Federal Grid Company Announces Q1 2015 RAS Financial Results

The Company’s RAS statements do not consolidate the results of Federal Grid Company’s subsidiaries or affiliated companies that operate as independent legal entities.

Key financial highlights

    Revenue – RUB 39,868 mln.
    Cost of sales and management expenses – RUB 33,862 mln.
    Sales profit – RUB 6,006 mln.
    Net profit – RUB 862 mln.
    Adjusted EBITDA –  RUB 27,606 mln.


Federal Grid Company’s performance indicators for Q1 2015 show the fact that the work is underway to enhance the Company’s efficiency in the conditions of tariff growth restriction and upon the slowdown in economic activity.

Federal Grid Company’s revenue for 1Q 2015 decreased slightly year-on-year by 4% and amounted to RUB 39,868 mln. which is explained by the decrease in revenue from the connection services to the UNEG characterized by non-scheduled frequency and regulated by the timeline for delivery of services under the contracts.

For 1Q 2015 Federal Grid Company continued to implement the cost cutting program undertaken in 2014. As a result the quarterly cost of sales and management expenses were reduced by 2.8 % against for 1Q 2014. The decrease, gained despite the growth of the operated assets due to implementation of the Company’s investment program, compensated  the indicated revenue decrease.   

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased by RUB 84 mln (+0.3%) year-on-year and amounted to RUB 27,606 mln.

In its RAS financial statements for Q1 2015, Federal Grid Company reported the profit in the amount of RUB 862 mln. Adjusted net profit of Federal Grid generated by cash flows (with adjustment for provision charges/recovery of provisions for doubtful debts) reached RUB 1,715 mln for 1Q 2015.

Balance Sheet as of March 31, 2015

Federal Grid Company’s total assets for the 1st quarter of 2015 preserved almost the same level as at the beginning of 2015 and showed  the insignificant decrease amounted only to RUB 8,880 mln (0.72%) and totalled RUB 1,222,337 mln at the end of the reporting period. Non-current assets amounted to RUB 1,106,330 mln, and current assets amounted to RUB 116,007 mln.

Federal Grid Company’s equity increased by RUB 862 mln (0.1 %) in the period under review, which is attributable to the recognition of generated profits.

The amount of Federal Grid Company’s credits and loans (excluding the interest accrued) for 1Q 2015 remained the same and totalled RUB 257,771 mln.