BPGC announces H1 2014 financial results in accordance with IFRS
20 Aug 2014, Ufa- OJSC Bashkirian Power Grids Company, a subsidiary of Sistema JSFC, the largest publicly-traded diversified holding company in Russia and the CIS, hereby discloses its unaudited financial results for H1 2014 prepared in accordance with International Financial Reporting Standards (IFRS).
KEY FINANCIAL RESULTS FOR Q2 AND H1 2014:
In H1 2014, revenuegrew by 9% YoY to RUB 7,024m. In Q2 2014, the indicator rose by 6% YoY to RUB 3,180m. Revenue growth was driven by higher power consumption in the region and indexation of tariffs.
OIBDAincreased by 3% YoY to RUB 2,651m in H1 2014. In Q2 2014, it rose by 18% YoY to RUB 1,118m, driven by revenue growth and the sale of non-core assets.
OIBDA marginin H1 2014 was 38%; in Н1 2014, the OIBDA margin amounted to 35% in Q2 2014.
Net incomefell by 2% YoY to RUB 1,576m in H1 2014 as a result of the one-off positive effect from the recalculation of income tax in H1 2013. In Q2 2014, net income rose by 2% YoY to RUB 647m.
KEY OPERATING RESULTS:
Power consumption grewby 3.8% YoY in H1 2014 and by 3.4% YoY in Q2 2014, as a result of expanding production capacity in the Republic of Bashkortostan.
The number of new consumersincreased by 2.57% YoY in H1 2014 and 2.95% YoY in Q2 2014 due to the successful implementation of the modernisation programme.
Power losses in distribution grids declinedin H1 2014 from8.12% YoY to 8.06% YoY due to the installation of high precision power consumption meters. In transmission grids losses, remained at 1.48%.
Andrey Makarov, CEO of BPGC, commented on the company's results in H1 2014:
"The consistent and efficient execution of our operational strategy has enabled the company to increase revenues by 9% YoY and deliver stable net income of RUB 1.5bn. Installing power consumption metering units has helped us to reduce losses in the distribution networks to 8.06%.
Our energy saving and energy efficiency programme has also started to yield results, driving a 2.57% YoY increase in the number of new connections to the power supply grid.. Power consumption rose by 3.8% due to the development of production facilities in the Republic of Bashkortostan.
BPGC is currently concentrating a lot of effort into upgrading its existing operating facilities and constructing new ones, with the upgrade of two existing 35-110 kV substations and the construction of three new substations scheduled to be completed by the end of the year. BPGC is also upgrading Ufa's power grids using Smart Grid technologies in cooperation with The Israel Electric Corporation Ltd and Siemens LLC. A preliminary feasibility study of the project has been completed, with work due to commence in 2015. A pilot project is already in progress."