Key
Results in the Reporting Period
RUB
million unless otherwise stated
Indicator
|
2020
|
2019*
|
Change
|
Financial Results
|
|
|
|
Revenue
|
82,646
|
82,371
|
0.3%
|
electricity distribution
|
75,897
|
75,696
|
0.3%
|
grid connection
|
6,340
|
6,242
|
1.6%
|
other
|
408
|
433
|
-5.6%
|
Cost of sales
|
60,379
|
58,279
|
3.6%
|
Gross profit
|
22,266
|
24,092
|
-7.6%
|
Net profit
|
14,147
|
13,568*
|
4.3%
|
EBITDA**
|
32,800
|
30,546
|
7.4%
|
EBITDA margin
|
39.7%
|
37.1%
|
2.6 pp
|
Operating Results
|
Installed capacity, MVA
|
34,642
|
33,381
|
3.7%
|
Connected capacity,*** MW
|
801
|
893
|
-10.3%
|
Net supply, mln kWh
|
29,580
|
30,625
|
-3.4%
|
Lenenergo electricity network losses, mln kWh
|
3,847
|
3,967
|
-3.0%
|
Notes:
* According
to accounting reports subject to retrospective adjustments made to
2019 accounting records due to the entry into legal force of
amendments to Accounting Standards 18/02 Recognizing Payment of
Corporate Tax. Under the accounting reports for 2019, the net profit
was RUB 12,705 million. In line with the requirements of
Accounting Rules 18/02 Recognizing Payment of Corporate Tax, net
profit for 2019 as adjusted by RUB 863 million and totaled RUB
13,568 million. It was an accounting (technical) adjustment,
which does not affect the assessment of the Company’s performance
for 2019.
** EBITDA is net of provisions for impairment of
financial investments.
EBITDA:
Earnings Before Interest, Tax, Depreciation and Amortization, less
Net Provisions for Impairment of Financial Investments.
*** The
connected capacity equals permanent grid connection (net of
generation).
“The
Company’s priority amid the COVID 19 pandemic and the decline in
net supply was to maintain a stable financial position. To address
this challenge, “Rosseti Lenenergo”, PJSC worked consistently
throughout the year to optimize its credit portfolio and improve the
structure of other income and expenses. These efforts have
underpinned our strong financial performance and increased margins
with a low leverage”.
- Aleksey Polinov
Deputy CEO for
Economics and Finances, “Rosseti Lenenergo”, PJSC
Notes
to the Operating Results
The
decrease in net supply for 12M 2020 by 1,045 million kWh or
3.4% year-on-year was caused by a decline in electricity consumption
due to unusually high outside temperatures across the operating
regions of “Rosseti Lenenergo”, PJSC in Q1 2020 and response to
the COVID-19 pandemic undertaken by the federal and regional
authorities in Q2 and Q3 2020.
Losses
for 12M 2020 decreased by 119.8 million kWh or 3.0% year-on-year. The
decrease in electricity losses (in physical terms (kWh) and as
percentage (%)) was driven by the implementation of measures under
the Program for Reducing Electricity Losses in the Grids of
“Rosseti Lenenergo”, PJSC, including measures aimed at
improving the electricity metering system. The amount of losses (in
physical terms in kWh) was also affected by a decrease in electricity
consumption.
Notes
to the Financial Results
In
2020, “Rosseti Lenenergo”, PJSC posted a revenue of RUB 82,646
million, including:
In
2020, electricity distribution revenue totaled RUB 75,897
million, up by RUB 201 million or 0.3%year-on-year due to higher
tariffs.
In
2020, grid connection revenue totaled RUB 6,340 million, up by
RUB 98 million or 1.6% year-on-year. The increase in revenue was
caused by the discharge of grid connection obligations towards
several major customers.
Other
revenue for 2020 was RUB 408 million, down by 5.6% or RUB 24
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 SPb ES JSC, PES
JSC, Kurortenergo JSC, and TsEK JSC.
In
the reporting period, “Rosseti Lenenergo”, PJSC’s cost of
sales totaled RUB 60,379 million, up by RUB 2,100 million or 3.6%
year-on-year, largely as a result of higher payroll costs (an
increase in the headcount) and depreciation of fixed assets
(consolidation of the assets of subsidiaries and affiliates) caused
by the reorganization of the Company.
In
the reporting period, “Rosseti Lenenergo”, PJSC’s net profit
totaled RUB 14,147 million, up by RUB 579 million or 4.3%
year-on-year. The profit growth was primarily driven by the
optimization of the loan portfolio, which allowed reducing the
Company’s interest expenses, as well as strong claim management and
measures taken against illegal consumption.
In
the reporting period, “Rosseti Lenenergo”, PJSC’s EBITDA
totaled RUB 32,800 million, up by RUB 2,254 million or 7.4%
year-on-year.
Principal
Balance Sheet Figures
RUB
million unless otherwise stated
Indicator
|
December
31, 2020
|
2019*
|
Change
|
Assets
|
|
|
|
Non-current
assets
|
243,666
|
211,547
|
15.2%
|
Current
assets
|
11,426
|
15,185
|
-24.8%
|
Total
assets
|
255,092
|
226,732
|
12.5%
|
Net
assets
|
173,005
|
148,326
|
16.6%
|
ROE
|
8.2%
|
9.2%
|
-1.0
p.p.
|
Equity
and Liabilities
|
|
|
|
Equity
and reserves
|
173,005
|
148,326
|
16.6%
|
Non-current
liabilities
|
43,250
|
32,568
|
32.8%
|
Current
liabilities
|
38,837
|
45,838
|
-15.3%
|
Total
liabilities
|
82,087
|
78,406
|
4.7%
|
Net
debt
|
27,270
|
20,924
|
30.3%
|
Net
debt/EBITDA for 4 quarters
|
0.83
|
0.69
|
-
|
* According
to accounting reports subject to retrospective adjustments made to
2019 accounting records due to the entry into legal force of
amendments to Accounting Standards 18/02 Recognizing Payment of
Corporate Tax
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 December 31, 2020, “Rosseti Lenenergo”, PJSC’s assets
totaled RUB 255,092 million, up 12.5% year-on-year. The increase
in assets was mainly due to the implementation of the investment
program by the Company and completion of the reorganization of
“Rosseti Lenenergo”, PJSC through the consolidation of SPb ES
JSC, PES JSC, Kurortenergo JSC, and TsEK JSC.
In
2020, the Company’s net assets grew by RUB 24.679 million or
16.6% year-on-year.
“Rosseti
Lenenergo”, PJSC’s ROE totaled 8.2%. The 1 p.p. decrease
year-on-year was due to the increase in the Company’s equity post
reorganization.
As
at the end of the reporting period, long-term liabilities of
“Rosseti Lenenergo”, PJSC was RUB 43,250 million, up RUB 10,682
million or 32.8% year-on-year, due to an increase in the share of
long-term borrowings in the loan portfolio (as a result of
refinancing short-term loans) and an increase in deferred tax
liabilities.
Short-term
and long-term loans and borrowings of “Rosseti Lenenergo”,
PJSC as at December 31, 2020 totaled RUB 29,047 million (up by RUB
833 million year-on-year). The increase in net debt is mainly due to
an increase in the share of long-term targeted financial investments.
At the end of 2020, the Company’s Net Debt/EBITDA was 0.83.
Investment
RUB
million unless otherwise stated
Indicator
|
2020
|
2019
|
Change
|
Capital
investment, RUB million, net of VAT
|
31,566
|
26,135
|
21%
|
Commissioned
fixed assets, RUB million
|
32,704
|
23,997
|
36%
|
Commissioned
capacity, MVA
|
1,492
|
1,078
|
38%
|
Commissioned
capacity, km
|
2,793
|
2,294
|
22%
|
During
the reporting year, capital investment totaled RUB 31,566
million, up 21% year-on-year. During the reporting year, commissioned
capacity totaled RUB 32,704 million, up 36% year-on-year.
Capital
investment and commissioning of fixed assets in 2020 grew
year-on-year as a result of an increase in commitments under grid
connection agreements signed by “Rosseti Lenenergo”, PJSC.
|