|Profit (loss) from sales||11,487.1||9,997.5||9,103.3||–894.2||–8.9|
|Income from shareholdings||19.1||38.8||17.7||–21.1||–54.4|
|Profit (loss) before tax||1,929.4||4,863.9||1,964.3||–2,899.6||–59.6|
|Income tax and other charges||1,636.5||1,538.0||1,055.3||–482.7||–31.4|
|Net profit (loss)||292.9||3,325.9||909.0||–2,416.9||–72.7|
|EBITDAThe formula for EBIDTA calculation: Profit before tax — Interest payable + Depreciation = line 2300 form 2 — line 2330 form 2 + line 6514 form 2.1+ line 6554 form 2.1+ line 6564 form 2.1.||11,599.4||15,740.5||15,219.2||–521.3||–3.3|
Financial Report 2015 shows the RAS in Appendix to this Annual Report.
Five branches of the Company acted as guaranteeing electricity suppliers in
Due to the accounting specifics, the revenue from electricity sales (data for
|Electricity transmission (Russian Accounting Standards)||61,396.2||69,151.5||77,733.6||8,582.1||12.4|
|Electricity transmission, incl. internal electricity sales||75,181.5||75,904.4||77,733.6||1,829.2||2.4|
|Electricity sales (Russian Accounting Standards)||29,770.0||15,053.0||0.0|
|Electricity sales, excl. internal electricity transmission||15,984.7||8,300.1||0.0||–8,300.1||–100.0|
According to 2015 results, the Company’s revenue decreased by RUB 6,888 mln (-7.9%) compared to 2014 and amounted to RUB 79,817.2 mln. This reduction is due to the fact that IDGC of Centre gave up its functions of the guaranteeing supplier in 2014, which the Company performed since 2013. In late 2013 — early 2014, tenders were held by the Ministry of Energy of the Russian Federation to choose new guaranteeing suppliers in the regions. Starting from February 1, 2014, the functions of the guaranteeing supplier were transferred to the following companies, which won tenders:
- Orelenergo — February 1, 2014;
- Kurskenergo, Tverenergo — April 1, 2014;
- Bryanskenergo, Smolenskenergo — June 1, 2014.
According to 2014 results, revenue from electricity sales amounted to RUB 8,300.1 mln, and in particular RUB 2,402.7 mln received by Bryanskenergo, RUB 1,085.3 mln — Kurskenergo, RUB 199.6 mln — Orelenergo, RUB 2,443.2 mln — Smolenskenergo and RUB 2,169.2 mln at Tverenergo.
Revenue from electricity transmission increased by RUB 1,829.2 mln (2.4%) in 2015 compared to 2014. This increase happened due to the gain in net supply by RUB 568 mln, average tariff growth by RUB 1,459.4 mln as a result of a change in net supply structure, and load loss reduction by RUB 198.1 mln.
The revenue from grid connection services amounted to RUB 1,159.7 mln in 2015, which is down 22.5% vs. 2014. This decrease was due to the fulfilment of major contracts in 2014: Tverenergo (IIK OJSC — RUB 127.71 mln), Kurskenergo (Vozrozhdenie, LLC — RUB 148.13 mln Voronezhenergo (Rosenergoatom branch — RUB 139.05 mln).
The revenue from other activities includes the revenue from additional services and leasing revenue. Revenue from additional services amounted to RUB 923.9 mln in 2015, which is down RUB 81.3 mln (8.1%) vs. 2014. The Company (in particular the branch of Smolenskenergo) had a contract for complex maintenance of outdoor lighting grids (for technical maintenance and electricity consumption) in 2014. Starting from 2015 the Company has a new contract only for maintenance of the outdoor lighting grids.
The production costs of electricity transmission and the production costs of electricity sales are given separately in accordance with RAS statements, and in comparable conditions, in view of the fact that some of the electricity transmission costs were included in the production costs of electricity sales.
|Production costs and sales costsProduction costs with Management costs and Selling expenses.||81,460.4||76,707.7||70,713.9||–7.8|
|Electricity transmission (Russian Accounting Standards)||65,089.6||67,658.0||69,756.1||2,098.1||3.1|
|Electricity transmission, incl. internal electricity sales||65,423.2||67,860.1||69,756.1||1,896.0||2.8|
|Electricity sales (Russian Accounting Standards)||15,667.3||8,193.0||0.0||–8,193.0|
|Electricity sales, excl. internal electricity transmission||15,333.7||7,990.9||0.0||–7,990.9||–100.0|
In 2015, the total amount of production costs was RUB 70,713.9 mln. The greater part (98.6% of the total, or RUB 69,756.1 mln) consists of electricity transmission costs. The grid connection costs amounted to RUB 429.4 mln (0.6% of the total), other costs: RUB 528.4 mln (0.8% of the total). The reduction in production costs and sales costs vs. 2014 was RUB 5,993.8 mln, or 7.8%, which is due to the reduction of the cost of purchased energy for sale as the result of the transfer of the guaranteeing supplier function.
|Uncontrolled costs — Total||58,749.3||53,072.7||46,361.3||–12.6|
|Loss compensation costs||9,864.7||9,833.725||10,594.9||761.2||7.7|
|Services of PJSC FGC UES||14,737.3||15,355.9||15,259.8||–96.1||–0.6|
|Services of territorial grid companies||12,442.6||12,169.8||11,447.1||–722.7||–5.9|
|Amortisation of fixed and intangible assets||7,558.4||8,375.0||9,059.5||684.5||8.2|
|Purchased electricity for sale||14,146.3||7,338.3||0.0||–7,338.3|
|Controlled costs — Total||22,711.1||23,635.0||24,352.6||717.6||3.0|
|Personnel expenses (payroll, mandatory social security charges, non—government pension funds)||14,402.6||15,402.7||16,286.7||884.0||5.7|
In 2015, the uncontrolled costs amounted to RUB 46,361.3 mln (65.6% of the total costs) which is RUB 6 711.4 mln, or a 12.9% decrease compared to 2014. The key factors that affected the reduction in costs were as follows:
- No purchased electricity for sale in 2015 as compared to RUB 7,338.3 mln in 2014, because in 2015 the functions of the guaranteeing supplier were transferred to new companies based on tender results.
- Loss compensation costs amounted to RUB 10,594.9 mln, an increase by RUB 761.2 mln. (7.7%) compared to 2014, which is due to the growth in average prices on the wholesale electricity market and integration of the power grid assets of Yargorelectroset OJSC.
- The services of PJSC FGC UES amounted to RUB 15,355.9 mln, a decrease by RUB 96.1 mln (0.6%) compared to 2014, which was mainly due to a reduction in the average rate for compensation of normative losses calculated since July 1, 2015 with the changes introduced into some acts of the Government of the Russian Federation pursuant to Decree No. 458 by the Government of the Russian Federation dated May 11, 2015 in order to improve the procedure of electricity volume purchase at the wholesale market for delivery to the households and to equivalent categories of consumers and of electricity volume purchase by the Unified National Power Grid (actual in 2014 — 1,572 RUB/kWh thous, actual in 2015 — 1,448 RUB/kWh thous).
- Reduction of costs for services of territorial grid companies by RUB 722.7 mln (5.9%) due to a reduction in the transfer balance in the grid of adjacent territorial grid companies.
- Depreciation of fixed and intangible assets amounted to RUB 9,059.5 mln, an increase by RUB 684.5 mln (8.2%) compared to 2014 based on commissioning of the fixed assets.
In 2015, controlled costs amounted to RUB 24,352 mln (34.4% of the total costs), which is RUB 717.6 mln, or a 3% increase compared to 2014, including:
- Increase of material costs by RUB 34 mln (1.2%) due to growth in prices, in particular for fuel and lubricants and due to costs increase related to the integration of Yargorelectroset OJSC into the Yarenergo branch.
- Increase of production-related services by RUB 90.7 mln (13.1%) due to the increased volume of additional services provided.
- Increase of personnel expenses (payroll, mandatory social security charges, non-government pension funds) by RUB 884 mln (5.7%) due to indexation of the employees’ salaries (the minimum monthly pay rate in the Company increased by 9.7%) and changes in the remuneration scheme for managers and specialists since May 1, 2015 (transfer to a new grade system and a salary increase of for key and deficit jobs: senior specialist of the power distribution zone, power section supervisor, dispatcher, etc.).
- Reduction of other costs by RUB 291.1 mln (6.3%) due to reduction of leasing expenses and consulting services and increase of the property tax.
Profit from sales
Profit from sales amounted to RUB 9,103.3 mln in 2015, which is a RUB 894.2 mln (8.9%) reduction compared to 2014. This reduction was mainly due to revenue reduction by RUB 6.888 mln with reduction in production costs by RUB 5,427.7 mln, and due to an increase in management costs by RUB 86.3 mln (4.1%); there were no selling expenses in the reporting year (compared to RUB 652.6 mln in 2014).
Other revenues and expenses, incl. income from shareholdings, interest receivable and payable
In 2015, the balance of other revenues and expenses amounted to RUB (
In 2015, other revenues decreased by RUB 1,317.5 mln compared to 2014 in the following items:
- Profit of the previous years detected in the reporting period: a decrease of RUB 257 mln as a result of the adjustment postings for electricity transmission in 2014.
- Replenishment of reserves: a decrease of RUB 1,055.6 mln due to replenishment of bad debt provisions in 2014 as a result of the repayment of debts by the debtor, and signing of adjustment postings. In 2015, replenishment of reserves was done through lawsuits based on court judgements.
- Other miscellaneous revenues: a decrease by RUB 732.8 mln, mainly due to a contract for assignment of the claim between IDGC of Centre and Belgorod Energy Sales Company LLC concerning electricity transmission services rendered by OJSC Belgorodenergosbyt, and due to the recognition of the property of Yargorelectroset OJSC equal to the share of IDGC of Centre in the authorised capital of Yargorelectroset OJSC, being the subsidiary.
In 2015, other revenues increased compared to 2014 in the following items:
- Interest receivable: an increase by RUB 160.6 mln due to an increase in the key rate by the Bank of Russia and, accordingly, an increase in deposit rates in 2015. Moreover the establishment of the Unified Treasury resulted in that payment days in the Company are twice a week, which increased the average period of disposable monetary resources to 9.8 days (compared to 4 days in 2014).
- Other revenues related to assets: an increase by RUB 457.9 mln due to posting of equipment and supplies revealed during the inventory and liquidation of fixed assets, and due to higher income from the revaluation of financial assets.
In 2015, other expenses increased by RUB 687.9 mln compared to 2014 in the following items:
- Interest payable: an increase by RUB 1,693.8 mln related to an increase of loan rates in 2015 (including the increase in the key rate by the Bank of Russia and the situation on the financial market) and also due to increased loans receivable of the Company (by RUB 4,885 mln compared to 2014).
- Expenses related to the salaries of production employees paid from profit: an increase by RUB 407.4 mln due to the change in the procedure of vacation allowance accounting (in 2014 these expenses were charged as production costs, and in 2015 — as profit).
- Allocations to valuation reserves: an increase by RUB 356.3 mln due to the replenishment of reserves from bad debts and lawsuits.
In 2015, other expenses decreased compared to 2014 in the following items:
- Loss of the previous years detected in the reporting period: a decrease by RUB 1,053.2 mln as a result of the adjustment postings for electricity transmission in 2014.
- Other miscellaneous expenses: a decrease by RUB 961.3 mln mainly due to a contract for assignment of the claim between IDGC of Centre and Belgorod Energy Sales Company LLC concerning electricity transmission services rendered by OJSC Belgorodenergosbyt, and due to posting of expenses related to liquidation of Yargorelectroset OJSC, being a subsidiary.
In 2015, profit before tax amounted to RUB 1,964.3 mln which is RUB 2,899.6 less compared to 2014. Income tax and other charges amounted to RUB 1,055.3 mln.
Thus, in 2015 there was net profit of RUB 909 mln, a decrease by RUB 2,416.9 mln compared to 2014.
|Grid connectionAmount of the grid connection liabilities included into financial statements as part of net profit.||509.9||910.8||584.2||–326.6||–35.9|
|Parameter||Measurement unit||for 2012||for 2013||for 2014|
|Net retained earnings||RUB mln||3,450.7||292.9||3,325.9|
|reserve fund||RUB mln||—||—||—|
|profit for development||RUB mln||2,587.8||216.9||2,494.2|
|Share in net profit||%||25.0||25.9||25.0|
|Repayment of losses of previous years||RUB mln||—||—||—|
|Amount of dividend per 1 share||RUB||0.02044||0.0018||0.0197|
The decision on profit distribution for 2015 will be made at the Annual General Meeting of Shareholders based on the recommendations by the Board of Directors of the Company.
EBITDA amounted to RUB 15,219.2 mln in 2015, which is a decrease by RUB 521.3 mln, or 3.3%, compared to 2014. This decrease happened due to:
- A decrease in revenue by RUB 6,888 mln;
- A decrease in costs (without amortisation) by RUB 6,678.3 mln, mainly for the purchased electricity (RUB —7,338.3 mln);
- An increase of the balance of other revenues and expenses (without the interest payable) by RUB 311.6 mln mainly due to the replenishment of bad debt provisions in 2014.