OJSC Bashkirenergo: Bashkirenergo publishes its financial results for FY 2011
EquityStory.RS, LLC-News: OJSC Bashkirenergo / Key word(s): Final
Results
OJSC Bashkirenergo: Bashkirenergo publishes its financial results for
FY 2011
24.04.2012 / 10:30
---------------------------------------------------------------------
Bashkirenergo publishes its financial results for FY 2011
April 23, 2012, Ufa (Russian Federation, Republic of Bashkortostan) - OJSC
'Bashkirenergo' (MICEX, RTS: BEGY, ISIN: RU0009044242) - publishes audited
consolidated financial statements for FY2011 prepared in accordance with
IFRS.
OJSC 'Bashkirenergo' managed to improve its results of 2010: net profit
from continuing operations reached 3,409 thsd RUR and accounting results
from alienation of retail company - 7,949 mln. RUR.
On September 12, 2011 a deal was struck between JSC 'RusHydro' and OJSC
'Bashkirenergo' to sell LLC 'Energeticheskaya Sbytovaya Kompaniya
Bashkortostana' (LLC ESKB) to LLC ESK RusHydro (a subsidiary of JSC
'RusHydro').
For the purpose to present comparable indicators in accordance with the
rules of reporting all indicators of 2010 were corrected taking into
account sale of LLC ESKB.
KEY FINANCIAL RESULTS:
- The Company's revenue for 2011 declined by 10.5% to 56,261
mln RUR (1,747 mln USD) versus the same period of 2010.
Revenue for the fourth quarter of 2011 grew by 32.4% and
amounted to 15,313 mln RUR (476 mln. USD).
- Operating profit increased by 9% Y-o-Y reaching 4,386 mln RUR (136 mln
USD). Operational profit for the Q4 2011 dropped by 82.8% compared to
the same period of the previous year to 148 mln RUR (4.6 mln USD).
- OIBDA after 12 months of 2011 was 7,908 mln RUR (246 mln USD) or 4.53%
higher comparing with the same period last year. The same indicator for
the fourth quarter of 2011 was 1,020 mln RUB (32 mln USD), reduced by
41.68% Y-o-Y.
- Net profit for 2011 including result from sale of LLC 'ESKB' amounted
to 7,949 mln RUR (247 mln USD), up 185 % in comparison with 2012.
- Net profit from continuing operations of 2011 increased by 25% to 3,409
mln RUR (106 mln USD) compared to 2010 results. In Q4 of 2011 net
profit from continuing operations reduced by 64% versus similar
indicator of the previous year and amounted to 167 mln RUR (5 mln.
USD).
- OIBDA margin for 12 months increased from 12% in 2010 to 14% this year.
- As at December 31, 2011 the Company's financial debt amounted to 2,268
mln RUR (70.4 mln USD), with debt/OIBDA ratio at the level of 0.29.
KEY OPERATING RESULTS:
- OJSC 'Bashkirenergo' total power generation in 2011 was 22 779 mln kWh,
gaining 0.7% Y-o-Y.
- The capacity factor of OJSC 'Bashkirenergo' power stations remained at
a level of 61%.
- Heat output of the Company amounted to 25,118 thousand Gcal gaining 4 %
over the results of 2010.
- In 2011 the specific consumption of equivalent fuel decreased by 3
g/kWh for electricity generation to 320 g/kWh, and by 1.4 kg/Gcal for
heat output to 143 kg/Gcal compared to the previous year.
- The transmitted electricity losses in 2011 increased from 1.44% to
1.48% in the transmission grid, with distribution grid losses
increasing from 8.82% to 9.13%.
Andrey Makarov, CEO of OJSC 'Bashkirenergo' commented the results 2011:
«A share of OJSC 'Bashkirenergo' in total Russian power output reached
2.19% in 2011, in UPS Urals it was 8.9%. During the last year power
generation was extended by 0.7% to 22 779 mln kWh . The year results
demonstrated that the Company remains competitive in second pricing zone
Urals with traditional excess of generating capacity. We consider the
growth of the heat output by 4.1% Y-o-Y as exceptionally positive on the
background of complicated situation in the heat generation sector,
underfunding from the side of owners of regional thermal grids and
established low tariffs. Despite negative impact of heat sector on
holding's total results we managed to improve indicators in comparison with
2010. The Company's net profit significantly exceeded target indicator and
reached 7,949 mln. RUR. Sale of power supply asset executed in September
had a material impact on financial results of the Company. We have started
the process of Company's reorganization for the purpose to comply with the
Russian legislation and sale of LLC 'ESKB' became the first step in this
process».
RESULTS OVERVIEW
The FY 2011 power generation increased by 0.7% to 22,779.34 mln kWh. The
heat output of OJSC 'Baskirenergo' grew 4.1% to 25 118 thousand Gcal in
2011.
A decrease in specific consumption of equivalent fuel for electricity
generation (-3 g/kWh) and heat output (-1.4 kg/Gcal) compared to 2010
substantially contributed to a positive financial results of OJSC
'Bashkirenergo'. The biggest impact on fuel consumption rate was made by
the implemented energy saving and energy efficiency programs, including the
redistribution of heating load.
Key Financial Performance Indicators, in mln RUR
^
Indicator
2011 2010 Change %
Revenue 56 261 62 852 -10%
Operating expenses (51 875) (58 832) -12%
Operating Profit 4 386 4 020 9%
Profit before income tax 4 447 3 981 12%
Income tax expenses (1 038) (1 262) -18%
Profit/(losses) from continuing operations 3 409 2 719 25%
Profit from discontinued operations 4 540 72 6 205%
Profit/(losses) for the period 7 949 2 791 185%
OIBDA 7 908 7 468 4,5%
OIBDA margin 14% 12% 2 ..
EBIT margin 6% 8% 2 ..
Net margin 6% 4% 2 ..
°
Key Operating Results
^
Indicator 2011 2010 Change %
Installed electric capacity, MW (average) 4 296 4 248 1,1%
Installed electric capacity, MW (average) 13 13 -1,7%
035 280
Electricity generation, mln kWh 22 22 0,7%
779 612
Heat output, thousand Gcal 25 24 4,1%
118 128
Electric capacity factor, % 61 61 0%
Specific consumption of equivalent fuel for 320 323 -1%
electricity generation, g/kWh
Specific consumption of equivalent fuel for heat 143,2 144,6 -1,4%
output, kg/Gcal
Distribution grid losses, % 9,13% 8,82% 0,31
b.p.
Transmission grid losses, % 1,48% 1,44% 0,04
b.p.
°
REVENUE
The company's revenue declined by 10% comparing with the 2010 year result
to 56 261 mln RUR. Power and capacity comprising the largest share in
revenue structure (72% of revenue) reduced by 15% to 40 353 mln RUR. At the
same time operating expenses declined greater than revenue by 12% to 51 875
mln RUR.
Revenue reduction is a result of reclassification of all operations of LLC
ESKB into the separate line 'Profit from the discontinued operations'.
Considering the fact that before January 1, 2011 OJSC 'Bashkirenergo' had
the status of the guaranteeing provider (retail company) with LLC ESKB
acting only as an agent, its deconsolidation had the most impact on revenue
and operational expenses for 2010 and 2011.
OPERATING EXPENSES
The decision to sell the retail company mostly impacted the amount of
purchased electricity which decreased in 2011 by 79% versus 2010 result to
3 304 mln RUR (103 mln USD).
Fuel costs 2011 representing 52% of total operating expenses increased 12%
and amounted 26,877 mln RUR (835 mln USD) and were driven by a 15% gas
price indexation, as well as by a 4% rise in heat output, 0.3% rise of
power output by thermal power plants. The slower growth pace of fuel costs
compared to gas price hike is explained by the reduction in specific
consumption of equivalent fuel.
Fixed costs which represent 36% of total operating expenses declined in
2011 by % amounted to 18,506 mln RUR.
Staff costs being the largest item of fixed costs (17% of total operating
expenses) rose by 4% against 2010 to 8,737 mln RUR (271 mln USD).
Repairs and maintenance together with costs of materials and spare parts
(7% of operating expenses) were cut down 29% in 2011 compared to 2010 and
comprised 3,314 mln RUR mostly due to a 48% cut in expenditure on material
and spare parts.
Other operating expenses declined by 9% to 833 mln RUR (26 mln USD).
FINANCIAL POSITION
As of the balance sheet date, the total assets of OJSC 'Bashkirenergo'
amounted to 65,033 mln RUR (2,019 mln USD) increasing by 13% from the
beginning of the year.
The share of non-current assets was 83% of total assets and amounted 53,769
mln RUR (1,670 mln USD), while the share of current assets was 17% or
11,264 mln RUR (350 mln USD). In 2011 non-current assets increased by 4% as
a result of 10% increase in property, plant and equipment due to new
commissioning and increase of construction in-progress. The disposal of LLC
ESKB lead to increase of current assets by 78% due to 4 time increase of
cash and equivalents to 2 953 mln RUR and deposits to 2,006 mln RUR.
The 33% growth of trade and other receivables was mainly driven by growth
of receivables for heating of housing and community facilities.
Capital and reserves as of December 31, 2011 made up 86% of the total
equity and liabilities amounting to 55,713 mln RUR (1,668 mln USD). Upon
the disposal of the retail company loans and borrowings became the largest
liability (2,265 mln RUR or 70 mln USD), along with trade and other
payables (2,312 mln RUR of 72 mln USD) and other tax payables (1,044 mln
RUR or 32 mln USD) comprising 24%, 25% and 2% of capital and liabilities
respectively.
The free cash flow grew 88% to 6,553 mln RUR (204 mln USD) mostly due to
5,7 bln RUR (179 mln USD) of cash received from the disposal of a
subsidiary.
CAPITAL EXPENDITURE
Investment program of 2011 made up 6,029 mln RUR (184 mln USD) increasing
by 93% compared to the previous year. The growth of CAPEX was conditioned
by the decision of the Board of Directors on renewal of construction of
CCGT CHP plant-5 dated April 29, 2011. Construction of CCGT-60 unit at CHP
plant-2 of Ufa and GTPP-16PA with waste-heat boiler at Zauralskaya CHP
plant were the other key projects of generating capacities construction in
2011.
EVENTS AFTER THE REPORTING DATE
On March 26, 2012 the Board of Directors of OJSC 'Bashkirenergo' had a
meeting where the main terms and conditions of Company's reorganization
were accepted for further approval at the extraordinary General meeting of
shareholders which will take place on June 20, 2012.
The proposed reorganization of OJSC 'Bashkirenergo' is to be conducted in
the form of a spin-off resulting in the establishment of two companies:
generating company called Open Joint-Stock Company 'Bashenergoactiv' (JSC
Bashenergoactiv) which will obtain the shares of LLC 'Bashkir Generation
Company', LLC 'Bashkir Heat Distribution Grid', and LLC 'CCGT CHPP-5', and
power grid company called Joint Stock Company «Bashkirian Power Grid
Company» (JSC 'BPGC').
Simultaneously with the spin-off JSC Bashenergoactiv is to be merged with
Open Joint Stock Company 'INTER RAO UES' (JSC 'INTER RAO UES').
Subsequently ordinary and type A preference shares of JSC 'Bashenergoactiv'
are to be converted into additional shares of JSC 'INTER RAO UES' in
accordance with merger agreement of JSC 'Bashenergoactiv' to JSC 'INTER RAO
UES' and based on the decisions of general shareholders meetings of OJSC
'Bashkirenergo' and JSC 'INTER RAO UES'.
OUTLOOKS
It is expected that growing rates of electricity prices shall be materially
lower than in 2011. Readjustment of tariffs will start from July 1, 2012.
The Federal Tariff Service stipulated 6% growth of tariffs for population
(or 3% year average) and 15% for other consumers (or 7.5% year average).
The set KOM prices for the 2012 capacity being 4% lower than in this year
makes the management take even more cost cutting measures of the fixed
costs in order to maintain the generation business margins.
On December 30, 2012 the State Committee on tariffs of RB determined
long-term regulation characteristics and established tariffs 5-year ahead
for OJSC 'BSK' This will make it possible to forecast financial results
with high degree of reliability
OJSC BASHKIRENERGO AND SUBSIDARIES
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 31 DECEMBER 2011 (AUDITED)
IN MILLIONS OF RUSSIAN ROUBLES
^
31/12/ 31/12/
2011 2010
ASSETS
Non-current assets
Property, plant and equipment 52,213 47,675
Advances paid for acquisition of property, plant and
equipment 1,332 3,450
Inventories 156 183
Trade and other receivables 9 121
Other non-current assets 59 59
53,769 51,488
Current assets
Inventories 1,300 1,169
Trade and other receivables 3,531 2,658
Advances paid and prepaid expenses 270 427
Investments 2,006 42
Income tax prepaid 244 181
VAT recoverable and other taxes prepaid 960 1,272
Cash and cash equivalents 2,953 569
11,264 6,318
TOTAL ASSETS 65,033 57,806
EQUITY AND LIABILITIES
Capital and reserves
Share capital 1,093 1,093
Treasury shares (282) (282)
Retained earnings 54,902 49,023
Equity attributable to owners of the parent company 55,713 49,834
Non-controlling interests - 285
TOTAL EQUITY 55,713 50,119
Non-current liabilities
Loans and borrowings 2,265 -
Employee benefit obligations 625 584
Deferred tax liabilities 918 1,549
Other non-current liabilities 241 81
4,049 2,214
Current liabilities
Loans and borrowings 3 160
Trade and other payables 2,312 1,203
Advances received from customers 1,036 2,230
Accrued expenses and provisions 847 935
Income tax payable 29 108
Other taxes payable 1,044 837
5,271 5,473
TOTAL LIABILITIES 9,320 7,687
TOTAL EQUITY AND LIABILITIES 65,033 57,806
°
OJSC BASHKIRENERGO AND SUBSIDARIES
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE THREE AND NINE MONTHS ENDED 31 DECEMBER 2011 (AUDITED)
IN MILLIONS OF RUSSIAN ROUBLES
^
Year ended
°
^
December 31, 2011 December 31, 2010
°
^
Revenue
Electricity and capacity 40,353 47,365
Heat energy 12,900 12,280
Other revenue 3,008 3,207
56,261 62,852
Operating expenses
(26,8 (23,9
Fuel 77) 94)
(8,73 (8,37
Staff costs 7) 8)
(3,46 (3,48
Depreciation 1) 7)
(3,30 (15,7
Purchase of electricity 4) 77)
Compensation to quarantining supplier for losses caused (2,67
by transmission of electricity 5) -
(2,43 (2,95
Repair and maintenance 1) 4)
(1,03
Change in provision for doubtful debts 6) (40)
(1,69
Materials and spare parts (883) 7)
Charity (687) (681)
Water usage (513) (514)
Taxes, other than income tax (479) (492)
Rent (151) (132)
Change in provision for tax and legal contingencies 203 362
Loss on disposal of property, plant and equipment (11) (132)
Other operating expenses (833) (916)
(51,8 (58,8
75) 32)
Operating profit 4,386 4,020
Finance income 112 -
Finance cost (51) (39)
Profit before income tax 4,447 3,981
(1,03 (1,26
Income tax 8) 2)
Profit from continuing operations 3,409 2,719
DISCOUNTED OPERATIONS
Profit from discontinued operations 4,540 72
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 7,949 2,791
Attributable to:
Owners of the parent company 7,949 2,761
Non-controlling interests - 30
7,949 2,791
EARNINGS PER SHARE FROM CONTINUING AND DISCONTINUED
OPERATIONS
Basic and diluted earnings per share (in Roubles) 7.32 2.57
EARNINGS PER SHARE FROM CONTINUING OPERATIONS
Basic and diluted earnings per share (in Roubles) 3.18 2.49
°
OJSC BASHKIRENERGO AND SUBSIDARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2011 (AUDITED)
IN MILLIONS OF RUSSIAN ROUBLES
^
Year ended
December Year ended
December
31, 2011 31, 2010
OPERATING ACTIVITIES
Profit before income tax 10,131 4,077
Adjustments for:
Depreciation 3,465 3,497
Change in provision for tax and
legal contingencies (203) (363)
Change in provision for unused
vacations and bonuses (126) 371
Income on disposal of property,
plant and equipment 11 132
Change in allowance for doubtful
receivables 1,337 40
Income from the disposal of a
subsidiary (5,445) -
Finance income (112) -
Finance losses 51 39
Other adjustments 122 (50)
Operating cash flow before
movements in working capital 9,231 7,743
Change in inventories (303) 347
Change in trade and other
receivables (2,625) (246)
Change in advances paid and prepaid
expenses (98) 58
Change in taxes receivable, other
than income tax 118 (139)
Change in trade and other payables 2,225 (590)
Change in advances received from
customers (508) (295)
Change in taxes payable, other than
income tax 271 143
Net cash provided by operations 8,311 7,021
Income tax paid (3,177) (1,130)
Interest paid (98) (74)
Net cash generated from operating
activities 5,036 5,817
INVESTING ACTIVITIES
Purchase of property, plant and
equipment (6,244) (3,289)
Proceeds from disposal of property,
plant and equipment 337 246
Net cash proceeds from the disposal
of a subsidiary 5,246 -
Disposal of Special Purpose
Entities (158) -
Purchase of investments (6,613) (457)
Proceeds from disposal of
investments 4,632 511
Interest on deposits 112 -
Net cash used in investing
activities (2,688) (2,989)
FINANCING ACTIVITIES
Dividends paid (2,066) (1,237)
Repurchase of ordinary shares - (282)
Proceeds from loans and borrowings 7,336 15,665
Principal repayments on loans and
borrowings (5,234) (17,003)
Net cash received from (used in)
financing activities 36 (2,857)
Net increase/(decrease) in cash and
cash equivalents 2,384 (29)
Cash and cash equivalents at
beginning of the period 569 598
Cash and cash equivalents at end
of the period 2,953 569
°
OJSC 'Bashkirenergo' - is a major regional utility company in Russia,
ranked 5 by installed electric capacity and 7 by installed heat capacity
among the Russian territorial generating companies. By the amount of heat
output OJSC 'Bashkirenergo' is among the 10 major heat producing companies
in the world. OJSC 'Bashkirenergo has a dominating position at the
electricity and heat market of the Republic of Bashkortostan, which is one
of the top-ten developed regions of Russia. The OJSC 'Bashkirenergo' owns
companies which produce electricity and heat, conduct their transmission to
consumers. The Installed electric capacity is 4,295 MW, the installed heat
capacity is 13,141 Gcal/h.
Contacts :
^
Head of Corporate Communications OJSC 'Bashkirenergo'
Luiza Lesnaya
Tel: + 7 (347) 269-42-28
+ 7 (985) 160-97-76
lesnaya@bashkirenergo.ru
°
Statements contained in this press release may contain forward-looking
information that reflects management's current view and estimates of future
economic circumstances, industry conditions, company performance, and
financial results. Any statements, expectations, capabilities, plans and
assumptions contained in this press release that do not describe historical
facts such as statements regarding the declaration or payment of dividends,
the direction of future operations, the implementation of principal
operating and financing strategies and capital expenditure plans, the
factors or trends affecting financial condition, liquidity or results of
operations are forward-looking statements and involve a number of risks and
uncertainties. There is no guarantee that these results will actually
occur. The statements are based on many assumptions and factors, including
general economic and market conditions, industry conditions and operating
factors. Any changes in such assumptions or factors could cause actual
results to differ materially from current expectations.
End of Corporate News
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Language: English
Company: OJSC Bashkirenergo
Kommsomolskaya st,126
450096 Ufa
Russia
Phone: + 7 (347) 269-43-59
E-mail: secr@iap.bashkirenergo.ru
Internet: www.bashkirenergo.ru
ISIN: RU0009044242
End of News EquityStory.RS, LLC News-Service
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166059 24.04.2012
EquityStory.RS, LLC-News: OJSC Bashkirenergo / Key word(s): Final
Results
OJSC Bashkirenergo: Bashkirenergo publishes its financial results for
FY 2011
24.04.2012 / 10:30
---------------------------------------------------------------------
Bashkirenergo publishes its financial results for FY 2011
April 23, 2012, Ufa (Russian Federation, Republic of Bashkortostan) - OJSC
'Bashkirenergo' (MICEX, RTS: BEGY, ISIN: RU0009044242) - publishes audited
consolidated financial statements for FY2011 prepared in accordance with
IFRS.
OJSC 'Bashkirenergo' managed to improve its results of 2010: net profit
from continuing operations reached 3,409 thsd RUR and accounting results
from alienation of retail company - 7,949 mln. RUR.
On September 12, 2011 a deal was struck between JSC 'RusHydro' and OJSC
'Bashkirenergo' to sell LLC 'Energeticheskaya Sbytovaya Kompaniya
Bashkortostana' (LLC ESKB) to LLC ESK RusHydro (a subsidiary of JSC
'RusHydro').
For the purpose to present comparable indicators in accordance with the
rules of reporting all indicators of 2010 were corrected taking into
account sale of LLC ESKB.
KEY FINANCIAL RESULTS:
- The Company's revenue for 2011 declined by 10.5% to 56,261
mln RUR (1,747 mln USD) versus the same period of 2010.
Revenue for the fourth quarter of 2011 grew by 32.4% and
amounted to 15,313 mln RUR (476 mln. USD).
- Operating profit increased by 9% Y-o-Y reaching 4,386 mln RUR (136 mln
USD). Operational profit for the Q4 2011 dropped by 82.8% compared to
the same period of the previous year to 148 mln RUR (4.6 mln USD).
- OIBDA after 12 months of 2011 was 7,908 mln RUR (246 mln USD) or 4.53%
higher comparing with the same period last year. The same indicator for
the fourth quarter of 2011 was 1,020 mln RUB (32 mln USD), reduced by
41.68% Y-o-Y.
- Net profit for 2011 including result from sale of LLC 'ESKB' amounted
to 7,949 mln RUR (247 mln USD), up 185 % in comparison with 2012.
- Net profit from continuing operations of 2011 increased by 25% to 3,409
mln RUR (106 mln USD) compared to 2010 results. In Q4 of 2011 net
profit from continuing operations reduced by 64% versus similar
indicator of the previous year and amounted to 167 mln RUR (5 mln.
USD).
- OIBDA margin for 12 months increased from 12% in 2010 to 14% this year.
- As at December 31, 2011 the Company's financial debt amounted to 2,268
mln RUR (70.4 mln USD), with debt/OIBDA ratio at the level of 0.29.
KEY OPERATING RESULTS:
- OJSC 'Bashkirenergo' total power generation in 2011 was 22 779 mln kWh,
gaining 0.7% Y-o-Y.
- The capacity factor of OJSC 'Bashkirenergo' power stations remained at
a level of 61%.
- Heat output of the Company amounted to 25,118 thousand Gcal gaining 4 %
over the results of 2010.
- In 2011 the specific consumption of equivalent fuel decreased by 3
g/kWh for electricity generation to 320 g/kWh, and by 1.4 kg/Gcal for
heat output to 143 kg/Gcal compared to the previous year.
- The transmitted electricity losses in 2011 increased from 1.44% to
1.48% in the transmission grid, with distribution grid losses
increasing from 8.82% to 9.13%.
Andrey Makarov, CEO of OJSC 'Bashkirenergo' commented the results 2011:
«A share of OJSC 'Bashkirenergo' in total Russian power output reached
2.19% in 2011, in UPS Urals it was 8.9%. During the last year power
generation was extended by 0.7% to 22 779 mln kWh . The year results
demonstrated that the Company remains competitive in second pricing zone
Urals with traditional excess of generating capacity. We consider the
growth of the heat output by 4.1% Y-o-Y as exceptionally positive on the
background of complicated situation in the heat generation sector,
underfunding from the side of owners of regional thermal grids and
established low tariffs. Despite negative impact of heat sector on
holding's total results we managed to improve indicators in comparison with
2010. The Company's net profit significantly exceeded target indicator and
reached 7,949 mln. RUR. Sale of power supply asset executed in September
had a material impact on financial results of the Company. We have started
the process of Company's reorganization for the purpose to comply with the
Russian legislation and sale of LLC 'ESKB' became the first step in this
process».
RESULTS OVERVIEW
The FY 2011 power generation increased by 0.7% to 22,779.34 mln kWh. The
heat output of OJSC 'Baskirenergo' grew 4.1% to 25 118 thousand Gcal in
2011.
A decrease in specific consumption of equivalent fuel for electricity
generation (-3 g/kWh) and heat output (-1.4 kg/Gcal) compared to 2010
substantially contributed to a positive financial results of OJSC
'Bashkirenergo'. The biggest impact on fuel consumption rate was made by
the implemented energy saving and energy efficiency programs, including the
redistribution of heating load.
Key Financial Performance Indicators, in mln RUR
^
Indicator
2011 2010 Change %
Revenue 56 261 62 852 -10%
Operating expenses (51 875) (58 832) -12%
Operating Profit 4 386 4 020 9%
Profit before income tax 4 447 3 981 12%
Income tax expenses (1 038) (1 262) -18%
Profit/(losses) from continuing operations 3 409 2 719 25%
Profit from discontinued operations 4 540 72 6 205%
Profit/(losses) for the period 7 949 2 791 185%
OIBDA 7 908 7 468 4,5%
OIBDA margin 14% 12% 2 ..
EBIT margin 6% 8% 2 ..
Net margin 6% 4% 2 ..
°
Key Operating Results
^
Indicator 2011 2010 Change %
Installed electric capacity, MW (average) 4 296 4 248 1,1%
Installed electric capacity, MW (average) 13 13 -1,7%
035 280
Electricity generation, mln kWh 22 22 0,7%
779 612
Heat output, thousand Gcal 25 24 4,1%
118 128
Electric capacity factor, % 61 61 0%
Specific consumption of equivalent fuel for 320 323 -1%
electricity generation, g/kWh
Specific consumption of equivalent fuel for heat 143,2 144,6 -1,4%
output, kg/Gcal
Distribution grid losses, % 9,13% 8,82% 0,31
b.p.
Transmission grid losses, % 1,48% 1,44% 0,04
b.p.
°
REVENUE
The company's revenue declined by 10% comparing with the 2010 year result
to 56 261 mln RUR. Power and capacity comprising the largest share in
revenue structure (72% of revenue) reduced by 15% to 40 353 mln RUR. At the
same time operating expenses declined greater than revenue by 12% to 51 875
mln RUR.
Revenue reduction is a result of reclassification of all operations of LLC
ESKB into the separate line 'Profit from the discontinued operations'.
Considering the fact that before January 1, 2011 OJSC 'Bashkirenergo' had
the status of the guaranteeing provider (retail company) with LLC ESKB
acting only as an agent, its deconsolidation had the most impact on revenue
and operational expenses for 2010 and 2011.
OPERATING EXPENSES
The decision to sell the retail company mostly impacted the amount of
purchased electricity which decreased in 2011 by 79% versus 2010 result to
3 304 mln RUR (103 mln USD).
Fuel costs 2011 representing 52% of total operating expenses increased 12%
and amounted 26,877 mln RUR (835 mln USD) and were driven by a 15% gas
price indexation, as well as by a 4% rise in heat output, 0.3% rise of
power output by thermal power plants. The slower growth pace of fuel costs
compared to gas price hike is explained by the reduction in specific
consumption of equivalent fuel.
Fixed costs which represent 36% of total operating expenses declined in
2011 by % amounted to 18,506 mln RUR.
Staff costs being the largest item of fixed costs (17% of total operating
expenses) rose by 4% against 2010 to 8,737 mln RUR (271 mln USD).
Repairs and maintenance together with costs of materials and spare parts
(7% of operating expenses) were cut down 29% in 2011 compared to 2010 and
comprised 3,314 mln RUR mostly due to a 48% cut in expenditure on material
and spare parts.
Other operating expenses declined by 9% to 833 mln RUR (26 mln USD).
FINANCIAL POSITION
As of the balance sheet date, the total assets of OJSC 'Bashkirenergo'
amounted to 65,033 mln RUR (2,019 mln USD) increasing by 13% from the
beginning of the year.
The share of non-current assets was 83% of total assets and amounted 53,769
mln RUR (1,670 mln USD), while the share of current assets was 17% or
11,264 mln RUR (350 mln USD). In 2011 non-current assets increased by 4% as
a result of 10% increase in property, plant and equipment due to new
commissioning and increase of construction in-progress. The disposal of LLC
ESKB lead to increase of current assets by 78% due to 4 time increase of
cash and equivalents to 2 953 mln RUR and deposits to 2,006 mln RUR.
The 33% growth of trade and other receivables was mainly driven by growth
of receivables for heating of housing and community facilities.
Capital and reserves as of December 31, 2011 made up 86% of the total
equity and liabilities amounting to 55,713 mln RUR (1,668 mln USD). Upon
the disposal of the retail company loans and borrowings became the largest
liability (2,265 mln RUR or 70 mln USD), along with trade and other
payables (2,312 mln RUR of 72 mln USD) and other tax payables (1,044 mln
RUR or 32 mln USD) comprising 24%, 25% and 2% of capital and liabilities
respectively.
The free cash flow grew 88% to 6,553 mln RUR (204 mln USD) mostly due to
5,7 bln RUR (179 mln USD) of cash received from the disposal of a
subsidiary.
CAPITAL EXPENDITURE
Investment program of 2011 made up 6,029 mln RUR (184 mln USD) increasing
by 93% compared to the previous year. The growth of CAPEX was conditioned
by the decision of the Board of Directors on renewal of construction of
CCGT CHP plant-5 dated April 29, 2011. Construction of CCGT-60 unit at CHP
plant-2 of Ufa and GTPP-16PA with waste-heat boiler at Zauralskaya CHP
plant were the other key projects of generating capacities construction in
2011.
EVENTS AFTER THE REPORTING DATE
On March 26, 2012 the Board of Directors of OJSC 'Bashkirenergo' had a
meeting where the main terms and conditions of Company's reorganization
were accepted for further approval at the extraordinary General meeting of
shareholders which will take place on June 20, 2012.
The proposed reorganization of OJSC 'Bashkirenergo' is to be conducted in
the form of a spin-off resulting in the establishment of two companies:
generating company called Open Joint-Stock Company 'Bashenergoactiv' (JSC
Bashenergoactiv) which will obtain the shares of LLC 'Bashkir Generation
Company', LLC 'Bashkir Heat Distribution Grid', and LLC 'CCGT CHPP-5', and
power grid company called Joint Stock Company «Bashkirian Power Grid
Company» (JSC 'BPGC').
Simultaneously with the spin-off JSC Bashenergoactiv is to be merged with
Open Joint Stock Company 'INTER RAO UES' (JSC 'INTER RAO UES').
Subsequently ordinary and type A preference shares of JSC 'Bashenergoactiv'
are to be converted into additional shares of JSC 'INTER RAO UES' in
accordance with merger agreement of JSC 'Bashenergoactiv' to JSC 'INTER RAO
UES' and based on the decisions of general shareholders meetings of OJSC
'Bashkirenergo' and JSC 'INTER RAO UES'.
OUTLOOKS
It is expected that growing rates of electricity prices shall be materially
lower than in 2011. Readjustment of tariffs will start from July 1, 2012.
The Federal Tariff Service stipulated 6% growth of tariffs for population
(or 3% year average) and 15% for other consumers (or 7.5% year average).
The set KOM prices for the 2012 capacity being 4% lower than in this year
makes the management take even more cost cutting measures of the fixed
costs in order to maintain the generation business margins.
On December 30, 2012 the State Committee on tariffs of RB determined
long-term regulation characteristics and established tariffs 5-year ahead
for OJSC 'BSK' This will make it possible to forecast financial results
with high degree of reliability
OJSC BASHKIRENERGO AND SUBSIDARIES
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 31 DECEMBER 2011 (AUDITED)
IN MILLIONS OF RUSSIAN ROUBLES
^
31/12/ 31/12/
2011 2010
ASSETS
Non-current assets
Property, plant and equipment 52,213 47,675
Advances paid for acquisition of property, plant and
equipment 1,332 3,450
Inventories 156 183
Trade and other receivables 9 121
Other non-current assets 59 59
53,769 51,488
Current assets
Inventories 1,300 1,169
Trade and other receivables 3,531 2,658
Advances paid and prepaid expenses 270 427
Investments 2,006 42
Income tax prepaid 244 181
VAT recoverable and other taxes prepaid 960 1,272
Cash and cash equivalents 2,953 569
11,264 6,318
TOTAL ASSETS 65,033 57,806
EQUITY AND LIABILITIES
Capital and reserves
Share capital 1,093 1,093
Treasury shares (282) (282)
Retained earnings 54,902 49,023
Equity attributable to owners of the parent company 55,713 49,834
Non-controlling interests - 285
TOTAL EQUITY 55,713 50,119
Non-current liabilities
Loans and borrowings 2,265 -
Employee benefit obligations 625 584
Deferred tax liabilities 918 1,549
Other non-current liabilities 241 81
4,049 2,214
Current liabilities
Loans and borrowings 3 160
Trade and other payables 2,312 1,203
Advances received from customers 1,036 2,230
Accrued expenses and provisions 847 935
Income tax payable 29 108
Other taxes payable 1,044 837
5,271 5,473
TOTAL LIABILITIES 9,320 7,687
TOTAL EQUITY AND LIABILITIES 65,033 57,806
°
OJSC BASHKIRENERGO AND SUBSIDARIES
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE THREE AND NINE MONTHS ENDED 31 DECEMBER 2011 (AUDITED)
IN MILLIONS OF RUSSIAN ROUBLES
^
Year ended
°
^
December 31, 2011 December 31, 2010
°
^
Revenue
Electricity and capacity 40,353 47,365
Heat energy 12,900 12,280
Other revenue 3,008 3,207
56,261 62,852
Operating expenses
(26,8 (23,9
Fuel 77) 94)
(8,73 (8,37
Staff costs 7) 8)
(3,46 (3,48
Depreciation 1) 7)
(3,30 (15,7
Purchase of electricity 4) 77)
Compensation to quarantining supplier for losses caused (2,67
by transmission of electricity 5) -
(2,43 (2,95
Repair and maintenance 1) 4)
(1,03
Change in provision for doubtful debts 6) (40)
(1,69
Materials and spare parts (883) 7)
Charity (687) (681)
Water usage (513) (514)
Taxes, other than income tax (479) (492)
Rent (151) (132)
Change in provision for tax and legal contingencies 203 362
Loss on disposal of property, plant and equipment (11) (132)
Other operating expenses (833) (916)
(51,8 (58,8
75) 32)
Operating profit 4,386 4,020
Finance income 112 -
Finance cost (51) (39)
Profit before income tax 4,447 3,981
(1,03 (1,26
Income tax 8) 2)
Profit from continuing operations 3,409 2,719
DISCOUNTED OPERATIONS
Profit from discontinued operations 4,540 72
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 7,949 2,791
Attributable to:
Owners of the parent company 7,949 2,761
Non-controlling interests - 30
7,949 2,791
EARNINGS PER SHARE FROM CONTINUING AND DISCONTINUED
OPERATIONS
Basic and diluted earnings per share (in Roubles) 7.32 2.57
EARNINGS PER SHARE FROM CONTINUING OPERATIONS
Basic and diluted earnings per share (in Roubles) 3.18 2.49
°
OJSC BASHKIRENERGO AND SUBSIDARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2011 (AUDITED)
IN MILLIONS OF RUSSIAN ROUBLES
^
Year ended
December Year ended
December
31, 2011 31, 2010
OPERATING ACTIVITIES
Profit before income tax 10,131 4,077
Adjustments for:
Depreciation 3,465 3,497
Change in provision for tax and
legal contingencies (203) (363)
Change in provision for unused
vacations and bonuses (126) 371
Income on disposal of property,
plant and equipment 11 132
Change in allowance for doubtful
receivables 1,337 40
Income from the disposal of a
subsidiary (5,445) -
Finance income (112) -
Finance losses 51 39
Other adjustments 122 (50)
Operating cash flow before
movements in working capital 9,231 7,743
Change in inventories (303) 347
Change in trade and other
receivables (2,625) (246)
Change in advances paid and prepaid
expenses (98) 58
Change in taxes receivable, other
than income tax 118 (139)
Change in trade and other payables 2,225 (590)
Change in advances received from
customers (508) (295)
Change in taxes payable, other than
income tax 271 143
Net cash provided by operations 8,311 7,021
Income tax paid (3,177) (1,130)
Interest paid (98) (74)
Net cash generated from operating
activities 5,036 5,817
INVESTING ACTIVITIES
Purchase of property, plant and
equipment (6,244) (3,289)
Proceeds from disposal of property,
plant and equipment 337 246
Net cash proceeds from the disposal
of a subsidiary 5,246 -
Disposal of Special Purpose
Entities (158) -
Purchase of investments (6,613) (457)
Proceeds from disposal of
investments 4,632 511
Interest on deposits 112 -
Net cash used in investing
activities (2,688) (2,989)
FINANCING ACTIVITIES
Dividends paid (2,066) (1,237)
Repurchase of ordinary shares - (282)
Proceeds from loans and borrowings 7,336 15,665
Principal repayments on loans and
borrowings (5,234) (17,003)
Net cash received from (used in)
financing activities 36 (2,857)
Net increase/(decrease) in cash and
cash equivalents 2,384 (29)
Cash and cash equivalents at
beginning of the period 569 598
Cash and cash equivalents at end
of the period 2,953 569
°
OJSC 'Bashkirenergo' - is a major regional utility company in Russia,
ranked 5 by installed electric capacity and 7 by installed heat capacity
among the Russian territorial generating companies. By the amount of heat
output OJSC 'Bashkirenergo' is among the 10 major heat producing companies
in the world. OJSC 'Bashkirenergo has a dominating position at the
electricity and heat market of the Republic of Bashkortostan, which is one
of the top-ten developed regions of Russia. The OJSC 'Bashkirenergo' owns
companies which produce electricity and heat, conduct their transmission to
consumers. The Installed electric capacity is 4,295 MW, the installed heat
capacity is 13,141 Gcal/h.
Contacts :
^
Head of Corporate Communications OJSC 'Bashkirenergo'
Luiza Lesnaya
Tel: + 7 (347) 269-42-28
+ 7 (985) 160-97-76
lesnaya@bashkirenergo.ru
°
Statements contained in this press release may contain forward-looking
information that reflects management's current view and estimates of future
economic circumstances, industry conditions, company performance, and
financial results. Any statements, expectations, capabilities, plans and
assumptions contained in this press release that do not describe historical
facts such as statements regarding the declaration or payment of dividends,
the direction of future operations, the implementation of principal
operating and financing strategies and capital expenditure plans, the
factors or trends affecting financial condition, liquidity or results of
operations are forward-looking statements and involve a number of risks and
uncertainties. There is no guarantee that these results will actually
occur. The statements are based on many assumptions and factors, including
general economic and market conditions, industry conditions and operating
factors. Any changes in such assumptions or factors could cause actual
results to differ materially from current expectations.
End of Corporate News
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Language: English
Company: OJSC Bashkirenergo
Kommsomolskaya st,126
450096 Ufa
Russia
Phone: + 7 (347) 269-43-59
E-mail: secr@iap.bashkirenergo.ru
Internet: www.bashkirenergo.ru
ISIN: RU0009044242
End of News EquityStory.RS, LLC News-Service
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166059 24.04.2012