Bashkirian Power Grid Company Announces Financial Results for 1H
OREANDA-NEWS. August 26, 2013. Bashkirian Power Grid Company, subsidiary of Sistema JSFC, the largest publicly-traded diversified holding company in Russia and the CIS, announces its unaudited financial results in accordance with International Financial Reporting Standards (IFRS) for the six months of 2013 ended 30 June, 2013.
Bashkirian Power Grid Company (BPGC) was founded in November 2012 as a result of a reorganisation of OJSC Bashkirenergo, one of Russia's largest regional energy companies, and incorporates power grid assets in the Republic of Bashkortostan: transmission grids (LLC Bashkirian Grid Company), distribution grids (LLC Bashkirenergo), and a service company (LLC Bashenergouchet).
KEY FINANCIAL RESULTS FOR 2Q AND 6M 2013
- Revenue in 1H 2013 increasedby 14% year-on-year and reached RUB 6,462 mln. In 2Q 2013 revenue grew by 8% year-on-year up to RUB 2,987 mln due to increased power consumption and indexation of tariffs.
- OIBDA in 1H 2013 grewby 16% year-on-year and amounted to RUB 2,567 mln driven by increase in revenue and costs optimisation. In 2Q 2013, OIBDA decreased by 24% year-on-year down to RUB 942 mln as a result of shift in the maintenance schedule and increased expenses to compensate electricity losses and planned growth in employees' salaries.
- OIBDA marginincreased to 40% in 1H 2013. OIBDA margin in 2Q 2013 was 32%.
- Net incomedropped in 1H 2013 by 5% year-on-year down to RUB 1,608 mln mainly due to recalculation of corporate income tax expenses for the previous periods and cancellation of fiscal incentives, while in 2Q 2013 net income gained 36% year-on-year and reached RUB 634 mln.
KEY OPERATING RESULTS
- The electricity consumptionincreased by 3% in 1H 2013 and by 5% in 2Q 2013 year-on-year due to low temperatures in March and April in 2013.
- Connections of new consumersincreased by 39% in 1H 2013 and by 42% in 2Q 2013 yar-on-year due to the successful implementation of modernisation programme.
- Distribution grid lossesdeclined from 8.54% to 8.12% in 1H 2013 year-on-year as a result of installation of power metering units with higher accuracy. Transmission grid losses remained at the level of 1.48%.
Commenting on the company's results for the first half of 2013 Andrey Makarov, CEO of BPGC, said:
"BPGC is reporting on its results for the first time after Bashkirenergo reorganization.
Revenue increased by 14% year-on-year, OIBDA margin grew to 40% and the company generated RUB 1.6 billion of net income. This strong financial performance is down to the persistent execution of our operating strategy, including business optimization incentives and investment programme implementation, which is planned at RUB 4 billion with half to be spent on new construction projects.
BPGC consistently works on continuous enhancement of the company's efficiency. The company is implementing projects aimed at automating management processes, creating solutions under GLONASS transport monitoring systems, and installing modern electricity consumption meters for its customers. We managed to reduce losses in distribution grids down to 8.1%. Modernisation programme supported consumer base growth at a high rate.
In the remaining part of 2013, the energy segment will continue to upgrade its production facilities and is expected to sustain profitability. Stable results will support the investment programme implementation at the expected level."