The results of the first quarter of 2017 confirm sustainable development of Rosseti
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The results of the first quarter of 2017 confirm sustainable development of Rosseti

08.06.2017

The “Rosseti”Group has summed up the activity in the first quarter of 2017, which testify the correctness of the chosen strategy and literacy of the measures taken by management team on assuring the financial stability of power grid, reliability and availability of power supply to consumers.

According to intermediate (unaudited) financial results of “Rosseti” Group on IFRS, the revenue has grown by 12.8 billion rubles or 5.9% from the last year and made 230.9 billion rubles. Revenue growth from power transmission has made 9.1% - the indicator has increased to 203.7 billion rubles.

The revenue from sales of electric power and capacity have decreased by 1.4 billion rubles or 6.8%, generally due to the termination of the electric power realization of one of the Group –“FGC UES” (affiliated structure of PJSC “Rosseti”).

The decrease of other revenue by 2.8 billion rubles is caused by reduction of general contract works, executed by subsidiaries of PJSC “FGC UES”, almost by 4 times (on 2.2 billion rubles) due to the end of large stages of works in the previous reporting periods.

Operating expenses in the I quarter of 2017 haven't changed significantly in comparison with the same period of last year and have made 186.3 billion rubles.

The dynamics of net profit in the reporting period is also caused by reflection of other expenses on change of the structure of the Group (restoration of control over the subsidiary OJSC “Nurenergo”).

At the same time, the adjusted net profit without this factor has grown in the I quarter of 2017 by 52.7% in comparison with the same period of the last year and has made 39.4 billion rubles, and the growth of the adjusted EBITDA has made 20.7% up to the level of 84.1 billion rubles.

“In the current year, the “Rosseti” Company has continued realization of the set of measures, directed to increase the effective management in the power grid. The results of the work for the first three months of 2017 confirm the entrance to a whole new level both on profitability and financial stability of theGroup, and on ensuring reliability and availability of power supply for consumers. We have managed to achieve such indicators thanks to harmonious actions of highly professional personnel with continued support of federal and regional authorities, partners and investors,” - the Deputy General Manager for Economics of the “Rosseti” company Oksana Shatokhina has commented on the received results.

For reference
The main corporate events of the reporting period:
The Board of Directors has approved the new Environmental policy forpower grid defining dynamic development at the most rational use of natural resources and preservation of the favorable environment as the work principle of “Rosseti”.

The MOEX has made the decision on the transition of common stocks of PJSC “Rosseti” from the second level of the quotation list to the first level. According to normative documents of the Bank of Russia and the MOEX, the greatest demands for liquidity, financial statements and corporate management are made on the securities included in the first level of the quotation list and to their issuers.

Following the results of 2016, PJSC “Rosseti” is recognized as the winner of the annual National award "" handed by the National association of internal auditors and controllers in the nomination "The Best Company on the Level of Reliability of Internal Control System".

The new Code of corporate ethics and official behavior of PJSC “Rosseti” is approved.

The new method of performance calculation and assessment of the key indicators of efficiency (KIE) of the CEO of PJSC “Rosseti” is approved.

Key financial results on IFRS:

Index
1 quarter of 2017, billion rubles
1 quarterof 2016, billion rubles
Change, %
Revenue, including:
230.9
218.1
5.9
- Electrical energy transmission
203.7
186.7
9.1
- Sale of electric power and capacity
19.1
20.5
(6.8)
Оperating expenses
186.3
185.2
0.6
Other net expenses/incomes
(8.1)
3.3
-
EBITDA
67.5
67.4
0.1
Adjusted EBITDA:
84.1
69.7
20.7
Net profit (loss)
23.6
24.0
(1.7)
Adjusted net profit:
39.4
25.8
52.7
Net cash flow from operating activities
49.0
43.8
11.9



1Adjusted EBITDA indicator is calculated as EBITDA (profit for the reporting period prior to deduction of taxes, percentage expenses and depreciation), without losses from devaluation of financial investments and impairment of receivables, losses from restoration of control over subsidiary.
2 Adjusted net profit for the reporting period is calculated as net profit for the period, without losses from devaluation of financial investments, impairment of receivables and the related deferred expenses on income tax, losses from restoration of control over subsidiary.



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