Moscow, March 18th, 2019 - PJSC Enel Russia has published its audited consolidated financial statements for 2018 in accordance with the International Financial Reporting Standards (IFRS).

Revenues slightly declined, largely as a result of:

  • lower output by conventional gas units that was mostly driven by lower loading by the System Operator resulting from overcapacity in the system, as well as by a marginal reduction in electricity consumption in the Ural region;
  • a decline in revenues from the capacity market due to lower government bond yields in 2018 that was one of the components for the calculation of the DPM tariff.

Higher regulated sales with an increase in annual tariffs, as well as higher free capacity (KOM) prices resulting from its indexation for 2018, only partially offset the aforementioned drop in revenues.

EBITDA also declined slightly, reflecting revenues, with lower fixed costs partially offsetting the above decrease.

Specifically, fixed costs dropped by 6% largely on lower personnel costs resulting from the amendment to the company's pension plan, in line with the recent evolution in legislation on the matter, lower use of materials following the higher level of planned maintenance that took place in 2017, as well as overhead optimisation initiatives. Recurring fixed costs, e.g. net of one-offs, increased on a like-for-like basis by marginal 0.4% over 2018 or well below CPI that is fully in line with the company's strategic guideline.

EBIT decreased reflecting EBITDA, as well as higher accruals for bad debt.

Net income reflected EBIT dynamics, partially offset by lower net financial charges, which were mainly due to the optimisation of debt currency and cost structure, including the refinancing of 10 billion rubles of commercial papers in 2018.

Net debt as of December 31st, 2018 increased against the value posted as of December 31st, 2017, as a result of investments into the development of wind projects that were awarded to the company in a 2017 public tender.

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PJSC Enel Russia published this content on 18 March 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 18 March 2019 13:59:09 UTC