OGK 2 PAO : -2 IFRS EBITDA for 1Q 2016 grew by 4.6 %

OGK-2 IFRS EBITDA for 1Q 2016 grew by 4.6 %
26.05.2016

OGK-2 releases unaudited interim consolidated abbreviated Financial Statements for the 3 months ended March 31, 2016, prepared in accordance with International Financial Reporting Standards (IFRS).

* EBITDA= Operating profit + Depreciation and Amortization.

** Restated with consideration of acquisition of a company under common control

The revenue of OGK-2 for 3M 2016 totaled RUR 32,118 mn, up by 3.3% or by RUR 1,016 mn year-on-year. The revenue dynamics were determined by growing revenue from capacity sales on the account of objects under CSA (commissioning of CCGT-420 at Serovskaya station and finalized reconstruction of unit #2 at Ryazanskaya station with capacity growing by 60 MW at the end of 2015) with contracting revenue from electricity sales on the back of lower production.

Operating expenses for 3M 2016 totaled RUR 28,133 mn, growing thus by 4.4% year-on-year, among other things, on the account depreciation growth caused by commissioning of objects under CSA.

Operating profit for 3M 2016 decreased by RUR 46 mn year-on-year down to RUR 4,097 mn.

OGK-2 Group Profit for 3M 2016 decreased by 27.4% down to RUR 2,667 mn, mostly on the account of expenses for debts required for the investment program implementation under CSA.

EBITDA for 3M 2016 grew by 4.6 year-on-year, up to RUR 5,968 mn.

OGK-2 CEO Denis Bashuk noted: 'In 1Q 2016 the company assured growth of the cash flow from operating activities by 33% year-on-year (RUR 5,809 mn vs RUR 4,372 mn). Growing operating efficiency, lower fuel consumption and launch of two CSA-units (CCGT-420 at Serovskaya station and unit #2 at Ryazanskaya station) became the growth factors'.

The detailed information about OGK-2 performance in 3M 2016

in accordance with IFRS is available at the company's website in the IFRS Financial Reports section.

For reference:

OGK-2 is a leading thermal generator, including 11 operating power plants and one under construction, with total installed capacity of 18.5 GW. Company branches produced 64 bln kWh of electricity in 2015 (circa 6% of the total production in Russia). Fuel mix: 65% - gas, 35% - coal.

The Company includes: Adlerskaya TPS, Kirishskaya State District Power Plant, Krasnoyarskskaya State District Power Plant 2, Pskovskaya State District Power Plant, Novocherkasskaya State District Power Plant, Ryazanskaya State District Power Plant, Serovskaya State District Power Plant, Stavropolskaya State District Power Plant, Surgutskaya State District Power Plant 1, Troitskskaya State District Power Plant, Cherepovetskaya State District Power Plant, Groznenskaya TPS.

The Company's controlling shareholder is 'Gazprom Energoholding' LLC (100% subsidiary of 'Gazprom' JSC).