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News

Irkutskenergo Group has released its IFRS consolidated financial statements for 2014

Irkutskenergo Group has released its IFRS consolidated financial statements for 2014. The financial statements have been audited by LLC KPMG.

Key indicators

Indicator [RUB bln]

2014

2013

Change

[%]

Revenue

107.641

100.791

+6.8%

Cost of goods sold

80.637

76.143

+5.9%

Operating income

10.079

11.753

-14.24%

Net income

3.026

6.151

-50.80%

Adjusted net income [1]

9.499

9.494

+0.06%

Adjusted EBITDA [2]

21.359

21.102

+1.22%

[1] Adjusted net income is calculated net of impairment of fixed assets and financial investments (RUB 4.863 bln for 2014 and RUB 0.321 bln for 2013), provisions for impairment of receivables (RUB 1.608 bln for 2014 and RUB 1.462 bln for 2013), expenditure on research and development as part of R&D projects (RUB 0 bln for 2014 and RUB 1.222 bln for 2013), and write-down of financial assets (RUB 0 bln for 2014 and RUB 0.338 bln for 2013). The excluded amounts take into account the impact of the income tax.

[2] Adjusted EBITDA is calculated as operating income less depreciation and amortization and net of impairment of fixed assets (RUB 3.662 bln for 2014 and RUB 0.401 bln for 2013), provisions for impairment of receivables (RUB 2.010 bln for 2014 and RUB 1.827 bln for 2013), expenditure on research and development as part of R&D projects (RUB 0 bln for 2014 and RUB 1.222 bln for 2013), and write-down of financial assets (RUB 0 bln for 2014 and RUB 0.423 bln for 2013).

Key factors that made a substantial impact on the company's performance in 2014:

• A 37.5% year-on-year decrease in prices for capacity for 2014 following a competitive capacity selection;

• Adoption of Decree No. 374 of the Government of the Russian Federation dated April 28, 2014, which stipulates that 65% of capacity of Siberian HPPs shall be paid for at the competitive capacity selection price starting from May 1, 2014;

• A rise in prices in the day-ahead market in the second half of 2014 combined with a decrease in output at Irkutskenergo's HPPs;

• A reduction in heat output at Irkutskenergo's CHPPs, as ambient air temperature was considerably higher than the overall average for the past periods.

Oleg Prichko, CEO of OJSC Irkutskenergo: "We are satisfied with the results for 2014. An anomalously low water level and warm winters in 2013 and 2014 affected Irkutskenergo's plan of operations for 2014, but through joint efforts, the company managed to maintain growth of financial and economic indicators of its operations. The bottom line compared to 2013 was largely affected by deterioration in external conditions, which caused the company to report losses from impairment of fixed assets in the coal segment and of long-term investments."

Press service of OJSC Irkutskenergo

OJSC Irkutskenergo is Russia’s largest power and coal company comprising thermal power plants and hydropower plants, heating networks, open-pit coal mines, haulers, a repair facility and a coal processing plant. The installed capacity of the Company’s power plants totals 12.9 GW, with the capacity of the HPPs exceeding 9 GW. The total output of the coal mines (brown and black coal) amounts to 18.4 mln tons per year. The principal shareholders of OJSC Irkutskenergo are OJSC EuroSibEnergo, Russia’s largest private power company (forming part of En+ Group), which owns a 50.19% stake in OJSC Irkutskenergo, and OJSC Inter RAO holding a 40.007% stake.

April 30, 2015
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