Results of financial and economic activities
Kirill Iordanidi Deputy General Director for Economics and FinanceAccording to the year‑end results, the Company managed to maintain an upward trend in net profit. The financial result for 2024 amounted to RUB 10,877.6 million (up RUB 4,711.1 million year‑on‑year). The main drivers were higher revenue from grid connection and electricity transmission, as well as growth in other income.
The Company’s management took exhaustive measures to contain cost escalation, optimise interest expenses, improve the efficiency of the procurement management system, reduce the unit cost of energy equipment operation, reduce grid losses and enhance energy efficiency.
In 2024, the Company did not receive any state support funds (subsidies).
Revenue from services (total) for the reporting period amounted to RUB 88,071.6 million, up RUB 13,514.1 million year‑on‑year (RUB 74,557.5 million), including:
- Revenue from electricity transmission services totalled RUB 80,126.4 million, up RUB 8,919.2 million year‑on‑year (RUB 71,207.1 million). The increase can be attributed to a 7% rise in the volume of electricity transmission services provided, amounting to 1,567.9 million kWh, as well as the impact of electricity transmission tariffs for 2024 approved by the KKSTRD.
- Revenue from grid connection was RUB 6,661.9 million, up RUB 4,224.0 million year‑on‑year (RUB 2,437.9 million). This is related to fulfilling grid connection contracts with major applicants, including Upravtodor Taman (revenue of RUB 2,227 million), Stroizakazchik, a state budgetary institution of the Republic of Adygea (revenue of RUB 693 million), Bastion LLC (revenue of RUB 249 million), etc.
- Revenue from other activities amounted to RUB 1,283.3 million, up RUB 370.8 million year‑on‑year (RUB 912.4 million). This mainly stems from the conclusion of a lease agreement for the power grid assets of Port 220 kV substation with the Taman‑Port 220 kV OTL (first circuit) and the Taman‑Port 220 kV OTL (second circuit).
The cost of production (including administrative expenses) for 2024 amounted to RUB 69,863.9 million, up RUB 7,746.4 million year‑on‑year (RUB 62,117.5 million). The growth was driven by an increased cost of purchased electricity to compensate for losses, transmission services provided by Rosseti PJSC (as a UNPG management organisation), services provided by distribution grid companies, maintenance and repair services, as well as an increase in depreciation and amortisation, other material expenses and personnel expenses.
Profit before tax amounted to RUB 15,260.3 million, up RUB 6,712.9 million year‑on‑year.
The Company’s financial result (profit) for 2024 exceeded last year’s figure and totalled RUB 10,877.6 million.
The key drivers behind the financial results were as follows:
Increase in revenue by RUB 13,514.1 million
Year‑on‑year increase in the cost of production including administrative expenses by RUB 7,746.4 million
Year‑on‑year improvement in other income and expenses from profit by RUB 945.2 million
Year‑on‑year increase in income tax by RUB 2,001.8 million
| Sl.No. | Indicator | 2022 | 2023 | 2024 | Δ 2024/2023 (%) |
|---|---|---|---|---|---|
| Indicators from the Company’s RAS accounting (financial) statementsThe following data were used to calculate the indicators: • for 2022 — Profit and loss statement for January — December 2023 (in 2022 column) • for 2023 — Profit and loss statement for January — December 2023 (in 2023 column) • for 2024 — Profit and loss statement for January — December 2024 (in 2024 column) | |||||
| 1 | Revenue from sales of products (services) | 63,739 | 74,557 | 88,072 | +18.1 |
| Including: | |||||
| 1.1 |
| 61,453 | 71,207 | 80,126 | +12.5 |
| 1.2 |
| 1,282 | 2,438 | 6,662 | +2x |
| 1.3 |
| 0 | 0 | 0 | 0 |
| 1.4 |
| 1,004 | 912 | 1,283 | +40.6 |
| 2 | Cost of products (services) | –52,991 | –62,057 | −69,794 | +12.5 |
| 3 | Gross profit | 10,748 | 12,501 | 18,278 | +46.2 |
| 4 | Administrative expenses | −163 | −61 | −70 | +14.9 |
| 5 | Selling and marketing expenses | 0 | 0 | 0 | 0 |
| 6 | Profit (loss) from sales | 10,585 | 12,440 | 18,208 | +46.4 |
| 7 | Interest receivable | 109 | 439 | 2,574 | +5x |
| 8 | Interest payable | –2,663 | –2,346 | −4,158 | +77.3 |
| 9 | Income from shareholdings | 0 | 4 | 8 | +91.6 |
| 10 | Other income, total | 3,558 | 2,960 | 3,245 | +9.6 |
| 11 | Other expenses, total | –4,409 | –4,950 | −4,616 | −6.8 |
| 12 | Profit (loss) before tax | 7,180 | 8,547 | 15,260 | +78.5 |
| 13 | Income tax and other charges | –1,936 | –2,381 | −4,383 | +84.1 |
| 14 | Financial result | 5,244 | 6,167 | 10,878 | +76.4 |
| 15 | EBITDAEBITDA was calculated as follows: pre‑tax profit before interest expense, depreciation, amortisation and net charge/(reversal of) impairment loss on fixed assets and rights‑of‑use assets. | 16,141 | 17,574 | 26,688 | +51.9 |
| Indicators calculated on the basis of the Company’s IFRS consolidated financial statements | |||||
| 16 | Net debt/EBITDA (units) | 1.28 | 0.54 | 0.32 | −40.7 |
| 17 | Current liquidity ratio (units) | 0.57 | 0.88 | 0.65 | −26.1 |
| 18 | Financial leverage (units) The following data were used to calculate the indicator: • For 2022 — Consolidated statement of cash flows for 2023 (For the year ended 31.12.2022 column). • For 2023 — Consolidated statement of cash flows for 2024 (For the year ended 31.12.2023 column). • For 2024 — Consolidated statement of cash flows for 2024 (For the year ended 31.12.2024 column). | 1.16 | 1.20 | 1.17 | −2.5 |
| Indicators from the RAS accounting financial) statements of the CompanyThe following data were used to calculate the indicators: • for 2022 — Profit and loss statement for January — December 2023 (in 2022 column) • for 2023 — Profit and loss statement for January — December 2023 (in 2023 column) • for 2024 — Profit and loss statement for January — December 2024 (in 2024 column) | |||||
| 19 | Share of non‑current borrowings (%) | 77.57 | 73.51 | 40.91 | –32.6 p.p. |
| 20 | Net cash flow (RUB million) | 4,109 | 8,544 | 3,409 | –2.5x |
The year‑on‑year decrease in the Net Debt/EBITDA ratio for 2024 was driven by higher EBITDA and lower net debt.
The lower current liquidity ratio in 2024 as compared with 2023 is caused by an increase in current liabilities, including the transfer from long‑term to short‑term debt on loans maturing in less than 12 months under the terms of the agreement.
The year‑on‑year decrease in financial leverage is spurred by the outstripping growth rate of long‑term liabilities over the growth rate of equity.
The decrease in the share of long‑term borrowings in 2024 is attributed to partial conversion of debt from long‑term to short‑term, with a maturity of less than 12 months as at 31 December 2024.
The lower net cash flow in 2024 as compared to 2023 is explained by a decrease in net cash generated from operating activities, as well as higher purchases of fixed assets and intangible assets.