According to the prepared in accordance with the Russian Accounting Standards statements for 1Q 2020, Rosseti Centre’s revenue was 24,9 bln RUB, including from electric energy transmission – 24,1 bln RUB, from grid connections – 0,1 bln RUB, from resale of electric energy and power – 0,2 bln RUB and other revenue – 0,5 bln RUB. Sales profit was 2,6 bln RUB, Earnings before interest, taxes, depreciation and amortization (EBITDA²) were 5,7 bln RUB. The EBITDA margin increased relative to the same period last year and was 22,9%. Following the results of 1Q 2020, the net profit in the amount of 1,6 bln RUB was received.

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 - interest receivable + 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

Following the results of 1Q 2020, revenue for electricity transmission services decreased relative to the same period in 2019 as a result of a reduction in electricity consumption, including under the influence of abnormally warm weather conditions in 1Q 2020. The change in the volume of revenue from grid connections relative to the same period in 2019 is due to the execution of large grid connection agreements in 1Q 2019. The growth in other revenue was due to an increase in the volume of value-added services rendered.

Following the results of 1Q 2020, the prime cost decreased by 1,8% and amounted to 21,7 bln RUB. The reduction in expenses is due to lower variable costs as a result of reduced services. Due to the outstripping rate of the cost reduction over the rate of the revenue decline, the EBITDA value increased by 7,5%. Following the results of 1Q 2020, the net profit increased by 45,5% compared to the same period last year.

Following the results of 1Q 2020, the volume of electricity transmission services amounted to 12,1 billion kWh, which is 3,2% lower than the same period last year. This is mainly due to the climatic factor because of abnormally warm temperatures that are not typical for the specified period, and a partial transfer of consumers’ load to grids of FGC UES and own generation, as well as the announcement of non-working days in March 2020 due to the unfavourable epidemiological situation in the country. The level of electricity losses decreased by 0,85 percentage points and amounted to 11,73%. This result allowed the Company to save 330 mln RUB.

The Company’s total assets as at 31 March 2020 increased by 1,5% and amounted to 124,2 bln RUB, which is associated primarily with an increase in retained earnings for the reporting period. The Company’s net assets increased and reached 57,3 bln RUB. The net debt³ was 40,3 bln RUB (as at 31 December 2019 – 42,2 bln RUB).

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