Enel Rossiya : Russia posted positive financial results in 1Q 2019 with net income up 29.3%

Moscow, April 25th, 2019 - PJSC Enel Russia has published its unaudited financial statements for the first quarter of 2019 in accordance with the International Financial Reporting Standards (IFRS).

Revenues increased, largely as a result of:

• Higher power sales mainly due to strong market pricing in the Center and Urals regions and lower hydro production;
• Higher capacity sales due to annual increase in tariffs, as well as higher free capacity (KOM) prices resulting from its indexation for 2019.

These factors more than offset lower output by all gas units, except Konakovskaya, that was mostly driven by lower loading by the System Operator resulting from decreased electricity consumption in the first price zone (European Russia and Urals regions) and overcapacity in the system.

EBITDA growth reflected the revenues increase with an additional positive effect coming from a 14.2% fixed cost decline that was mainly attributable to:

• Elimination of property tax on movable assets from 2019, lower operation and maintenance (O&M) costs due to changes in the O&M schedule as well as lower personnel expenses due to lower pension costs and headcount more than offsetting the impact on salaries of the Consumer Price Index (CPI) increase.

EBIT increased in line with EBITDA, more than offsetting higher accruals for bad debt.

Net income was in line with EBIT, further boosted by around 50% decrease in net financial charges, which was mainly due to the optimisation of debt currency and cost structure carried out over 2018 and 2019.

Net debt as of March 31st, 2019 lowered against the value posted as of December 31st, 2018 as solid operating cash flow compensated the payments made over the period.

OPERATIONAL HIGHLIGHTS