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Net loss of RAO ES East in 2015 r under IFRS increased by 3,4 times, to 7,5 billion rubles - EastRussia | Far East






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The net loss of RAO ES East in 2015 r under IFRS increased by 3,4 times, to 7,5 billion rubles

PJSC "RAO ES Vostoka" recorded a net loss under IFRS for 2015 year in the amount of 7,52 billion rubles against 2,18 billion rubles in 2014 year, follows from the company's reports

EBITDA under IFRS last year amounted to about 12,8 billion rubles. against 15,4 billion rubles. in 2014 year.
Revenue increased from 150,3 billion rubles. to 162,7 billion rubles. Operating expenses also increased - with 158,2 billion rubles. to 174,3 billion rubles.

Financial revenues amounted to 2 billion rubles. (+ 44,3%), financial expenses - 10,73 billion rubles. (+ 54,4%).
As specified in the company's release, the adjusted net loss in 2015 amounted to 4,2 billion rubles (a year earlier, the profit was reflected after an adjustment in the amount of 3,1 billion rubles).
Free cash flow (FCF) "RAO ES of the East" in the 2015 year was negative and amounted to 5,774 billion rubles. Against the negative FCF for 2014 year in 4,27 billion rubles. The company explained such dynamics by a reduction in cash flow from operating activities before changes in working capital by 19% (to 12,43 billion rubles). Accounts payable grew by this time to 4,74 billion rubles. At the same time, RAO ES of the East retained the cash flow for the purchase of fixed assets at the level of 16,645 billion rubles.


In RAO ES of the East, the results are attributed to a drop in profit from generation due to warmer temperatures during the year, a decrease in water content and electricity supply from hydropower plants, and an increase in the cost of lending.

In addition, RAO ES of the East indexed wages due to rising inflation above the forecast value of the Ministry of Economic Development, which was taken into account in the tariffs, which also affected the results.
Also, the results were influenced by the increased average fuel price - by 8%, to 3 thousand. 456 rub. for t.t. This happened "mainly due to the rise in gas prices of the Sakhalin-1 consortium," the press release stresses. As explained in the presentation of RAO ES of the East, for economic reasons, the company transferred DHA-controlled stations from gas to coal. It was reported that the government this year may allocate 2,244 billion rubles in energy subsidies to reimburse 2015 for the year due to an increase in the purchase price of natural gas from the Sakhalin-1 consortium for Khabarovsk krai consumers.


The net debt of RAO ES of the East increased by 23%, to 80,686 bn. Rub. The total value of long-term and short-term loans at the same time increased by 18%, to 91,656 billion rubles. So, long-term borrowed funds amounted to 48,3 billion rubles. (+ 6%), short-term increased by 33%, to 43,344 billion rubles. due to the nearing maturity of a number of large loans, the company said.

The largest creditors of RAO ES of the East last year were Sberbank (37% of the financial debt) and parent RusHydro (26%). Another 13% accounted for Rosbank, 8% - for the EBRD. Also among the creditors - GPB (7%) and VTB (5%).

Capital expenditure remained at the level of 2014 year, amounting to 19,55 billion rubles. In the current year, capex commitments amount to 33,98 billion rubles, in 2017 - 26,45 billion rubles, in 2018 - 20 billion rubles. As explained in the message, mainly funds will be directed to projects of off-site infrastructure of four Far Eastern stations, as well as reconstruction of equipment. At the same time in "RAO ES of the East" individual investment programs can be revised in the context of optimizing RusHydro's costs.

RAO ES of the East manages the electric power industry of the Far East. The main shareholder is PJSC RusHydro. PJSC RusHydro, following the results of the buyout of shares from minority shareholders, increased the indirect ownership share in RAO ES of the East, as a result, the company's direct and indirect shares in the subsidiary increased to 96,8%. The share of direct ownership remained unchanged and amounted to 84,3911%, while the share of indirect ownership reached 12,3966%.