Russian Grids JSC

11/26/2021 | Press release | Distributed by Public on 11/26/2021 03:03

PJSC ROSSETI discloses IFRS Financial Results for the 9 months 2021

26.11.2021

November 26, 2021 Moscow, Russia - PJSC ROSSETI (LSE: RSTI), Russia's largest electricity transmission and distribution grid company, discloses interim condensed unaudited consolidated financial results under the International Financial Reporting Standards (IFRS) for the three and nine months, ended September 30, 2021.

The statements cover PJSC ROSSETI and its subsidiaries (the "Group").

Financial results:

  • Revenue: RUB 798.8 billion (9м2020: RUB 719.3 billion)

  • EBITDA1: RUB 262.9 billion (9м2020: RUB 223.0 billion)

  • Net profit: RUB 104.8 billion (9м2020: RUB 77.9 billion)

Operating results:

  • Electricity transmission: 576.3 bln kWh (9м2020: 536.7 bln kWh)

  • Connected capacity: 6.8 GVA (9м2020: 5.7 GVA)

  • Number of substations: 528 thousand units (9м2020: 517 thousand units)

  • Transformer capacity: 809 GVA (9м2020: 802 GVA)

  • Length of transmission lines: 2.40 million km (9м2020: 2.37 million km)

Key events in the reporting period:

  • In January 2021 Andrey Ryumin was elected as Director General of PJSC ROSSETI.

  • The Annual General Meeting of PJSC Rosseti Shareholders was held.

  • The Russian Government approved Long-term Development Programme of PJSC ROSSETI and its subsidiaries up to 2030.

  • The new Innovative Development Programme of PJSC ROSSETI was approved.

  • The Analytical Credit Rating Agency (ACRA) has confirmed the credit rating of PJSC ROSSETI and its bonds at AAA (RU) with a "stable" outlook.

  • ACRA has assigned an ESG rating of ESG-3 to the Rosseti Group, confirming "a very high level of compliance with best practices".

  • Standard and Poor's has raised its assessment of PJSC ROSSETI creditworthiness by one notch (from "bb" to "bb+").

Events after the reporting date:

  • PJSC ROSSETI was awarded with the first place in nomination "Leadership at ESG transparency among grid companies" in a debut ESG ranking by Credit Rating Agency "Expert RA".

  • PJSC ROSSETI and Rosprirodnadzor have concluded an agreement on cooperation in the field of environmental protection.

Financial results:
Financial indicator 9m2021,
 bln RUB 		9m2020,
bln RUB 		Change,
%
Revenue 798.8 719.3 11.1
Operating expenses (665.2) (614.5) 8.3
EBITDA1 262.9 223.0 17.9
Net profit 104.8 77.9 34.5
Net debt 416.5 457.92 (9.0)

Rosseti Group's revenue for 9m2021 increased by RUB 79.5 bln (+11.1 % YoY) and was driven by:

  • Increase in revenue from electricity transmission services due to tariff indexation and increase in electricity consumption.

  • Increase in revenue from electricity sales caused by increased energy consumption.

  • Increase of other revenue mainly from construction services.

Operating expenses

Financial indicator 9m2021,
 bln RUB 		9m2020,
bln RUB 		Change,
%
Electricity transmission services 124.9 115.1 8.5
Electricity for compensation of losses 116.9 101.3 15.4
Amortization 110.1 103.5 6.4
Electricity for sale 40.5 35.1 15.4
Taxes and levies other than income tax 21.2 20.5 3.4
Other operating expenses 251.6 239.0 5.3
Total operating expenses 665.2 614.5 8.3

The increase in the operating expenses is mainly due to higher expenses for purchased electricity for compensation of losses and for purchased electricity for sale.

Detailed information on Rosseti's interim condensed unaudited consolidated IFRS financial statements for the three and nine months ended September 30, 2021 is available at the Company's website at: https://www.rosseti.ru/eng/investors/reports/fin-inf/.

1 EBITDA, calculated as earnings before interest, taxation, depreciation and amortization.

2 Net debt amount as of 31.12.2020