TGC-1 Group Profit for 2018FY Increased by 31.5%

14.03.2019

TGC-1 releases audited consolidated Financial Statements for the 12 months period, ended 31 December, 2018 prepared in accordance with International Financial Reporting Standards (IFRS).

Consolidated Statement of Comprehensive Income Highlights (RUB mln)

2017*

2018

Revenue

87,641

92,455

Operating Expenses

(73,907)

(77,390)

Operating Profit

11,989

12,948

EBITDA**

20,444

20,926

Profit for the Year

7,927

10,421

* 2017FY results restated dew to transfer of items “Government subsidy” and “Income from leased property” from “Other operating income” item to “Revenue”.

** EBITDA is calculated as Operating profit + Depreciation of PP&E + Amortization of intangible assets and investment property.

Consolidated TGC-1 Group revenue for 2018FY increased by 5.5% year-on-year, up to RUB 92,455 mln. The revenue dynamics were influenced by growing revenue from electricity and capacity, as well as from heat supply.

Group’s operating expenses grew by 4.7% year-on-year, up to RUB 77,390 mln. Variable costs grew by 7.9% up to RUB 48,813 mln, mainly on the account of increased fuel costs on the back of growing production. Variable costs grew by 1.9%, to RUB 20,600 mln.

Hence, Group’s operating profit for 2018FY increased by 8.0% year-on-year totaling RUB 12,948 mln. EBITDA amounted to RUB 20,926 mln, up by 2.4% year-on-year.

Profit grew by 31.5% year-on-year, up to RUB 10,421 mln.

Full TGC-1 and subsidiaries 2018FY results under IFRS are available at the corporate website in the “Reports” section.

About

TGC-1 is the leading producer of electricity and heat in the North-West region of Russia. It operates 53 electric generating stations in four regions of Russia: St. Petersburg, Republic of Karelia, Leningrad Oblast, and Murmansk Oblast.

Installed electric capacity of the Company’s stations amounts to 6.95 GW and heating capacity of 13,75 thous. GCal/hr. Major shareholders are Gazprom Energoholding LLC (51.79 %) and Fortum Power and Heat Oy (29.45 %). Total headcount of the Company, including subsidiaries, totals circa 7 thousand.