Inter RAO boosts Q1 adjusted IFRS earnings 24%, EBITDA - 26.5%
MOSCOW. May 20 (Interfax) - Inter RAO UES boosted adjusted net profit to international financial reporting standards (IFRS) 24% year-on-year in Q1 2014 to 7.2 billion rubles, the electricity holding said in a statement.
Unadjusted net profit was 3.8 billion rubles, compared with losses of 1.4 billion rubles a year previously. EBITDA grew 26.5% to 17.2 billion rubles.
Sales revenue rose 8.8% to 189.6 billion rubles, while operating expenses advanced 5.2% to 181.6 billion rubles. Capital expenditures declined 23.3% to 6.9 billion rubles.
The company's net debt at the end of the first quarter was 16.5 billion rubles, down 9.3% from end-2013.
Net profit was influenced by the launch of new energy units as part of power delivery contracts.
"Adjusted net income excludes provisions and depreciation (1.7 billion rubles in the first quarter of 2014 compared to 2.9 billion rubles in the first quarter of 2013), and revaluation of put and call options under the agreement with Vnesheconombank (1.7 billion rubles in the first quarter of 2014 compared to 4.3 billion rubles in the first quarter of 2013)," Inter RAO said.
"The largest share of EBITDA is attributable to Generation - The Russian Federation segment, which contributed 13.3 billion rubles. This segment grew by 22.7% (2.5 billion rubles) due to addition of new CDA capacities with marginal fuel cost increases due to selection of coal and gas suppliers with the most favorable pricing policies," the company said.
"EBITDA of Supply segment increased by 2.1 billion rubles (156.9%), reflecting increased retail premiums of guaranteeing suppliers of Inter RAO Group. Increased customer base due to connection of consumers in Tomsk, Omsk and Orel regions was another EBITDA growth driver. EBITDA of trading segment reduced by 0.2 billion rubles (25.3%) due to unfavorable pricing in domestic and foreign markets, and technical limitations on power supply imposed by system operators of Baltic States," the statement says.
"Revenue from generation segment increased by 2.9 billion rubles (5.9%) to 51.9 billion rubles reflecting larger proceeds from capacity sales due to addition of new CDA power generation capacity. Consolidated Group revenue from all Capacity Delivery Agreements in the first quarter of 2014 was 5.6 billion rubles. Other factors include capacity price increases in the Competitive Capacity Allocation (CCA) segment and indexation of heat prices on July 1, 2013," Inter RAO reported.
"Revenue from trading segment reduced by 3.1 billion rubles (-23.7%) to 10.0 billion rubles due to slower sales to Finland and Baltic States reflecting the combination of unfavorable pricing environment in Scandinavian and Baltic energy markets and growing electricity prices in the Russian domestic market," the statement says.
Inter RAO is a diversified energy holding serving various segments of the Russian and international electric power industry. Inter RAO owns and operates over 34.3 GW of installed capacity. The company is Russia's only import-export operator on the electricity market.
