Enel Russia posted a net loss of 49,660 million RUB for the first nine months of 2015

Carlo Palasciano, General Director of Enel Russia said: “Better availability of our generating fleet and efforts to contain fixed costs were overshadowed by a challenging market context characterised by unfavourable price dynamics and the weakness of the ruble, which ultimately resulted in an operative loss, further accentuated by our asset impairment triggered by the new regulatory scenario.”

Operating results

Net power output in the first nine months of 2015 stood at 31,132 GWh, in line with the 31,171 GWh posted in the same period of the previous year. Output volumes in different technologies were affected by a variety of factors. Output from CCGT units increased compared to the corresponding period of 2014 because maintenance works were carried out at Sredneuralskaya CCGT during the first quarter of 2014. In conventional thermal generation, Nevinnomysskaya’s output grew due to increased consumption in southern Russia, while Reftinskaya’s output rose slightly on the previous year thanks mainly to increased production from Units 5 and 7, which were back in operation in the first half of 2015 following maintenance and works to improve their environmental impact. This output growth almost totally offset the lower production from Konakovskaya GRES that was due to the plant being utilised less by the System Operator.

Power sales in the reporting period stood at 35,909 GWh, 0.7% or 260 GWh higher than the figure posted in the corresponding period of 2014.

Heat sales stood at 3.674 million Gcal, a drop of 10.9% year-on-year that was mainly due to warmer than usual average temperatures at the beginning of 2015 and reduced heat supply by Sredneuralskaya GRES, which was due to modernisation works at the district heating system.

Financial Results

Operating revenues totalled 51,534 million RUB, down 5.8% or 3,151 million RUB compared to the first nine months of 2014. This was mainly attributable to lower free power prices (DAM) and free capacity prices (KOM).

EBITDA in the nine months of 2015 stood at 7,551 million RUB, 5,899 million RUB or 43.9% lower than the figure posted in the same period of last year. This drop mainly resulted from higher coal prices, which were caused by the unfavourable exchange rate for the Russian ruble against the Kazakh tenge, as well as the lower DAM and KOM prices mentioned above.

PJSC Enel Russia posted a net loss of 49,660 million RUB for the first nine months of 2015, versus a net income of 5,082 million RUB in the same period of 2014. Apart from lower EBITDA, this drop mainly stems from the impairment of part of the company’s assets, as well as higher financial charges that were both due to the worsening economic environment.

Excluding the abovementioned impairment, adjusted net loss for the period amounted to 3,120 million RUB.

Net debt as of September 30th, 2015 stood at 23,186 million RUB, 2,105 million RUB or 10% higher than at the end of 2014. This increase is mainly due to the book revaluation of euro-denominated debt, as the Russian ruble depreciated against the euro over the first nine months of 2015.