The revenue of PJSC Inter RAO for 2018 amounted to 53.9 billion rubles, up 12.9 billion rubles (31.5 percent), as compared to 2017. Power export revenues amounted to 38.5 billion rubles, up 11.1 billion rubles (40.8 percent), as compared to 2017. This change is primarily attributed to an increase in the ruble equivalent of the sales price related to the price increase on the Nord Pool power market in Lithuania and Finland, the growth of the euro exchange rate, and exports increases in these directions.

The revenue from wholesale electricity and capacity sales decreased by 1.2 billion rubles (8.8 percent) and amounted to 12.1 billion rubles in 2018. This decrease in revenue on the wholesale market for electricity and capacity is related to the decrease in electricity imports from Kazakhstan. Revenues from other sales in 2018 amounted to 3.4 billion rubles, an increase of 2.9 billion rubles (7.9 times). This latter development is due to the changes in the export supply schedule of power-generating equipment.

Production cost in 2018 was 36.1 billion rubles, which is 3.2 billion rubles (9.7 percent) higher than in 2017. The change in production cost reflects several multidirectional factors, including a 1.6-billion-ruble (6.0 percent) increase in the cost of electricity purchased domestically due to the increase in electricity exports mainly to Lithuania and Finland, a 1.1-billion-rubles (18.7 percent) decrease in import costs, largely as a result of a decrease in imports from Kazakhstan (15.9 percent), as well as an increase in other costs of sales by 2.7 billion rubles (11.2 times) within the framework of power-generating equipment export projects.

The gross profit in 2018 was 17.8 billion rubles, compared to 8.1 billion rubles in 2017.

Selling costs changed insignificantly, as compared to 2017, amounting to 3.0 billion rubles.

Administrative expenses increased by 0.8 billion rubles (13.2 percent) compared to 2017 and amounted to 6.5 billion rubles. The increase was mainly influenced by the planned indexation of wages and planned costs for the periodic five-year maintenance of vehicles.

The sales profit in 2018 was 8.3 billion rubles, compared to a 0.7-billion-ruble loss on sales in 2017.

The income from Inter RAO’s ownership shares in other companies decreased by 6.5 billion rubles (47.1 percent) and amounted to 7.3 billion rubles, which was related to lower dividend payments from the group’s subsidiaries.

The balance of interest receivable and payable increased by 0.6 billion rubles (20.7 percent) compared to 2017, standing at 3.8 billion rubles. The interest balance was mainly formed by an increase in the deposit portfolio. Also, the company took out short-term intragroup loans.

The balance of other income and expenses in 2018 was 2.7 billion rubles compared to a negative 2.9 billion rubles in 2017. This change was influenced primarily by income/expenses related to foreign currency translation differences resulting from changes in the exchange rates.