The consolidated financial statements of JSC IDGC of the North-West for the year ended December 31, 2012 prepared in accordance with IFRS includes performance indicators of the Company and its subsidiaries: JSC Pskovenergosbyt, JSC Pskovenergoagent, JSC Energoservice of the North-West and JSC Lesnaya Skazka.
Key Financial Indicators in accordance with IFRS, RUB million
| Indicator | 2012 | 2011 | 2010 | Growth rate,% 2011/2012 |
|---|---|---|---|---|
| Revenue, including: | 33,419 | 33,288 | 28,899 | 0.4 |
| Electricity transmission | 26,565 | 26,769 | 22,901 | -0.8 |
| Electricity sale | 4,994 | 5,190 | 4,699 | -3.8 |
| Technological connection | 1,412 | 884 | 668 | 59.7 |
| Other revenues | 448 | 445 | 631 | 0.7 |
| Production cost of services | -32,846 | -31,975 | -28,803 | 2.7 |
| Result of operating activities | 574 | 1,325 | -159 | -56.7 |
| Financial expenses, net | -416 | -259 | -397 | 60.6 |
| Profit/(loss) before tax | 466 | 1,253 | -273 | -62.8 |
| Expenses on income tax | -103 | -451 | -40 | -77.2 |
| Profit/(loss) for the year | 362 | 802 | -313 | -54.9 |
| Total aggregate profit/(loss) for the year | 360 | 789 | -308 | -54.4 |
| EBITDA (earnings before interest, tax and depreciation and amortization) | 3,983 | 4,396 | 2,702 | -9.4 |
| DEBT/EBITDA (net debt to EBITDA ratio) | 2.49 | 1.07 | 1.30 | 132.7 |
| Fixed assets | 33,251 | 29,523 | 27,223 | 12.6 |
| Accounts receivable and advances paid | 5,755 | 4,313 | 4,192 | 33.4 |
| Equity | 21,953 | 21,593 | 20,805 | 1.7 |
| Long-term credit and loans | 10,629 | 6,148 | 4,373 | 72.9 |
| Short-term credit and loans | 19 | 80 | 308 | -76.3 |
| ROE (return on equity ratio) | 0.02 | 0.04 | -0.02 | -58.8 |
| QR (quick liquidity ratio) | 1.26 | 1.03 | 1.05 | 21.5 |
The indicators of the consolidated financial statements compared to indicators of accounting (financial) statements of JSC IDGC of the North-West for 2012 were mostly influenced by indicators of subsidiaries' activity at the operating segment "Electricity sale" to which activities of JSC Pskovenergosbyt and JSC Pskovenergoagent are referred.
The consolidated revenue exceeds the Company's revenue (less inter-group turnovers) by 7.22%, including by RUB 4,994 million in electricity sales revenues.
The cost of assets of the segment of electricity sale as of December 31, 2012 was RUB 441 million, which accounts for 1.05% of the consolidated cost of the group's assets.
The indicators of the electricity sale segment have a positive effect on profitability and financial solvency of the group.
The following factors resulted in the significant changes in assets, liabilities, income and expenses:
- The review of the tariff and balance decisions on provision of electricity transmission services carried out in order to comply with Resolution of the RF Government No.1178 of December 29, 2011 on Pricing in the Field of Regulated Prices (Tariffs) in Electric Energy Sector and Resolution No.442 of the RF Government of May 4, 2012 on Operation of Retail Electricity Markets, Full and/or Partial Limitation of Electric Energy Consumption Mode resulted in the decrease in the revenue from sale of electric transmission services. At the same time, the increase in net supply of electric energy to consumers partially compensated the decrease in tariffs. Revenue from the main type of activity of the Company decreased by RUB 131 million, or 0.8%.
- The review of the tariff and balance decisions on provision of electricity transmission services carried out in order to comply with Resolution No.442 of the RF Government of May 4, 2012 on Operation of Retail Electricity Markets, Full and/or Partial Limitation of Electric Energy Consumption Mode resulted in the decrease in revenue from electricity sale services by RUB 197 million, or 3.8%.
- The growth of revenue from technological connection services by RUB 528 million was secured by the increase of the number of fulfilled technological connection agreements.
- The Company's investment activities in the previous years had an effect on the amount of amortization payments. The amortization growth, inflation processes, growth of tariffs for the services of electricity transmission through the grids of UNPG JSC FGC UES resulted in the increase in operating expenses (by 2.7% compared to the previous year).
- The practice of tariff regulation using the RAB method implied investment in assets using means of long-term external financing. This financial strategy had an effect on the Company's performance results: on the one hand, of growth of the balance of "Fixed assets" item in the structure of non-current assets (by RUB 3,728 million) due to the increase in the volumes of fulfillment of investment programs and, on the other hand, of increase of "Long-term credits and loans" in the structure of long-term liabilities of the Company (by RUB 4,481 million).
- The Company's credit portfolio growth was also seriously affected by non-payments of and disputes with consumers with respect to electricity transmission activities.
- The increase in the cost of borrowing along with the loan growth resulted in the growth of financial income by RUB 158 million, or 60.6%, and the growth of capitalized interest by RUB 53 million, or 147%.
Based on the results of 2012 the Company's net profit in accordance with IFRS was RUB 362 million (decreased 2.2 times) and EBITDA was RUB 3,983 million (decreased by 9.4%).