Revenue of PJSC Inter RAO for 1H 2015 up 70.3%
OREANDA-NEWS. PJSC Inter RAO today announced financial results prepared to the Russian Accounting Standards (RAS) for the first six months of 2015.
Revenue of PJSC Inter RAO for the first six months of 2015 was 25.0 billion rubles, up 10.3 billion rubles (70.3%) from the first six months of 2014.
Revenue from electricity export was 17.1 billion rubles, up 8.8 billion rubles (106.4%) from the first six months of 2014. This increase in export revenue primarily reflects the change in ruble sales prices reflecting a significant hike of currency exchange rates in the first six months of 2015 compared to the same period of the previous year, and also larger sales volumes due to favorable market conditions and the shortage of electricity in the Unified Energy Systems of Ukraine.
The strongest increases in electricity exports by volume are attributable to Finland (93.5%), Belarus (23.1%), Lithuania (10.6%) and Ukraine (by a factor of 70.9). Revenue from electricity and capacity sales on WECM in the first six months of 2015 was 5.0 billion rubles, up 1.0 billion rubles (24.0%) year-on-year. This increase reflects larger transit flows across WECM pricing zones and higher net electricity sales price in the balancing market.
Revenue from other sales in the first six months of 2015 was 2.9 billion rubles. The 0.5 billion ruble (23.1%) increase in other revenue is associated with scheduled shipments of gas turbine units to Venezuela.
Cost of goods sold in the first six months of 2015 was 18.6 billion rubles, up 6.5 billion rubles (53.4%) from the same period of 2014. This change was driven by several factors partially offsetting one another, including 6.9 billion ruble (83.1%) increase in cost of electricity and capacity purchased at WECM due to larger export and higher transit flows across WECM pricing zones; 0.9 billion ruble (51.7%) decrease in cost of electricity imported due to lower commercial imports; and 0.4 billion ruble (19.9%) increase in cost of other sales.
Gross profit for the first six months of 2015 was 6.4 billion rubles compared to 2.5 billion rubles in the same period of the previous year.
Selling costs for the first six months of 2015 were 2.2 billion rubles, up 0.9 billion rubles (68.0%) from the first six months of 2014. Higher cost of infrastructure services due to larger export volume was the primary driver of this change.
Administrative expenses for the first six months of 2015 were 2.8 billion rubles, up 0.7 billion rubles (31.7%) from the first six months of 2014. This increase was primarily driven by the adoption of the new Compensation Policy, changes in future cost allowances, and larger ruble costs associated with agreements with liabilities denominated in foreign currency due to appreciation of US dollar and euro against ruble.
Sales profit for the first six months of 2015 was 1.4 billion rubles compared to sales loss of (0.9) billion rubles for the same period of the previous year.
Income from share ownership in other companies were 1.7 billion rubles, up 0.1 billion rubles year-on-year, reflecting larger dividend payments from Group subsidiaries.
Interest receivable was 2.6 billion rubles. Interest income increased by 0.6 billion rubles (31.1%) year-on-year due to higher interest rates on bank accounts and larger overall balance of loans extended to Group subsidiaries.
Balance of other income/(expenses) for the first six months of 2015 was (1.0) billion rubles compared to (0.05) billion rubles for the same period of 2014. This change is primarily associated with restatement of assets denominated in foreign currencies.
As the result, net profit for the first six months of 2015 was 3.8 billion rubles compared to 2.1 billion rubles for the first six months of 2014.