Among the main trends of financial and business activity of JSC Lenenergo in 2013 were:
At preparation of the present section of the annual report balance sheets of the Company as of 31.12.2011, 31.12.2012 and 31.12.2013 (as a part of the audited annual accounting reporting of JSC Lenenergo for 2013 taking into account a retrospective) were used.
Grand total (i.e. sum of assets at the Company’s disposal) at the end of 2013 made RUB 148,483 mln. In comparison with the balance sheet as of 31.12.2012 total property of the Company and sources of its formation increased by RUB 16,935 mln (12.9%).
As JSC Lenenergo operates in the capital-intensive industry, the structure of liabilities under the Company’s balance sheet is characterized by a large volume of debt funds, and in structure of assets non-current assets prevail.
The balance sheet of the Company as of 31.12.2013 is characterized by the following features:
Indicator | Line (Decree # 66-N) |
As of 31.12.12, actual result* | Share in grand total, % | As of 31.12.13, actual result | Share in grand total, % | Changes, 2013/2012 | |||
---|---|---|---|---|---|---|---|---|---|
% | On specificweight in grand total, % | ||||||||
Assets | |||||||||
I. NON-CURRENT ASSETS | |||||||||
Intangible assets | 1110 | 146 | 0.1 | 105 | 0.1 | −41 | −28.0 | 0.0 | |
R&D results | 1120 | 67 | 0.1 | 83 | 0.1 | 16 | 23.6 | 0.0 | |
Fixed assets | 1150 | 115,075 | 87.5 | 124,823 | 84.1 | 9748 | 8.5 | −3.4 | |
including construction in progress | 11,322 | 8.6 | 11,753 | 7.9 | 432 | 3.8 | −0.7 | ||
including advance payments on capital construction and acquisition of fixed assets | 745 | 0.6 | 458 | 0.3 | −287 | −38.6 | −0.3 | ||
Financial investments | 1170 | 947 | 0.7 | 898 | 0.6 | −49 | −5.2 | −0.1 | |
Deferred tax assets | 1180 | 510 | 0.4 | 980 | 0.7 | 469 | 92.0 | 0.3 | |
Other non-current assets | 1190 | 777 | 0.6 | 707 | 0.5 | −70 | −9.0 | −0.1 | |
Total for Section I | 1100 | 117,523 | 89.3 | 127,596 | 85.9 | 10,073 | 8.6 | −3.4 | |
II. CURRENT ASSETS | |||||||||
Supplies | 1210 | 443 | 0.3 | 584 | 0.4 | 141 | 31.9 | 0.1 | |
Value added tax under purchased valuables | 1220 | 223 | 0.2 % | 495 | 0.3 % | 272 | 122.2 | 0.2 | |
Accounts receivable, including: | 1230 | 7,797 | 5.9 | 10,071 | 6.8 | 2,274 | 29.2 | 0.9 | |
Long-term accounts receivable | 1231 | 201 | 0.2 | 112 | 0.1 | −90 | −44.5 | −0.1 | |
Short-term accounts receivable | 1232 | 7,596 | 5.8 | 9,960 | 6.7 | 2,364 | 31.1 | 0.9 | |
Financial investments (excluding cash equivalents) | 1240 | 2,266 | 1.7 | 6,284 | 4.2 | 4,018 | 177.3 | 2.5 | |
Cash and cash equivalents | 1250 | 3,163 | 2.4 | 3,370 | 2.3 | 208 | 6.6 | −0.1 | |
Other current assets | 1260 | 134 | 0,1 | 82 | 0,1 | −52 | −38,6 | 0,0 | |
Total for Section II | 1200 | 14,025 | 10.7 | 20,887 | 14.1 | 6,862 | 48.9 | 3.4 | |
Balance sheet total | 1600 | 131,548 | 100.0 | 148,483 | 100.0 | 16,935 | 12.9 | 0.0 | |
LIABILITIES | |||||||||
III. CAPITAL AND RESERVES | |||||||||
Authorized capital | 1310 | 1,228 | 0.9 | 1,228 | 0.8 | 0 | 0.0 | −0.1 | |
Revaluation of non-current assets | 1340 | 51,520 | 39.2 | 51,433 | 34.6 | −87 | −0.2 | −4.5 | |
Additional capital | 1350 | 11,417 | 8.7 | 11,417 | 7.7 | 0 | 0.0 | −1.0 | |
Reserve capital | 1360 | 153 | 0.1 | 184 | 0.1 | 31 | 20.5 | 0.0 | |
Retained profit (uncovered loss) | 1370 | 11,907 | 9.1 | 12,078 | 8.1 | 172 | 1.4 | −0.9 | |
Total for Section III | 1300 | 76,225 | 57.9 % | 76,341 | 51.4 % | 116 | 0.2 % | −6.5 % | |
IV. LONG-TERM LIABILITIES | |||||||||
Loans and credits | 1410 | 24,645 | 18,7 | 29,406 | 19,8 | 4,761 | 19,3 | 1,1 | |
Deferred tax liabilities | 1420 | 1,989 | 1.5 | 2,569 | 1.7 | 579 | 29.1 | 0.2 | |
Other liabilities | 1450 | 1,586 | 1.2 | 572 | 0.4 | −1,013 | −63.9 | −0.8 | |
Total for Section IV | 1400 | 28,220 | 21.5 | 32,547 | 21.9 | 4,327 | 15.3 | 0.5 | |
IV. SHORT-TERM LIABILITIES | |||||||||
Loans and credits | 1510 | 3,144 | 2.4 | 3,970 | 2.7 | 826 | 26.3 | 0.3 | |
Accounts payable | 1520 | 22,898 | 17.4 | 34,615 | 23.3 | 11,717 | 51.2 | 5.9 | |
Deferred income | 1530 | 0 | 0.0 | 0 | 0.0 | 0 | — | 0.0 % | |
Estimated liabilities | 1540 | 1,061 | 0.8 % | 1,010 | 0.7 | −51 | −4.8 | −0.1 | |
Total for Section V | 1500 | 27,103 | 20.6 % | 39,595 | 26.7 | 12,492 | 46.1 | 6.1 | |
Balance sheet total | 1700 | 131,548 | 100.0 % | 148,483 | 100.0 | 16,935 | 12.9 | 0.0 |
Non-current assets of the Company as of 31.12.2013 totaled RUB 127,596 mln, or 85.9% of grand total. 84.1% of cumulative assets and 97.8% of non-current assets of the Company were assignable to fixed assets (including construction in progress and advance payments on capital construction and acquisition of fixed assets) of RUB 124,823 mln.
The increase of non-current assets was caused by extension of the Company’s investment program, input and reconstruction of fixed assets during its performance.
In the structure of long-term financial investments of the Company (RUB 898 mln, 0.7% of non-current assets) the cost of stakes in CJSC Lenenergospetsremont, CJSC Kurortenergo, CJSC Tsarskoselskaya Energy Company and a number of other issuers was considered. Decrease in their size by RUB 49.3 mln, or 5.2%, was connected with creation of reserve under devaluation of shares of JSC Northwest Energy Management Company, CJSC Velma and CJSC Akvatron and sale of JSC Ruskobank shares.
Other non-current assets in the sum of RUB 707 mln making 0.5% of total assets were also recognized in the balance sheet as of 31.12.2013. In this balance sheet line a number of expenses relating to future reporting periods (under insurance contracts, non-exclusive rights to use databases, license agreements, expenses on connection to grids of third-party organizations, etc.) was reflected.
For the end of 2013 current assets of the Company totaled RUB 20,887 mln, or 14.1% of grand total, and having increased by RUB 6,862 mln (or 48.9%) in comparison with 2012.
The major specific weight in the structure of current assets by results of 2013 was assignable to accounts receivable – 48.2% of their total amount (RUB 10,071 mln). The most liquid assets – cash and short-term financial investments (presented by bank deposits) – made in total RUB 9,655 mln, or 46.2% of current assets.
Moreover, supplies, VAT under purchased valuables and other current assets –VAT on sums of advances given out on capital construction and purchase of fixed assets, were reflected in the structure of current assets.
A growth of current assets by results of 2013 was caused by increase in the sum of the most liquid assets by RUB 4,226 mln, in 1.8 times, including the sums of short-term financial investments – by RUB 4,018 mln (in 2.8 times), cash and cash equivalents – by RUB 208 mln, 6.6%. In particular, sources received as a result of additional issue of shares, cash of subscribers on technological connections for financing construction of facilities under the investment program, other own sources were considered in the structure of the most liquid assets.
Introducing amendments to the Federal Laws # 94-FZ of 21.07.2005 “About placement of orders for delivering of goods, performing of works, rendering of services for state and municipal needs” and # 135-FZ of 26.07.2006 “About protection of competition” since 2012 provides for placing financial sources without carrying out competitive procedures and promotes to the growth of the sum of short-term financial investments of the Company. Management of temporarily free funds of the Company is based on a principle of achievement of the maximum efficiency of financial investments at optimization of a risk – profitability ratio.
Concerning 2012 the size of value added tax under purchased valuables and supplies also increased by RUB 272 mln and RUB 141 mln, respectively. The size of other current assets thus decreased.
Cumulative value of accounts receivable for the end of fiscal year was RUB 10,071 mln that is RUB 2,274 mln (29.2%) higher than under the balance sheet as of 31.12.2012.
The sum of advances paid under capital construction which decreased for the analyzed period by RUB 287 mln (w/o VAT) did not enter into Section II “Current assets” under the line “Accounts Receivable” as of 31.12.2012 and 31.12.2013, and constituted RUB 745 mln as of 01.01.2013 and RUB 458 mln for the year end, respectively.
Advances paid as of 31.12.2013 totaled RUB 573 mln, or 5.7% of cumulative accounts receivable.
Thus advances paid under contracts of leasing (RUB 33 mln, or 5.8% of total amount of advances) were recognized as a part of long-term accounts receivable. Advances paid to service providers for the sum of RUB 4 mln and to other debtors for the sum of RUB 536 mln (0.7% and 93.5% of total amount of advances paid) were recognized as a part of short-term advances in the volume of RUB 540 mln.
Accounts payable of suppliers and contractors totaled RUB 5,898 mln, or 58.6% of cumulative accounts receivable: a growth in comparison with 31.12.2012 was RUB 3,103 mln. This debt includes: debt on the contracts signed on rendering of services on electric power transmission over JSC Lenenergo grids (increase by RUB 1,752 mln); debt of buyers and customers on technological connections services (increase by RUB 988 mln), under identified non-contractual electricity consumption (increase by RUB 378 mln) and debt of other buyers and customers (cumulative decrease of RUB 15 mln).
About 58.6% of cumulative accounts receivable were assignable to other receivables in the sum of RUB 3,600 mln as of 31.12.2013. It includes: VAT on advances received (RUB 2,454 mln), the sum of overpayments on taxes and fees (RUB 379 mln), debtors on claims (RUB 289 mln), short-term debt on leasing at a rate of RUB 85 mln and other debt.
Own sources had the greatest specific weight among sources of assets formation of the Company – 51.4% of the balance sheet total, or RUB 76,341 mln. The main share among them is occupied by the sum of revaluation of non-current assets (67.4% of own sources). The additional capital represents 15.0%, the share of authorized capital is 1.6%, on retained profit (of past years and fiscal year) – 15.8% of the Section III “Capital and Reserves”. Concerning 2012 the sum of capital and reserves increased (by RUB 116 mln, or 0.2%) due to the growth of consolidated financial result.
Authorized capital for 2013 did not change. Growth of the authorized and additional capitals by results of the additional issue of ordinary shares carried out by JSC Lenenergo is expected in 2014 after registration of the report on results of additional issue.
By results of net profit distribution for 2012 the reserve capital in the reporting year was increased by RUB 31 mln. The reserve capital of JSC Lenenergo as of 31.12.2013 amounted to RUB 184 mln, or 15% of its authorized capital that corresponds to requirements of the Company’s Charter. Sources of the created reserve fund were not used in reporting year.
Liabilities of JSC Lenenergo (Sections 4 and 5 of the balance sheet net of deferred tax liabilities, income of future periods and estimated liabilities) as of 31.12.2013 totaled RUB 68,564 mln, including:
The share of long-term liabilities (Section IV of the balance sheet) was 21.9% by results of 2013. Long-term liabilities were created by 90.3% at the expense of long-term credits and loans in total amount of RUB 29,406 mln.
The gain of long-term liabilities of the Company in comparison with previous fiscal year (by RUB 4,327 mln, or 15.3%) was caused by the growth of debt on long-term credits and loans (on RUB 4,761 mln, or 19.3%).
Short-term liabilities (including income of future periods and estimated liabilities) were the second important source of formation of the Company’s assets– 26.7% of the balance sheet total.
The greatest specific weight among short-term liabilities was assignable to accounts payable – 87.4% of short-term liabilities and 23.3% of all funding sources. In comparison with 31.12.2012 the sum of short-term accounts payable increased by RUB 11,717 mln, or 51.2%.
As a part of short-term liabilities as of 31.12.2013 (2.7% of all sources of assets formation) there were recognized:
The gain of short-term liabilities relatively 31.12.2012 was RUB 826 mln (26.3%) and was caused by the growth of debt on credits and loans considered in the structure of short-term liabilities as of 31.12.2013.
Overall, the amount of debt (indebtedness on long-term and short-term credits and loans, including debt on interest) concerning 2012 increased by RUB 5,587 mln (20.1%). The Company carried out both attraction and repayment of credits and loans in the reporting year (see section “Credit Policy”).
The cumulative accounts payable (long-term and short-term) as of 31.12.2013 totaled RUB 35,187 mln, having increased by RUB 10,704 mln (43.7%) in comparison with 2012.
Thus on 31.12.2013 concerning the beginning of reporting period the sum of short-term payables increased by RUB 11,717 mln, or 51.2%, and the sum of long-term payables decreased by RUB 1,013 mln, or 63.9%.
Decrease in long-term accounts payable concerning the level of the year beginning occurred at the expense of decrease in long-term accounts payable on advances received on the contracts of technological connection to electric networks. As of 31.12.2013 long-term liabilities on advances on technological connections made RUB 380 mln compared to RUB 1,335 mln as of 31.12.2012, respectively.
For the end of 2013 short-term accounts payable of the Company reached RUB 34,615 mln. The growth of short-term accounts payable by RUB 11,717 mln concerning the level of 2012 is generally associated with influence of the following factors:
In general, within the analysis of the receivables and payables ratio, including in dynamics, specifics of financial and business activity of JSC Lenenergo associated with implementation of the investment program and payment of fees on technological connection should be considered.
The ratio of receivables and payables reflects the extent of crediting of buyers by the Company on the one hand and the level of the Company’s crediting by sellers on the other hand, and it is considered normal at a level of 1.2–1.5. Within the conditions of a smaller growth rate of the sum of receivables concerning a growth rate of the Company’s payables the indicator reflecting their ratio dropped by results of 2013.
Indicators | 2011 | 2012 | 2013 | Change, 2013/2012, % |
---|---|---|---|---|
Revenue (net) | 36,958 | 36,273 | 39,902 | 10.0 |
Costs of production and sales | −31,758 | −32,830 | −36,429 | 11.0 |
Profit (loss) on salesThe sum of profit (loss) on sales coincides with the size of gross profit (loss) in the absence of commercial and management expenses | 5,201 | 3,443 | 3,473 | 0.9 |
Income of participation in other organizations | 0.4 | 0.8 | 0.7 | −16.1 |
Interest receivable | 57 | 296 | 644 | 117.4 |
Interest payable | −1,167 | −1,788 | −2,217 | 24.0 |
Other income | 750 | 1,924 | 3,529 | 83.4 |
Other expenses | −2,530 | −1,914 | −3,985 | 108.2 |
Profit (loss) before taxes | 2,311 | 1,962 | 1,444 | −26.4 |
Current profit tax | −782 | −447 | −1,000 | 123.5 |
Change of deferred tax liabilities | −443 | −496 | −579 | 16.7 |
Change of deferred tax assets | 288 | −25 | 470 | −1,949.9 |
Other | −7 | 49 | 90 | 83.2 |
Total profit tax and other payments | −944 | −920 | −1,019 | 10.8 |
Net profit (loss) of the reporting period | 1,367 | 1,042 | 425 | −59.2 |
Revenue | 2011 | Share in revenue, % | 2012 | Share in revenue, % | 2013 | Share in revenue, % | Change, 2013/2012, % |
---|---|---|---|---|---|---|---|
Total revenue, including: | 36,958 | 100.0 | 36,273 | 100.0 | 39,902 | 100.0 | 10.0 |
from electric power transmission | 28,475 | 77.0 | 28,816 | 79.4 | 33,207 | 83.2 | 15.2 |
from technological connection services | 8,311 | 22.5 | 7,282 | 20.1 | 6,515 | 16,3 | −10.5 |
from other services | 172 | 0.5 | 175 | 0.5 | 180 | 0.5 | 2.7 |
JSC Lenenergo revenue for 2013 totaled RUB 39,902 mln (growth of 10.0% to the level of 2012).
Revenue from basic types of activity – electric power transmission and services in technological connection – made 99.5% of consolidated revenues of the Company for the reporting year.
Revenue growth on electric power transmission by results of 2013 concerning the fact of the similar period of 2012 was caused by growth of the average tariff by 16.8% at decrease in the volumes of electric power transmission by 394 mln kWh (1.3%).
Drop in revenue from rendering technological connection services by results of 2013 in comparison with the fact of 2012 was caused by postponement of the maturity date under a large contract for 2014 due to default on submission of working documentation by the applicant.
Revenue | PlanPlanned indicators are given according to the approved business plan of the Company for 2013–2017 (approved by the Board of Directors on 26.04.2013 (Minutes # 29 of 30.04.2013) | Fact | Fact/Plan, % |
---|---|---|---|
Total revenue, including: | 42,669 | 39,902 | −6.5 |
from electric power transmission | 34,271 | 33,207 | −3.1 |
from technological connection services | 8.239 | 6.515 | −20.9 |
from other services | 159 | 180 | 13.1 |
The actual revenue of the Company turned out to be lower than the forecasted indicator by RUB 2,767 mln. A drop in revenue from electric power transmission by RUB 1,064 mln, or 3%, was caused by decrease in the volume of consumption by 617 mln kWh, or for 2%, and a slight reduction of the average tariff by 0.8%. Decrease in the actual revenue from technological connection services relative to the planned indicator was caused by postponement of the maturity date under a large contract for 2014.
2011 | Share in total amount, % | 2012 | Share in total amount, % | 2013 | Share in total amount, % | |
---|---|---|---|---|---|---|
Prime cost, including: | 31,758 | 100.0 | 32,830 | 100.0 | 36,429 | 100.0 |
rendering of services in electric power transmission | 30,456 | 95.9 | 32,344 | 98.5 | 35,903 | 98.6 |
rendering of services in technological connection | 1,226 | 3.9 | 400 | 1.2 | 437 | 1.2 |
other services | 75 | 0,2 | 86 | 0,3 | 89 | 0,2 |
2011 | Share in total amount, % | 2012 | Share in total amount, % | 2013 | Share in total amount, % | |
---|---|---|---|---|---|---|
Material costs | 5,852 | 18.4 | 5,292 | 16.1 | 5,990 | 16.4 |
Works and services of production character | 14,662 | 46.2 | 15,366 | 46.8 | 15,961 | 43.8 |
Payroll and social charges | 3,424 | 10.8 | 3,525 | 10.7 | 3,981 | 10.9 |
Depreciation | 5,102 | 16.1 | 6,278 | 19.1 | 8,261 | 22.7 |
Miscellaneous expenses | 2,717 | 8.6 | 2,368 | 7.2 | 2,236 | 6.1 |
Total expenses | 31,758 | 100.0 | 32,830 | 100.0 | 36,429 | 100.0 |
Prime cost of sold goods, products, works, and services of JSC Lenenergo in 2013 was RUB 36,429 mln (growth by RUB 3,599 mln, 11.0% to the level of 2012).
By results of 2013 the most essential changes in the structure of costs of production and sales of goods (services) occurred concerning a growth in the share of depreciation (by 3.6 items) at a simultaneous decrease in the specific weight of works and services of production character (by 3.0 items).
In absolute expression the most considerable gain (31.6%, or RUB 1,983 mln) was noted on the size of depreciation that is connected with increase in the book value by results of implementation of the investment program on input of fixed assets and revaluation of fixed assets carried out for the end of 2012.
There was also an increase on the following items:
The growth rate of controllable costs for the reporting period in comparison with 2012 exceeded the growth rate of non-controllable costs while in absolute expression controllable costs increased by RUB 935 mln, and non-controllable costs – by RUB 2,664 mln, respectively.
Indicator | 2011 | 2012 | 2013 | Change, 2013/2012, % |
---|---|---|---|---|
Controllable costs | 5,488 | 5,857 | 6,792 | 16.0 |
Material costs | 413 | 469 | 503 | 7.2 |
Works and services of production character | 1,014 | 1,218 | 1,464 | 20.2 |
Labor compensation fund | 2,693 | 2,790 | 3,154 | 13.1 |
Other costs | 1,369 | 1,380 | 1,672 | 21.1 |
Non-controllable costs | 26,270 | 26,973 | 29,637 | 9.9 |
Purchased energy on compensation of losses | 5,357 | 4,754 | 5,415 | 13.9 |
Services in electric power transmission by networks of third-party grid organizations | 7,969 | 8,029 | 7,774 | −3.2 |
JSC FGC UES fees | 5,686 | 6,119 | 6,715 | 9.7 |
Depreciation of fixed assets and intangible assets | 5,102 | 6,278 | 8,261 | 31.6 |
Leasing payments | 1,187 | 803 | 123 | −84.6 |
Other costs | 969 | 990 | 1,349 | 36.3 |
Total costs | 31,758 | 32,830 | 36,429 | 11.0 |
In comparison with the previous reporting year specific weight of controllable and non-controllable costs in the prime cost structure practically did not change. By results of 2013 controllable costs represented 18.6% and non-controllable costs – 81.4% of total costs of the Company for production and sales of goods (work, services).
Both in the previous year and by results of the reporting year the share of labor compensation fund (46.4%) prevailed in structure of controllable costs. The share of labor compensation fund in comparison with 2012 decreased (by 1.2%), the gain of a share of works and services of production character made 0.8%. The share of material costs in 2013 decreased by 0.6%. Miscellaneous costs increased by 1%.
Overall growth of controllable costs by 16%, or RUB 935 mln in 2013 is caused by increase in works and services of production character, growth of labor compensation fund and miscellaneous costs.
The main specific weight in the structure of non-controllable costs is the share of depreciation (27.9%), and services in electric power transmission by networks of third-party grid organizations, JSC FGC UES and purchased energy on compensation of losses. The most essential changes in the structure of non-controllable costs in comparison with 2012 occurred regarding a growth of specific weight of depreciation by 4.6 p.p. at a simultaneous decrease in the share of costs of services in electric power transmission by networks of third-party grid organizations by 3.5 p.p. and leasing payments by 2.6 p.p.
The program of cost management was developed and executed in JSC Lenenergo in 2013.
The effect from implementation of activities directed on optimization of operational costs and generation of additional income constituted RUB 952.1 mln in 2013.
The effect form implementation of activities directed on optimization of costs in the field of technical re-equipment, retrofitting and new construction totaled RUB 474.5 mln in 2013.
Implementation of the cost management program and actions held by the Company on definition of the limits of operational budgets provided execution of the Resolution of the Government on decrease in reduced operating costs in 2013 by 10% to the level of 2010.
Within the strategy of development of the power network complex of Russian Federation the Company is obliged to ensure achievement of the target indicator of decrease in operating expenses not less than 15% by 2017 taking into account inflation concerning the level of 2012 counting per unit of service of electro-technical equipment. The Company’s business plan for 2014–2018 was developed under the condition of ensuring advancing rate of achievement of the target indicators.
The program includes a complex of organizational and technical actions directed on optimization of business operations of the Company, such as:
Indicator | 2014, plan | 2015, plan | 2016, plan | 2017, plan | 2018, plan |
---|---|---|---|---|---|
Reduced fix costs (in the prices of 2012), RUB thousand | 5,870,308 | 6,116,677 | 5,894,969 | 5,891,476 | 5,891,926 |
Quantity, c.u. | 526,801 | 546,573 | 565,733 | 584,891 | 605,191 |
Reduced fixed costs per c.u., RUB thousand | 11.14 | 11.19 | 10.42 | 10.07 | 9.74 |
Decrease in costs per c.u. In comparison with 2012, % | −9.4 | −9.0 | −15.3 | −18.1 | −20.8 |
Target indicator, % | −5.0 | −8.3 | −11.7 | −15.0 | −18.0 |
Indicator | 2011 | 2012 | 2013 |
---|---|---|---|
Decrease (–) / growth (+) of operating costs reduced to the level of 2010, RUB mln | +176.5 | −347.3 | −449.9 |
Decrease in operating costs reduced to the level of 2010, % | +4.2 | −8.3 | −10.8 |
By results of 2013 sales profit reached RUB 3,473 mln. Its gain in comparison with the previous reporting year was caused by a higher increase in revenue of the Company compared to its prime cost growth. The sum of expenses per 1 rub of sold goods for 2013 compared to the previous reporting year practically did not change and constituted 91 kopeks.
Interest payments of JSC Lenenergo in 2013 increased by RUB 429 mln compared to 2012 and totaled RUB 2,217 mln in the reporting year. Interest payments for 2013 were calculated on credits and the loans attracted by the Company in 2010–2013. Growth of interest payments was caused by increase in the sum of a principal debt on which interest accrual was made in the reporting period.
The sum of interest payments in favor of JSC Lenenergo reached RUB 644 mln that was above the level of previous reporting period by RUB 348 of mln (in 2.2 times). The specified income is in dependence from the balance of cash placed on settlement accounts of the Company within a year and total cash placement on deposits.
Income of participation in other organizations was insignificant and made less than RUB 1 mln.
In general concerning 2012 there was a decrease in balance of other income and expenses (without interest receivable and payable and income of participation in other organizations) by RUB 466 mln in the conditions of a smaller gain of the sum of other income in comparison with increase in other expenses.
Thus, the main influence on decrease in balance of other income and expenses was rendered by a growth of expenses on creation of reserves on bad debts and other conditional obligations while increase in income of identified non-contractual electricity consumption made a smaller volume.
Growth of income on sales in 2013 compared to 2012 was followed by a significant increase in absolute expression, increase in negative balance of other income and expenses (including interest and income from participation in other organizations). As a result income before taxes by results of 2013 decreased by RUB 518 mln.
Income tax and other similar obligatory payments following the results of 2012 reached RUB 1,019 mln that was above the level of 2012 by RUB 99 mln.
EBITDA of the Company identifying cash flow generated by the Company before interest and taxes payments increased in 2011–2013.
By results of 2013 EBITDA totaled RUB 11,279 mln that was above the level of 2012 by RUB 1,546 mln (15.9%). The growth of indicator was primarily due to higher growth rate of revenue (+10.0%, RUB 3,629 mln) in comparison with prime cost growth net of depreciation (+6.0%, RUB 1,617 mln).
The balance of other income and expenses without interest payable and interest receivable decreased by RUB 466 mln (in 3.2 times), mainly at the expense of reserve formation on bad debts and reserve on other conditional obligations that was not compensated by growth of positive balance of income and expenses on identified non-contractual electricity consumption.
Period | Income on Sales | Balance of other income and expenses | Income before Taxes | Profit tax and other similar payments | Net Income |
---|---|---|---|---|---|
1 | 2 | 3 | 4 = 2 + 3 | 5 | 6 = 4 + 5 |
2011 | 5,201 | −2,890 | 2,311 | −944 | 1,367 |
2012 | 3,443 | −1,481 | 1,962 | −920 | 1,042 |
2013 | 3,473 | −2,028 | 1,444 | −1,019 | 425 |
Change, 2013/2012, % | 0.9 | 37.0 | −26.4 | 10.8 | −59.2 |
Indicators | Plan | Fact | Deviation fact/plan, % |
---|---|---|---|
Net income, including: | 801 | 425 | −46.9 |
from electric power transmission on networks | −7,116 | −6,446 | −9.4 |
from services on technological connection | 7,427 | 5,733 | −22.8 |
from other services | 490 | 1,138 | 132.4 |
Decrease in net income in relation to the forecast constituted RUB 376 mln, or 46.9%. Performance results of the company were affected by the following factors:
Decrease in revenue by RUB 2,767 mln at the expense of:
Decrease in prime cost by RUB 2,230 mln. The most significant decrease was due to:
Decrease in the negative balance of other income and expenses by RUB 3 mln. Growth of other expenses by RUB 3,237 mln was compensated by the growth of other income by RUB 3,240 mln.
The greatest increase in other income was due to:
The greatest increase in other expenses was due to:
Reduction in income tax by RUB 159 mln, or 14% due to the gross income drop.
THE LOSS FROM ACTIVITIES ON ELECTRIC POWER TRANSMISSION FOR 2013 TOTALED RUB 6,446 MLN THAT WAS LESS THAN THE FORECASTED LOSS BY RUB 670 MLN, OR 9%. DECREASE IN THE LOSS WAS AFFECTED BY THE FOLLOWING FACTORS:
Decrease in prime cost by RUB 2,341 mln. Decrease in prime cost was caused by a drop in the services of other distribution grid companies by RUB 1,290 mln, or 14% because of selection of the single-rate type of an individual tariff and existing disagreements regarding application in calculations of actual or declared capacity; decrease in depreciation charges by RUB 1,020 mln in connection with increase in the terms of useful life of fixed assets as well as setting of new terms of useful lives at significant improvement of characteristics of objects after their modernization.
Decrease in revenue in a smaller volume than the drop in prime cost. The revenue decreased by RUB 1,064 mln, or 3% that was caused by decrease in the volume of consumption by 617 mln kWh, or 2%, and insignificant reduction of the average tariff by 0.8%.
Growth of expenses from income by RUB 702 mln, or 29% by results of the following factors:
Reduction in income tax by RUB 94 mln in connection with decrease in fixed tax liabilities.
Net income from activities on technological connection totaled RUB 5,733 mln that is less than the forecasted net income by RUB 1,693 mln.
Reduction of net income was affected by a drop in revenue on technological connection by RUB 1,724 mln, or 21% that was caused by non-fulfilment of the large contract due to the applicant’s failure to provide working documentation. The income tax carried on activity on technological connection, decreased by RUB 100 mln due to decline of income before taxes.
Net income from other types of activity constituted RUB 1,138 mln that exceeded the forecasted indicator by RUB 648 mln. The growth of net income was influenced by increase in miscellaneous income to a greater extent than the growth of miscellaneous expenses. The major factors which affected the growth of net income were:
Income tax attributable to other activities was up by RUB 35 mln due to the growth of income before taxes.
Показатели | 2011 | 2012 | 2013 | Change, 2013/2012, % | For information: formula |
---|---|---|---|---|---|
Net income secured by cash flow | 1,266 | 975 | 210 | −78.5 % | Net profit of the reporting period = (profit of past years revealed in the reporting period x 0.8 + write-off of accounts payable x 0.8 + income on revaluation of financial investments) |
Dynamics of net income secured by cash flow declined in 2011–2013 and coincided with the dynamics of net income for the corresponding periods.
In general, the size of income on sales in 2013 concerning the level of 2012 increased, while the sum of income (loss) before taxes and net profit both relatively 2011 and 2012, decreased in the reporting year.
Overall decrease in net profit in 2013 was primarily due to the growth of negative balance of miscellaneous income and expenses relative to previous reporting period despite increase in income on sales.
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