PJSC Inter RAO announced financial results for the nine months of 2019 prepared according to the Russian Accounting Standards (RAS). The revenue of PJSC Inter RAO for the first nine months of 2019 amounted to 40.0 billion rubles, up 4.8 billion rubles (13.7 percent) as compared to the first nine months of 2018. Power export revenues totaled 33.6 billion rubles, up 8.9 billion rubles (35.9 percent) in comparison with the corresponding period of the previous year. This change is primarily attributed to an increase in electricity exports and the selling price to Lithuania and Finland.

The revenue from WECM (wholesale electricity and capacity market) electricity and capacity sales decreased by 4.1 billion rubles (39.9 percent), amounting to 6.2 billion rubles in the first nine months of 2019. This decrease in revenue on the wholesale market for electricity and capacity is related to the absence of commercial electricity imports from Kazakhstan.

Production costs in the first nine months of 2019 were 25.9 billion rubles, which is 1.6 billion rubles (6.5 percent) higher than in the corresponding period of the previous year. The change in production cost reflects several multidirectional factors, including a 4.7-billion-ruble (23.6 percent) increase in the cost of electricity and capacity purchased domestically due to the increase in electricity export mainly to Lithuania and Finland, as well as a 3.1-billion-ruble (69.5 percent) decrease in electricity import costs, largely as a result of decreased commercial imports from Kazakhstan.

Gross profit for the first nine months of 2019 amounted to as much as 14.0 billion rubles compared to 10.8 billion rubles in the corresponding period of the previous year.

Selling costs for the first nine months of 2019 amounted to 2.6 billion rubles, which is 0.8 billion rubles (45.2 percent) higher in comparison to the corresponding period of the previous year. A major factor contributing to the increase in the selling costs is the increased cost of infrastructure services that are mainly attributed to the increased exports to Lithuania and Finland, which was offset by an increase in business indicators.

Administrative costs changed insignificantly – by 0.4 billion rubles (9.1 percent) – and amounted to 4.6 billion rubles for the first nine months of 2019.

The sales profit in the first nine months of 2019 increased by 2.0 billion rubles (42.4 percent), amounting to 6.8 billion rubles. The income from share ownership in other companies decreased by 3.8 billion rubles (72.0 percent), amounting to 1.5 billion rubles, which was related to smaller volumes of dividend payments from Inter RAO group subsidiaries. The balance of interest receivable and payable changed insignificantly compared to the corresponding period of 2018, standing at 3.1 billion rubles. The balance of other income/expenses in the first nine months of 2019 was minus 2.8 billion rubles compared to 1.9 billion rubles in the corresponding period of 2018. This change was influenced primarily by income/expenses related to foreign currency translation differences resulting from changes in the exchange rates.

As a result, net profit for the first nine months of 2019 amounted to 7.0 billion rubles against 12.8 billion rubles in the corresponding period of 2018. At the same time, the company’s foreign economic activity saw positive dynamics (a two-billion-ruble increase).

As of September 30, 2019, total assets of Inter RAO increased by 22.9 billion rubles (4.5 percent), to 529.3 billion rubles, compared to December 31, 2018.

Non-current assets changed insignificantly in comparison with the beginning of the year, increasing by 2.7 billion rubles (0.8 percent) and amounting to 358.1 billion rubles.

As of September 30, 2019, current assets increased by 20.2 billion rubles (13.3 percent), amounting to 171.2 billion rubles. As of September 30, 2019, the debt load amounted to 97.7 billion rubles. The debt portfolio is represented by short-term borrowed intra-group resources. Inter RAO’s net debt amounted to minus 60.1 billion rubles compared to minus 71.7 billion rubles as of the beginning of the year.

Total debt (excluding loans and borrowings) decreased by 0.3 billion rubles (4.1 percent) compared to the beginning of the year, amounting to 6.8 billion rubles as of September 30, 2019.