24 March 2015, Ufa. Bashkir Power Grid Company (BPGC), a subsidiary of Sistema JSFC, the diversified holding company in Russia and the CIS, is announcing its audited consolidated financial results prepared in accordance with International Financial Reporting Standards (IFRS) for the full year and for the fourth quarter ended on 31 December 2014.
KEY FINANCIAL RESULTS FOR Q4 AND FULL YEAR 2014:
- BPGC's revenue in 2014 grew by 4% YoY to RUB 14,061 mln, the Q4 revenue went up 2.9% YoY to RUB 3,952 mln, mainly as a results of increased power supply.
- BPGC's OIBDA in 2014 fell by 8.4% YoY, to RUB 5,083 mln, due to increased operating expenses and lower one-off gains as compared to 2013. The Q4 OIBDA amounted to RUB 1,117 mln, demonstrating a 21.7% decline YoY.
- The OIBDA margin totalled 36.1% in 2014 and 28.3% in Q4 2014.
- The net income in 2014 decreased by 12.4% to RUB 2,975 mln. The company's Q4 net income fell by 29% to RUB 600 mln.
KEY OPERATING RESULTS:
- Electric power consumption in 2014 increased by 3.19% YoY as a result of a raise in the number of new consumers and growth of Bashkortostan's gross regional product.
- In 2014, as a result of a successful new investment programme and acceleration of power connections, Bashkirenergo obtained 19,790 new consumers, 15.2% more than in 2013.
- Power losses in distribution gridswent up from 8.27% in 2013 to 8.46% in 2014 as a result of:
- growth of load losses in Bashkirenergo's grids due to increased power supply at tie-lines between Bashkirenergo and other power distributors (tie-line power flow);
- Bashkirenergo starting to operate electric grid systems earlier owned by territorial grid operators (OJSC Rosenergoatom Concern and LLC Teploelektroset) from 2H 2014 in addition to the grids already in operation.
Commenting on the company's results for the full 2014 year, BPGC's CEO Andrey Makarov said:
"In 2014, the BPGC Group achieved several positive operating results: Bashkirenergo's customer base grew by 17,790 consumers, which is a 15.2% increase from 2013. Power consumption increased accordingly. Aiming to enhance customer focus, we opened a customer service centre in Ufa to make interaction between consumers and ourselves still more convenient.
We also worked hard to perform comprehensive modernisation of Ufa's grid infrastructure using Smart Grid elements. We chose a pilot district and installed state-of-the-art equipment.
In 2014, we also started building four electrical substations vital to Bashkortostan's industrial development. This includes, most notably, innovative high-tech projects making the company more efficient. For instance, BPGC became one of the first five Russian power companies (among thousands) to implement the largest ERP projects using the 1C platform.
2014 also became a real aptitude test for Bashkortostan's power grid operators. A devastating hurricane that swept across the Republic's three Northwestern regions on 29 August damaged more than 30 transmission towers in 110 kV lines and more than 200 towers in 0.4-1.0 kV distribution grids, which caused the failure of several substations, leaving 84 communities without electric power. Thanks to non-stop work of grid workers power supply to the affected regions was restored in 36 hours, and the damaged power lines were repaired in 13 days."