OREANDA-NEWS. IDGC of Centre has published its consolidated financial statements for 2014 in accordance with IFRS. Consolidated revenues of the Company for the period amounted to 87,0 bln RUB, including for electric energy transmission — 69,1 bln RUB, from resale of electric energy and power — 15,1 bln RUB, from grid connection — 1,6 bln RUB and other revenue — 1,2 bln RUB. Earnings before interest, taxes, depreciation and amortization (EBITDA1) amounted to 7,8 bln RUB, adjusted EBITDA2 reached 16,7 bln RUB. Adjusted profit for the period3 was 4,0 bln RUB.

Data in billion RUB, unless specified otherwise

Indicators 12M 2013 12M 2014 Change, %
Revenue (total), including: 93,3 87,0 -6,8%
Revenue from electricity transmission 61,4 69,1 12,5%
Revenue from resale of electric energy and power 29,8 15,1 -49,3%
Revenue from grid connection 1,1 1,6 45,5%
Other revenue 1,0 1,2 20,0%
Operating costs -91,2 -88,9 -2,5%
Other income 1,3 1,2 -7,7%
Operating profit 3,4 -0,7 -120,6%
EBITDA1 11,3 7,8 -31,0%
Adjusted EBITDA2 19,9 16,7 -16,1%
Profit for period 0,3 (3,3) -1200,0%
Adjusted profit for period3 8,0 4,0 -50%
Indicators As at 31.12.2013 As at 31.12.2014 Change, %
Total equity 41,8 38,9 -6,9%
Total assets 96,0 93,8 -2,3%
Loans and credits 33,1 37,3 12,7%
Cash and cash equivalents 1,1 0,4 -63,6%
Net debt4 32,0 36,9 15,3%
[1] EBITDA is calculated as follows: profit for period + profit tax + financial costs – financial income + depreciation charges
[2] Adjusted EBITDA is calculated as EBITDA except for the provisions for impairment of accounts receivable and disposal of fixed assets
[3] Adjusted profit for the period is calculated as Profit for the period except for the provisions for impairment of accounts receivable and related deferred income tax on profits
[4] Net debt is calculated as follows: long-term debt + short-term debt – cash and cash equivalents

In connection with the execution of IDGC of Centre in 2013-2014 of functions of a supplier of last resort and accounting for income from the electricity transmission in the income from the sale of electricity, the comparison of the proceeds received by the Company for the current and previous year for the electricity transmission services and for services from the resale of electric energy and power should be carried out under comparable conditions.

Data in billion RUB, unless specified otherwise

Indicators* 12M 2013 12M 2014 Change, %
Revenue from electricity transmission (like-for-like) 75,2 75,9 0,9%
Revenue from resale of electric energy and power (like-for-like) 16,0 8,3 -48,1%
[*]According to management accounting

Change in consolidated revenue in 2014 is mainly due to a decrease in revenue from the resale of electric energy and power as a result of the termination of the functions of the supplier of last resort in the Bryansk, Orel, Kursk, Tver and Smolensk regions.

Operating costs for 2014 amounted to 88,9 bln RUB, which is 2.5% less than the figure for 2013. The main factors of growth in the expenses were non-cash items "Loss on impairment of fixed assets" in the amount of 9,1 bln RUB and "Losses of previous years", having increased from 0,4 bln RUB to 1,4 bln RUB. The most significant cost reductions occurred under the item "Provision for impairment of accounts receivable" from 8,6 bln RUB in 2013 to 0,0 bln RUB in 2014, as well as under the item "Electric energy for resale" of 6,9 bln RUB. Depreciation at the end of 2014 was 8,6 bln RUB, which is 0,6 bln RUB more than last year.

The Company’s EBITDA in the reporting period amounted to 7,8 bln RUB (11,3 bln RUB in 2013), profit for the period amounted to (-3,3) bln RUB (0,3 bln RUB in 2013). Change in the financial results was mainly due to the recognition of a loss on fixed assets impairment of 9,1 bln RUB on the results of testing as at December 31, 2014. Adjusted EBITDA in the reporting period amounted to 16,7 bln RUB, which is 16.1% less than in 2013 (19,9 bln RUB). Adjusted profit for the period in 2014 decreased by 50.0% and amounted to 4,0 bln RUB (8,0 bln RUB in 2013). The difference between the reporting and adjusted indicators is explained with reflection of the following non-cash transactions: provision for impairment of accounts receivable, economic depreciation of fixed assets and adjustment of deferred income tax associated with these transactions.

As at December 31, 2014 IDGC of Centre’s assets totalled 93,8 bln RUB (as at December 31, 2013 — 96,0 bln RUB). Net debt4 reached 36,9 bln RUB (as at December 31, 2012 — 32,0 bln RUB). The increase in liabilities was due to the need to finance the investment program and current operations.