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8 800 220-0-220 Contact CenterJSC “MOESK” publishes 1H 2012 IFRS financial results
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15.10.2012
JSC “MOESK” publishes 1H 2012 IFRS financial results
Moscow, October 15th, 2012 – JSC “MOESK” (ticker on MICEX-RTS: MSRS, Bloomberg code: MSRS RX Equity) publishes the Interim Condensed Financial Information for the six months ended 30 June 2012 (unaudited), prepared in accordance with International Financial Reporting Standards.
Key financial results for the first half of 2012:
| Indicators | June 30, 2012 | June 30, 2011 | Change |
| Revenue, mln rub, including: | 57,134 | 62,317 | - 8.3 % |
- from electricity transmission, mln rub. | 48,680 | 54,733 | - 11.1 % |
- from technological coection, mln rub. | 7,514 | 6,925 | + 8.5 % |
| OPEX, mln rub. including: | 45,859 | 49,697 | - 7.7 % |
- from electricity transmission, mln rub. | 21,666 | 26,926 | - 19.5 % |
- persoel costs, mln rub. | 7,296 | 7,599 | - 4 % |
- depreciation and amortization, mln rub. | 9,814 | 8,014 | + 22. 5 % |
| Operating profit, mln rub. | 11,864 | 13,182 | - 10 % |
| Operating margin, % | 21 | 21 | - |
| EBITDA , mln rub. | 21,678 | 21,196 | + 2. 2 % |
| EBITDA1 margin, % | 38 | 34 | + 4 p.p. |
| Net profit, mln rub. | 8,653 | 9,385 | - 7.8 % |
| Net profit margin, % | 15 | 15 | - |
| EPS, rub. | 0,1786 | 0,1925 | -7.2 % |
| Net decrease in cash and cash e
uivalents, mln rub.
| - 2,061 | - 1,594 | -22. 7 % |
8% revenue decrease is caused by the partial transfer of Moscow “Joint Payment” operator function to JSC “United Utility Company” (OEK).
Operating costs is mainly caused by the change in electricity transmission payment scheme inside Moscow. As the result distribution grid companies service costs fell by 26 % and accounted to 23 % of all operational costs in comparison with 30 % as of 1H 2011. In addition there was a decrease in loss compensation costs (due to loss volume decrease as well as effective unregulated price) as well as in repair services and persogel costs (due to the absence in 2012 of extra works on repairing the damage caused by the “Freezing rain”). Services of JSC “FGC UES” (uncontrollable costs), other expenses and depreciation and amortization are worth mentioning among those costs that showed growth. Other expenses increased due to rise in costs associated with land and real-estate registration (re-registration) as well as increased costs for the services of subcontractors, engaged in JSC “MOESK” subsidiary JSC “MKSM” principal activities. Depreciation and amortization growth is caused by a significant increase in commissioning and modernization of fixed assets at the end of 2011.
Operating profit decreased by 10 % due to depreciation and amortization growth by 22. 5 % and no change in tariffs.
Net profit decreased less significantly (- 7.8%) due to a greater growth of financial earnings rather than financial expenses and the reduction of income tax expense on profit.
In addition, it should be noted that the profitability ratios for the past year show no negative changes.
Consolidated balance sheet overview:
| Indicators |
June 30, 2012
mln rub.
|
June 30, 2011
mln rub.
| Change,% |
| Total assets, including: | 252,644 | 249,559 | 1.2 |
Non-current assets, including: | 226,331 | 220,776 | 2. 5 |
Property, plant and equipment | 210,681 | 205,734 | 2. 4 |
Current assets, including: | 26,314 | 28,782 | - 8.6 |
Trade and other receivables | 19,009 | 22,102 | -14 |
Cash and cash e
| 1,884 | 3,945 | - 52. 2 |
| Total equity, including: | 130,298 | 122,913 | 6 |
Retained earnings | 87,581 | 79,494 | 9.7 |
| Non-current liabilities, including: | 82,727 | 71,577 | 15.6 |
Loans and borrowings | 40,294 | 39,967 | 0.8 |
Trade and other payables | 30,459 | 22,471 | 35.6 |
| Current liabilities, including: | 39,619 | 55,069 | - 28.1 |
Loans and borrowings | 3,689 | 6,509 | - 43.3 |
Trade and other payables | 33,796 | 47,458 | - 28.8 |
1H 2012 balance sheet total grew by 1.2 %.
A year-on-year increase of 2. 5 % or 5.6 bln rub. in non-current assets is driven by the growth in property, plant and eguipment which fall to share of 83 % of total assets. The reasons for current assets decrease of 8.6 % or 2. 5 bln rub. are the following: fall in cash and cash eguivalents of more than 2 bln rub. (- 52 %) as well as in trade and other receivables of 3.1 bln rub. (-14 %) along with rise in income tax receivables of 1.8 bln rub. (+ 400 %) and in inventories of 0.8 bln rub. (36 %). Inventory increase is traditionally triggered by preparations for automn-winter season. Rise in income tax receivables is the result of re-calculation of income tax and submitting of adjusted declarations for the past tax periodes. Trade receivable reduction is linked with seasonal factor in JSC “MOESK” activities as well as changes in the electricity transmission payment scheme inside Moscow and partial transfer of “Joint Tariff” to JSC “United Utility Company” (OEK) which led to decrease in receivables charged.
Equity accrued due to retained earning change by 9.7 % or 7.7 bln rub.
Considerable rise in long-term liabilities is mainly driven by trade and other payables change of 8 bln rub. or 35.6 % which accounts to 37 % of total long-term liabilities. The growth in the account is obtained due to rise in long-term advance grid cogection contractual payments. Moreover there is a positive change of 2. 9 bln rub. or 37 % in deferred tax liabilities which is linked with income tax re-calculation and exemptions.
On the contrary short-term liabilities fell by 28 %. That was affected by contraction in the most weghty accounts: trade and other payables (-28.8 % or 13.7 bln rub.) and loans and borrowings (- 43 % or 2. 8 bln rub.). Trade payable decrease to a greater extent is attributable to reduction in charges of electricity supplyers due to partial transfer of “Joint Tariff” to JSC “United Utility Company” (OEK) as well as redemption of debt to construction organizations and facility suppliers.
Reference information: 1H 2012 operational results:
| Indicator | 30.06.2012 | 30.06.2011 | Change |
| Electricity productive supply (own), mln kWh | 39,431 | 37,735 | + 4.5 % |
| Losses, % | 9.54 | 10.79 | - 1.25 p.p. |
MOESK Group Interim Condensed Financial Information for the six months ended 30 June 2012 (unaudited) is available on the web-site of the Company: