AFK Sistema : Bashkir Power Grid Company announces H1 2016 results

22/08/2016

Bashkir Power Grid Company announces H1 2016 results

22 August 2016, Ufa - JSC Bashkir Power Grid Company, a subsidiary of Sistema PJSFC, a diversified public holding company, announces unaudited financial results for H1 2016 in accordance with International Financial Reporting Standards (IFRS).

KEY FINANCIAL RESULTS FOR Q2 AND H1 2016:

• Revenue in H1 2016 grew by 4% YoY and amounted to RUB 7,550m. The Q2 revenue went up by 5% YoY, to RUB 3,461m.
• OIBDA in H1 2016 grew by 4% YoY to RUB 2,559m. The Q2 2016 OIBDA was RUB 1,103m, a 4% increase from Q2 2015.
• OIBDA margin was 33.9% in H1 2016 and 31.9% in Q2 2016.
• Net income amounted to RUB 1,261m in H1 2016 and to RUB 521m in Q2 2016.

KEY OPERATING RESULTS:

• Power consumption grew by 0.3% in H1 2016 YoY due to an increase in the number of new consumers.
• Thanks to successful implementation of its investment programme and acceleration of power connections, Bashkirenergo obtained 10,986 new consumers in H1 2016, an increase of 27% from the same period of 2015.
• Power losses in distribution grids declined from 8.2% in H1 2015 to 7.79% in H1 2016 due to the implementation of technological and organisational actions aimed at reduction of power losses at BPGC's grid company.

Commenting on the company's results in H1 2016, BPGC's CEO Dmitry Sharovatov said:

'Despite the turbulent economic environment, BPGC demonstrates steady financial and operating performance. The group's revenue grew 4% year-on-year, mainly due to the growth of electricity supply tariffs and increase in the number of connections to power grids (27% year-on-year). Power losses in distribution grids declined to 7.79% as a result of the company's efficient implementation of its investment policy as well as a number of special organisational and technological actions intended to minimise power losses in the region.

Bashkirenergo is actively implementing its energy conservation and energy saving programme. In the first half of this year, we installed 8,757 metering units of the automatic control and metering system.

BPGC also continues upgrading Ufa's power grids using the Smart Grid technologies. As part of this project, BPGC Engineering, BPGC's subsidiary, manufactures state-of-the-art power grid equipment together with Siemens. This equipment is currently being installed at the city's distribution grid centres.

BPGC is putting a lot of efforts into construction and upgrade of its facilities. This year, we continue building six large substations in Bashkortostan, which will help develop the region's economic potential and tackle social issues.'

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For more information please contact:

Head of Public Relations

Bashkir Power Grid Company

Marat Bikbaev

Tel.: (347) 279-73-80

BikbaevMM@bashkirenergo.ru

Some of the information in this press release may contain estimated or projected indicators or other forward-looking statements regarding future events or future financial performance. We would like to caution you that these statements are only predictions and that the actual events or results may differ materially.

Many objective factors which are beyond our control may cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, but not limited to, general economic conditions, our competitive environment, levels of inventory, production output and product sales, product prices, other risks associated with operating in Russia, drastic technological and market changes.

We do not undertake to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events.