6.2

The Company`s Financial Performance

Revenue

In 2014, JSC Tyumenenergo revenue totalled 52, 076 mln RUB that exceeded by 124 mln RUB or 0.2% the level of 2013.

The bulk of JSC Tyumenenergo revenue (98%) comes from electric energy distribution and transit in grid.

Revenue Profile, mln RUB

Revenue Profile, mln RUB

Changes in revenue for each category:

  • During 2014, revenue from electric energy distribution and transit amounted to 50, 895 mln RUB that exceeded by 257 mln RUB or 0.5% the level of 2013. Growth in the scope of electric energy distribution services is due to increased electric energy consumption in the region.
  • According to the results of 2014, revenue from network connection to JSC Tyumenenergo grids amounted to 871 mln RUB that was below the level of 2013 by 104 mln RUB or by 11. Decline in revenue from network connection was due to failure to comply with the terms and conditions of the contracts by a number of applicants, and due to mutually agreed changes in the timing of the connection. Because of fulfilment of the obligations under the network connection contracts, 1,408 MW was connected in 2014 that was 223 MW below the previous year figure.
  • Revenue from the side activities amounted to 310 mln RUB that was 29 mln RUB or 9% below the level of 2013.

Prime cost

In 2014, prime cost of JSC Tyumenenergo goods, work, and services sold totalled 45, 328 mln RUB that was 492 mln RUB or 1% below the level of 2013. Prime cost reduction in 2014 is mostly due to decrease in infrastructure payments and depreciation expenses.

Prime cost components dynamics, mln RUB

NO. Cost item 2012 2013 2014 Deviation of 2014 from 2013
Abs. %
1. Infrastructure costs: 21 538 24 353 23 191 -1 162 -5
1.1 Services of JSC FGC UES 14 275 15 425 15 460 35 -
1.2 Services of grid companies 4 160 4 381 5 279 898 20
1.3 Purchased electric energy for losses balancing 3 103 4 547 2 452 -2 095 -46
2. Company“s own costs: 13 224 14 060 14 897 837 6
2.1 Materials, energy for operational and business needs 821 1 186 1 196 10 1
2.2 Industrial work and services 2 842 1 885 1 864 -21 -1
2.3 Personnel costs 7 055 8 181 8 645 464 6
2.4 Other expenses 2 506 2 808 3 192 384 14
3 Depreciation 6 525 7 407 7 240 -167 -2
Total prime cost 41 287 45 820 45 328 -492 -1

Prime Cost 2014, mln RUB

Prime Cost <nobr>2014</nobr>, mln RUB

The main factors of the prime cost change:

  • Increase in costs of grid companies` services in 2014 was due to establishment of the necessary gross proceeds of these companies with an increase against 2013;
  • Reduction of expenses on purchase of electric energy in order to balance losses in JSC Tyumenenergo grids by 46% was caused by the Regional Energy Commission`s approval of the lower retail mark-up. Since 01 January 2014, the Tyumen region has first established single “boiler” tariffs for electric energy distribution services for the consumer group “population”, in this context, the retail mark-up for the consumer group “grid companies” does not include cross-subsidization rate;
  • Growth of personnel costs by 6% is associated with increase in the tariff rates and salaries in accordance with the Sectoral Wage Rate Agreement in the Electric Power Industry of the Russian Federation, and with the Collective Agreement of JSC Tyumenenergo;
  • Growth of costs under the item Other Expenses by 14% was mainly due to increase in the property tax (by 46%) because of revision of the tax rate from 0.4% to 0.7%..

Financial performance, mln RUB

NO. Name 2012 2013 2014 Deviation of 2014 from 2013
Abs. %
1. Revenue from sale of products (services), including: 47 069 51 952 52 076 124 -
1.1 From electric energy distribution 45 260 50 638 50 895 257 1
1.2 From network connection 1 231 975 871 -104 -11
1.3 From the side operations 578 339 310 -29 -9
2. Products (services) prime cost 41 287 45 820 45 328 -492 -1
3. Gross profit 5 782 6 132 6 748 616 10
4. Administrative costs - - - - -
5. Commercial costs - - - - -
6. Profit (loss) from sales 5 782 6 132 6 748 616 10
7. Interest receivable 204 301 457 156 52
8. Interest payable 541 537 1 -536 -100
9. Income from participation in other organizations 3 4 2 -2 -50
10. Other income, total 4 586 9 431 417 -9 014 -96
11. Other expenses, total 8 695 11 158 3 255 -7 903 -71
12. Profit (loss) before tax 1 339 4 173 4 368 195 5
13. Income tax and other payments 1 212 2 123 1 699 -424 -20
14. Net profit 127 2 050 2 669 619 30
15. EBITDA* 8 201 11 815 11 153 -662 -6

*EBITDA = Earnings before tax + Depreciation + Interest payable - Interest receivable

According to the results of 2014, JSC Tyumenenergo net profit totalled 2,669 mln RUB that exceeded by 619 mln RUB the level of 2013.

Growth of the Company`s net profit in 2014 was caused by reduction in infrastructure payments, depreciation and income tax.

In 2014, EBITDA totalled 11, 153 mln RUB that exceeded by 662 mln RUB or 6% the level of 2013. Reduction of this indicator in 2014 was due to change for income pertaining to interest receivable.