Enel Russia posts solid results and produces first green energy in 1h 2021

Moscow, July 28^th, 2021 - PJSC Enel Russia publishes its reviewed interim financial results for 1H 2021 in accordance with the International Financial Reporting Standards (IFRS).

• Revenues showed a marginal increase being balanced by the following two factors:

- On a positive side, revenues were supported by increased electricity and heat sales derived from the strong demand in the energy system, mostly caused by favorable weather conditions and improved economic activity. Furthermore, a positive impact derives from solid market electricity (DAM) prices throughout the whole period, mostly caused by higher electricity demand, in the European Russia and the Urals (the first price zone). Finally, the annual increase of regulated tariffs and indexation of free capacity (KOM) prices for 2021 further contributed to the growth of revenues.

- On a negative side, revenues were affected by the end of thermal CSAs of the CCGT units at NGRES and SGRES, which were substituted by lower KOM payments starting from 2021.

• EBITDA felt by 28.8%, mostly due to the expiration of thermal CSAs, which contributed to the change in the composition of revenues. Expectedly, capacity sales went down by 34.9% YoY to Rub 4.7 Bn, only partially compensated by growing electricity margin, which came up by 57.4% YoY to Rub 1.8 Bn, thanks to increasing electricity sales. Furthermore, EBITDA figure was additionally supported by a series of managerial efforts on fixed costs economies.
• EBIT decreased by 32.6%, underperforming the dynamics of EBITDA, mostly due to depreciation and amortization expenses which are impacted by the beginning of commercial operation of Azovskaya windfarm.
• Net income came in lower by 27.7%, mostly driven by the improved net financial expenses mostly due to favorable foreign exchange dynamics, compared to 1H 2020, when a substantial RUB depreciation took place.
• Net debt as of June 30^th, 2021 expectedly continued to grow and amounted to Rub 20.7 Bn, up from the level of Rub 13.7 Bn as of December 31^st, 2020, following the intensification of works on Kola windfarm construction project.

  OPERATIONAL HIGHLIGHTS