PJSC Inter RAO today announced financial results for the first three months of 2016 prepared to the Russian Accounting Standards (RAS).

Indicator *

First three
months of
2016

First three
months of
2015

Change

Revenue

9.5

13.2

-27.8%

Cost of goods sold

6.6

9.2

-28.3%

Gross profit

2.9

4.0

-26.8%

Sales profit/(loss)

1.1

1.7

-35.1%

Net income

1.0

2.0

-52.9%

March 31,

2016

December 31,

2015

Change

Total assets

356.6

354.7

0.5%

Total equity

335.3

334.4

0.3%

Loans and borrowings

1.1

1.0

11.4%

Net debt **

-19.3

-20.8

-7.1%

* Billion rubles unless indicated otherwise. Percentage change (%) is calculated using accounting data in thousand rubles.

** Short-term loans and borrowings plus Long-term loans and borrowings less Cash and cash equivalents less Short-term financial investments (cash in bank accounts)

Income statement

Revenue of JSC Inter RAO for the first three months of 2016 was 9.5 billion rubles, down 3.7 billion rubles (27.8%) from the same period of 2015.

Revenue from electricity export was 7.4 billion rubles, down 3.3 billion rubles (30.6%) from the first three months of 2015. The reduction of export revenues reflects lower export sales in the first three months of 2016 compared to the same period of the previous year. By volume, our export sales reduced to Ukraine (by 98.3%), Kazakhstan (by 28.7%), Belarus (by 16.5%) and Finland (by 15.1%). Revenue from WECM electricity and capacity sales for the first three months of 2016 was 2.1 billion rubles, down 0.4 billion rubles (14.4%) year-on-year. This change primarily reflects the reduction of transit flows between different WECM pricing zones in the first three months of 2016 compared to the same period of the previous year.

Cost of goods sold for the first three months of 2016 was 6.6 billion rubles, down 2.6 billion rubles (28.3%) year-on-year. This change reflects several partially offsetting factors, including 2.7 billion ruble (30.2%) reduction in the cost of electricity and capacity purchased at WECM due to lower export by volume and smaller transit flows between different WECM pricing zones in the first three months of 2016 compared to the same period of the previous year, and 0.1 billion ruble (24.8%) increase in the cost of imported electricity due to higher import by volume.

Gross profit was 2.9 billion rubles compared to 4.0 billion rubles in the first three months of 2015.

Selling costs for the first three months of 2016 were 0.7 billion rubles, down 0.5 billion rubles (43.7%) year-on-year. The primary driver of this change was the lower cost of infrastructure services due to smaller electricity exports by volume.

Administrative costs were 1.2 billion rubles and did not change significantly from the same period of the previous year.

Sales profit for the first three months of 2016 was 1.1 billion rubles compared to 1.7 billion rubles for the same period of the previous year.

Interest receivable was 1.0 billion rubles. The 0.4 billion ruble (28.5%) reduction of interest income compared to the first three months of 2015 reflects smaller interest receivable on intragroup loans due to their repayment, and also lower balance of bank deposits and lower interest rates.

Balance of other income/expenses was (0.8) billion rubles compared to (0.4) billion rubles for the same period of 2015. This change primarily reflects foreign exchange losses resulting from exchange rate fluctuations.

As the result, net profit for the first three months of 2016 was 1.0 billion rubles, compared to 2.0 billion rubles for the same period of 2015.

Balance sheet

Total assets of PJSC Inter RAO as of March 31, 2016, increased by 1.9 billion rubles (0.5%) to 356.6 billion rubles from December 31, 2015.

Non-current assets were 313.6 billion rubles, representing a marginal change from the beginning of the year.

Current assets increased by 2.0 billion rubles (4.9%) during the first three months of 2016, to 43.0 billion rubles as of March 31, 2016. This change primarily reflects the following factors: 1.3 billion ruble (8.2%) increase in short-term accounts receivable; 4.0 billion ruble (100.5%) increase in short-term financial investments due to higher balances of bank deposits with more than three-month maturity; increase in intragroup loans; and 3.4 billion ruble (16.6%) reduction in cash and cash equivalents.

Total debt increased by 0.1 billion rubles (11.4%) to 1.1 billion rubles in the first three months of 2016. The increase in total debt reflects the receipt, in the first quarter of 2016, of a new disbursement under a long-term loan agreement signed in 2015 under the Project-Based Financing Investment Support Program enacted by the Order of the Government of Russia of 11 October 2014, No. 1044. Our debt portfolio consists entirely of long-term loans. Net debt of PJSC Inter RAO as of March 31, 2016 reduced to (19.3) billion rubles compared to (20.8) billion rubles in the beginning of the year.

Total liabilities (excluding loans and borrowings) were 20.2 billion rubles as of March 31, 2016, representing a marginal change from the beginning of the year.

* * *

Inter RAO Group is a diversified energy holding serving various segments of Russian and international electric power industry. The Group is the leading exporter and importer of electricity in Russia actively increasing electricity generation and sales, and developing new lines of business. The corporate strategy of Inter RAO is focused on making Inter RAO a global energy enterprise, a key player in the global energy market, and Russia's leading electric utility by energy efficiency. Inter RAO Group owns and operates 33 GW of installed power generation capacity. www.interrao.ru


OAO INTER RAO UES issued this content on 25 April 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 25 April 2016 07:05:32 UTC

Original Document: http://www.interrao.ru/en/news/company/?ELEMENT_ID=6179