Company’s net profit for 1H 2020 exceeded the same indicator of the previous year by 0,1 bln RUB and reached 0,9 bln RUB.

The volume of services for the transmission of electricity amounted to 22,6 billion kWh, compared with the same period last year, there was a decrease in the volume by 3,0%. 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 changed by (-0,17) p.p. and amounted to 10,37%. 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 June 2020 increased and amounted to 123,6 bln RUB. The Company’s net assets increased by 1,6% and amounted to 56,6 bln RUB. The net debt³ decreased to 41,7 bln RUB (as at 31 December 2019 – 42,2 bln RUB).

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