Lenenergo swings to RAS net profit of 3 bln rubles in H1
ST. PETERSBURG. Aug 2 (Interfax) - Lenenergo swung to a net profit of 3.069 billion rubles in H1 2016 compared with a net loss of 5.09 billion rubles in the same period last year, the genco said in its RAS earnings report.
Revenue rose 39.8% to 27.9 billion rubles.
Revenue from the transmission of electricity rose 41.7% to 26.317 billion rubles, from grid connections rose 9.4% to 1.424 billion rubles.
The company said that the increase in revenue from providing services for power transmission is attributable to the introduction of tariff rates for St. Petersburg starting on December 1, 2015 in accordance with the requirement of the Russian Federal Antimonopoly Service (FAS), which allowed for reducing the grid company's decline in income
The growth of revenue from grid connection services was attributable to the increase in the amount of work in this area.
The statement also said that the posting of profit, besides revenue growth for regular types activity, was substantially impacted by the increase in the surplus for other income and spending (by 5.942 billion rubles).
Net debt for the year, from July 1, 2015 until July 1, 2016, fell by 22.3% to 9.516 billion rubles. The decline of net debt happened due to the reduction of obligations on credits and borrowings with funds received from the sale of OFZs in the amount of 17.025 billion rubles, which were taken on by Russian Grids in the charter capital of Lenergo for the payment of an additional share issue.
The remainder of funds from the sale of OFZ amount to 14.975 billion rubles and had a substantial impact of the reduction of net debt. "The target purpose of these funds is the financing of investment spending for meeting accumulated obligations for grid connections of applicants," the statement said.
Earnings before interest, taxes, depreciation and amortization (EBITDA) rose by more than 6-fold to 10.251 billion rubles.
OJSC Lenenergo's financial highlights ('000 rubles):
| H1 2016 | H1 2015 | |
| Revenue | 27 899 596 | 19 956 894 |
| Cost of sales | 24 008 553 | 20 127 334 |
| Gross profit (losses) | 3 891 043 | (170 440) |
| Pretax profit (losses) | 4 333 089 | (5 670 624) |
| Net profit (losses) | 3 068 892 | (5 090 298) |
The company's accounts receivable fell from 7.399 billion rubles as at December 31, 2015 to 5.283 billion rubles as at June 30, 2016. Accounts payable fell from 32.513 billion rubles to 30.097 billion rubles, respectively.