JSC Mosenergo: IFRS for the 1Q2017

May 18, 2017

Moscow

RELEASE Mosenergo 1Q 2017 IFRS Profit Grew by 38.5%

Mosenergo releases unaudited interim consolidated financial statements (prepared in accordance with IFRS) for the 3 months ended March 31, 2017.

Consolidated Statement of Comprehensive Income Key Figures, (mn RUR)	3m 2016	3m 2017
Revenue	62,596	66,056
Variable Costs	(43,063)	(42,568)
Fixed Costs (1)	(5,932)	(5,973)
EBITDA (2)	13,319	16,822
Depreciation of Property, Plant and Equipment	(3,700)	(3,532)
Operating Profit	9,619	13,290
Profit for the Period	8,206	11,362

(1) Excluding depreciation of PP&E

(2) EBITDA = operating profit + depreciation of PP&E

Company revenue grew by 5.5% year-on-year up to RUR 66,056 mn.

The bulk of the total revenue (51.3%) was contributed by revenue from electricity and capacity sales, which grew by 15.6% up to RUR 33,873 mn. The reasons for the growth of revenue from electricity and capacity sales were the following: growing electricity production (+7.7%) and increased price for capacity under Capacity Supply Agreements (CSA). Growing production in 1Q 2017 resulted from decreased repair rate of highly efficient Mosenergo equipment as compared to 1Q 2016; commissioning of CCGT-unit at CHP-20 in 2016; lower net power flow, on the back of decreased electricity production at HPPs of Volga-Kama cascade and major state district power plants in the Integrated Energy System of Center. The mentioned above CSA- capacity price increase resulted from considering in the new CSA-capacity price calculation process a factor, assuring established payback period of generating units, as well as corrections, since January 1, 2017 for selected units, in CSA-ratio, which determines share of costs compensation at the capacity market.

Revenue from heat sales (47.7% of the total revenue) amounted to RUR 31,495 mn, down by 3.8% year-on-year, on the account of lower heat output (-2%). Other revenue totaled RUR 688 mn.

Variable costs for 3m 2017 decreased by 1.1% year-on-year, down to RUR 42,568 mn.

Fixed costs (excluding depreciation of PP&E) in the reporting period increased marginally by 0.7%, up to RUR 5,973 mn.

EBITDA for 3m 2017 amounted to RUR 16,822 mn (+26.3% year-on-year). Mosenergo IFRS profit for 3m 2017 increased by 38.5%, up to RUR 11,362 mn.

MOSENERGO PR DEPARTMENT

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