OREANDA-NEWS. OJSC Enel Russia published its operating results and unaudited IFRS financial results for the nine months of 2014.

Operating Results

Net power output in the nine months of 2014 stood at 31,171 GWh, substantially in line with the figure posted in the same period of the previous year (31,255 GWh). The output dynamics by power plant were mixed: Sredneuralskaya and Reftinskaya generated less output than in the nine months of 2013 as a result of a higher amount of modernization and maintenance works in both plants. Power output by Konakovskaya and Nevinnomysskaya increased significantly thanks to lower hydro availability reported in European Russia in the second quarter of 2014 and also to favourable fuel price dynamics. Specifically, in the third quarter of 2014, power output by the conventional gas units of Nevinnomysskaya posted a twofold increase on the third quarter of 2013, due to the high demand for electricity from the System Operator to meet increasing power needs in southern Russia.

Power sales in the reporting period stood at 35,649 GWh, slightly above the figure posted in the corresponding period of 2013 (+0.2% or 62 GWh).

Heat sales stood at 4,124 thousand Gcal, down 7.6% year on year due to warmer temperatures at the beginning of 2014 and modernization of heat generating equipment at Sredneuralskaya GRES.

Financial Results

Operating revenues totaled 54,685 million, up 3,985 million RUR or 7.9% compared with the nine months of 2013, mainly thanks to higher power prices on the day-ahead market.

EBITDA in the nine months of 2014 stood at 13,449 million RUR, 1,161 million RUR or 9.4% above the corresponding period of 2013. EBITDA growth mainly resulted from better profitability of the company's operations on the day-ahead market thanks to favourable fuel price dynamics.

Net income for the period stood at 5,082 million RUR, posting an increase of 45.6% or 1,591 million RUR versus the nine months of 2013. Apart from higher EBITDA, such a strong increase in net income was achieved due to one-off bad debt provision booked in the previous year and lower interest expenses incurred over the nine months of 2014 thanks to repayment of debt. Excluding the one-off item registered in the previous year, net income grew by 17.2% on the corresponding period in 2013.

Net debt as of September 30th, 2014 stood at 19,465 million RUR, substantially in line with the level at the end of 2013 (+0.7% or 143 million RUR).