The changes in the Group's financial performance were significantly affected by the following key factors and events:
Commissioning of 1,470 GW of new and upgraded power generation capacity under Capacity Delivery Agreements (CDA);
Increase in average heat sales prices for end consumers across Russian assets of the Group;
Optimization of capacity utilization in the Electric Power Generation Segment, including retirement of inefficient power generation equipment with a total installed capacity of 1,271 MW;
Increase in average end consumer sales prices in the Supply Segment of the Group;
Strengthening of the ruble against the U.S. dollar and euro;
Complete sale of a stake in Electric Networks of Armenia and Razdan Energy Company (Razdan TPP) in December 2016; consequently, these companies did not deliver financial performance in 2017.
The increase in revenue in the Supply Segment by 64.2 billion rubles (11.4%) to 627.1 billion rubles is related both to higher average sales prices of suppliers of last resort for end consumers, and the acquisition of new customers by independent retailers.
The increase in revenue in the Electric Power Generation Segment by 6.0 billion rubles (5.1%) to 123.8 billion rubles is related mainly due to commissioning of power unit No. 12 at Verkhnetagilskaya TPP with installed capacity of 447 MW, and power unit No. 4 at Permskaya TPP with installed capacity of 861MW (it was subsequently recertified to 903 MW) under CDAs. Additional effect was related to increasing the number of connected pieces of equipment and the growth of installed capacity due to relabeling of equipment at several plants and an increase in electricity and capacity sales prices under regulated contracts due to the growth of tariffs approved by the Federal Antimonopoly Service of Russia in July 2017 and 2016.
Revenue in the Thermal Power Generation Segment which includes TGK-11 Group4 and Bashkir Generation Company Group, increased by 0.9 billion rubles (1.3%) to 71.2 billion rubles. The positive effect is related mainly to the increase in average heat sales prices in the Republic of Bashkortostan, the Omsk Region and the Tomsk Region compared to a similar period, as well as commissioning of a 120 MW generator at Omskaya TPP-3. There was also a reduction in power generation at several power plants in the segment given a decline in margin.
Revenue of the Trading Segment decreased by 23.0 billion rubles (29.0%) compared to the similar period and amounted to 56.4 billion rubles in 2017 against 79.4 billion rubles in 2016. The revenue decreased due the strengthening of the ruble against the main currencies of export contracts (U.S. dollar and euro), as well as to the reduction in supply to Belarus in accordance with market conditions.
A decrease in the revenue in the Foreign Assets segment by 5.3 billion rubles (16.5%) to 26.8 billion rubles is related primarily to a decline in the output at Trakya Elektrik plant in Turkey due to a shutdown for repairs in May and June 2017, and the impact of the strengthening of the ruble against the U.S. dollar and the Georgian lari, which caused a decline in the revenue of foreign companies expressed in rubles, and divestment of Mtkvari Energy of the Group in June 2016.
Operating expenses increased by 39.4 billion rubles (4.7%) to 869.5 billion rubles compared to the previous reporting period, which is lower than the growth of revenue.
Electricity transmission costs increased by 21.5 billion rubles (9.1%) to 256.4 billion rubles; this is related to the performance in the Supply Segment and the increase in electricity consumption and electricity transmission fees.
Cost of purchased electricity and capacity increased by 17.3 billion rubles (5.3%) to 345.0 billion rubles compared to the similar period. This was related primarily to the growth of market prices for purchased capacity, as well as to the increase in sales in the Supply Segment.
Fuel costs remained changed very little compared to the similar period and amounted to 124.6 billion rubles. There are diverse factors behind the changes: a decrease in the output at Trakya Elektrik plant due to repairs, divestment of Mtkvari Energy of the Group in June 2016, and strengthening of the ruble against the U.S. dollar and euro caused a decline, while the growth of output in the Electric Power Generation Segment and indexation of gas prices in accordance with the order of the Federal Antimonopoly Service starting from July 1, 2017 increased the costs.
Provision for impairment of fixed assets. In 2017, the impairment of fixed assets of Cherepetskaya TPP, Gusinooozerskaya TPP, Iriklinskaya TPP and Kashirskaya TPP, as well as of fixed assets of JSC Tomsk Generation and JSC TGK-11 totaling 11.0 billion rubles was recognized. In the similar period the recognized impairment amounted to 4.1 billion rubles.
EBITDA was 95.5 billion rubles, having decreased by 0.8%. When EBITDA is adjusted for the impact of assets in Armenia and Georgia divested of the Group in 2016, and for reclassification of an asset in Kazakhstan, the change in EBITDA becomes positive: the increase is 2.1%.
In the Electric Power Generation Segment, EBITDA increased by 3.0 billion rubles to 56.7 billion rubles. The growth is related to several diverse factors. A considerable positive impact is due to commissioning of power unit No. 12 at Verkhnetagilskaya TPP and power unit No. 4 at Permskaya TPP under CDAs. Besides, the growth was related to an increase in the number of connected pieces of equipment, increase in installed capacity of power plants due to relabeling of power units and planned retirement of inefficient capacity. Scheduled repairs at Yuzhnouralskaya TPP caused both the increase in costs and a decline in electricity generation.
In the Supply Segment, EBITDA increased by 2.6 billion rubles (17.4%) to 17.8 billion rubles. This was related mainly to the fact that the revenue from electricity sales grew stronger than the cost of purchased electricity and its transmission, which is due to the nature of tariff regulation. Besides, there was a positive effect in the additional paid services segment.
In the Thermal Power Generation Segment, EBITDA decreased by 0.12 billion rubles (1.3%) to 13.5 billion rubles. Considerable expenditure on maintenance of heating networks in Bashkortostan and a decline in electricity generation at power plants in the republic offset the positive impact of the increase in heat prices. TGK-11 Group improved its EBITDA due to the increase in heat output and heat prices and to the changes in the breakdown of capacity sales by power generation facility.
In the Trading Segment, EBITDA decreased by 2.7 billion rubles and amounted to 7.4 billion rubles. This is related mainly to the strengthening of the ruble against the currencies of exports.
EBITDA showed a significant reduction in the Foreign Assets Segment. The indicator amounted to 6.1 billion rubles, having decreased by 4.7 billion rubles. The decrease was related to the disposal of Electric Networks of Armenia, Razdan Energy Company (Razdan TPP) and Mtkvari Energy of the Group (last year, the impact of these assets on EBITDA totaled 2.0 billion rubles) and classification of a 50% stake in the Ekibastuzskaya TPP-2 joint venture as assets classified as available-for-sale (in the previous reporting period, the impact on EBITDA was 0.8 billion rubles), as well as the strengthening of the ruble against the U.S. dollar and lari, which resulted in a reduction in financial performance of foreign assets expressed in rubles. In addition, the indicator declined due to the decrease in the output of Trakya Elektrik related to repairs in the second quarter of 2017.
The share of profits in associated entities and joint ventures declined by 52.3% amounting to 2.6 billion rubles.
The reduction in the share of profits in associated entities and joint ventures is related primarily to the fact that there was no profit from participation in joint ventures of Electric Networks of Armenia and Razdan Energy Company (Razdan TPP) due to the sale of stakes in these companies in December 2016, as well as classification of the 50% stake in the Ekibastuzskaya TPP-2 joint venture as assets available-for-sale starting from December 1, 2016.
In 2017, the Group's net income amounted to 54.4 billion rubles. Higher income in 2016 is related mainly to a one-time impact of recognizing the income from selling a stake in PJSC Irkutskenergo amounting to 31.9 billion rubles.
Total assets increased by 53.5 billion rubles (9.4%), amounting to 625.1 billion rubles.
Total assets of the Group increased mainly due to accumulation of funds generated by the Group in the reporting period on settlement accounts and deposits, and due to the acquisition of rights to claim on CDAs for CCGT-420 of power unit No.12 of Verkhnetagilskaya TPP. This positive impact was partially offset by accrued impairment of fixed assets of several power generation facilities of the Group.
Equity increased by 40.2 billion rubles (9.6%), amounting to 459.4 billion rubles.
The increase in equity due to the recognition of net income for the reporting period was partially offset by an impact of distribution of dividends for 2016.
Total liabilities amounted to 165.6 billion rubles, having increased by 13.3 billion rubles (8.7%).
Total liabilities increased due to a considerable amount of advance payments received as part of building Pregolskaya TPP and Primorskaya TPP in the Kaliningrad Region. Besides, accounts payable on the acquisition of rights to claim on a CDA for Verkhnetagilskaya TPP were recognized.
Debt load including the Group's share of the debt of joint ventures decreased by 7.6% to 16.4 billion rubles.
Total loans and borrowings of the Group's subsidiaries, not including the share of the debt of joint ventures, decreased by 1.2 billion rubles (6.8%) to 16.4 billion rubles as a result of scheduled repayment of loans and repayment ahead of schedule.
The ratio of long-term debt to short-term debt as of December 31, 2017 (not including the share of loans and borrowings of joint ventures) amounted to 28.7% versus 71.3% (on December 31, 2016 it was 50.4% versus 49.6%).
The amount of external loans and borrowings of joint ventures in the structure of consolidated debt amounted to 0.2 billion rubles in the previous period and was represented by the debt of CSJC Kambaratinskaya HPP-1. As of the reporting date, the debt of CSJC Kambaratinskaya HPP-1 was not included in the Group's financial performance due to the sale of a stake in this company in December 2017.
The Group's net debt considering deposits maturing in 3 to 12 months as of December 31, 2017 totaled -147.9 billion rubles against - 78.2 billion rubles as of the beginning of 2017.
The changes in the indicators are related to receiving funds from operations of the Group's subsidiaries, scheduled repayment of part of accounts receivable as part of selling a stake of PJSC Irkutskenergo, and to receiving cash to repay the debt under loan agreements from Nizhnevartovskaya TPP and Electric Networks of Armenia with the reduction in the debt load.
26 Ноября 2024 | вторник | 00:58
