Results of Financial and Economic Activities

According to the year-end results, the Company managed to maintain an upward trend in net profit growth. The financial result for 2022 was RUB 5.24 billion, an increase of RUB 3.53 billion from 2021, due to the growth in services rendered and cost optimisation.

The Company’s management took exhaustive measures to contain cost and debt portfolio growth, optimise interest expenses, improve the efficiency of the procurement management system, reduce the unit cost of energy equipment operation, reduce grid losses and improve energy efficiency.

KIRILL IORDANIDI
Kirill Iordanidi Deputy General Director for Economics and Finance
Revenue from sales of services (total) was
63,738.9 RUB mn
which is RUB 6,069.2 million more than for the same period in 2021 (RUB 57,669.7 million)

Including:

  • Revenue for electricity transmission services amounted to RUB 61,452.9 million, which is RUB 6,926.6 million more than in 2021 (RUB 54,526.3 million) due to the effect of approved tariffs for electricity transmission services for 2022, as well as an increase of 943 million kWh (4%) in the volume of electricity transmission services rendered
  • Revenue from grid connections totalled RUB 1,282.1 million, or RUB 1,065.6 million less than the actual figures for 2021 (RUB 2,347.7 million), due to the execution of grid connection contracts in 2021 with major applicants, including Stage 1 under the agreement with Caspian Pipeline Consortium – Russia, JSC (revenue of RUB 729 million) and the agreement with Novoroslesexport, JSC (revenue of RUB 361 million)
  • Revenue from other activities amounted to RUB 1,003.9 million, which is RUB 208.1 million more than the actual parameters for 2021 (RUB 795.8 million).
The self-cost (including administrative costs) for 2022 was
53,153.7 RUB mn
which is RUB 3,099.2 million higher than the actual 2021 figure (RUB 50,054.5 million)

The increase is due to higher expenses for services of distribution grid companies, purchased electricity for loss compensation, electricity transmission services of FGC UES, PJSC (as a UNPG management organisation), higher expenses for maintenance and repair materials and higher personnel costs.

The main factors that influenced the financial result:

Increase in revenue by RUB 6,069.2 million

Increase in the self-cost including administrative expenses by RUB 3,099.2 million (7%) compared to 2021 parameters

Improvement in the balance of other income and expenses from profits by RUB 1,511.8 million compared to the 2021 parameters

Increase in income tax by RUB 949.0 million compared to the 2021 parameters

The main financial and economic indicators of the Company for 2020–2022
Sl. No. Indicator 2020 2021 2022 Δ 2022/2021 (%)
Indicators from the Company’s RAS accounting (financial) statements The following data were used to calculate the indicators:
— for 2020 — Profit and Loss Statement for January — December 2021 («in 2020» column)
— for 2021 — Profit and Loss Statement for January — December 2022 («in 2021» column)
— for 2022 — Profit and Loss Statement for January — December 2022 («in 2022» column). (RUB mn)
1 Revenue from sales of products (services), including: 49,370 57,670 63,739 11
1.1
from electricity transmission
48,102 54,526 61,453 13
1.2
from grid connection
731 2,348 1,282 –45
1.3
from electricity sales
0 0 0 0
1.4
from other activities
536 796 1,004 26
2 Cost of products (services) –46,800 –49,903 –52,991 6
3 Gross profit 2,569 7,767 10,748 38
4 Administrative expenses –175 –152 –163 7
5 Selling and marketing expenses 0 0 0 0
6 Profit (loss) from sales 2,394 7,615 10,585 39
7 Interest receivable 29 28 109 289
8 Interest payable –1,593 –1,553 –2,663 71
9 Income from shareholdings 0.7 20 0 –100
10 Other revenues, total 1,563 1,414 3,558 152
11 Other expenses, total –3,778 –4,826 –4,409 –9
12 Profit (loss) before tax –1,384 2,699 7,180 166
13 Income tax and other charges –117 –987 –1,936 96
14 Financial result –1,501 1,712 5,244 206
15 EBITDA EBITDA indicator was calculated as follows: EBITDA = Profits before tax — Interest payable + Depreciation. 4,756 8,879 16,141 82
Indicators calculated on the basis of the Company’s IFRS consolidated financial statements
16 Net debt/EBITDA (units) 4.25 2.25 1.28 –0.97
17 Current liquidity ratio (units) 0.61 0.55 0.57 0.02
18 Financial leverage (units) 1.31 1.17 1.16 –0.01
19 Share of non-current borrowings (%) 77.13 76.19 77.57 1.38
20 Net cash flow (RUB mn) 320 4,131.0 4,112.0 –19