Enel Russia continues to post strong results despite lower production in 9M 2016

Published on Tuesday, 1 November 2016

  • EBITDA increase mainly driven by lower operational costs.


“Enel Russia’s financials further recovered during the third quarter of 2016 as a stronger rouble helped to reduce our fuel costs and net financial expenses. We are posting results above the targets previously disclosed to the financial market, supported by tight cost control in line with our commitments to investors. Looking ahead, we expect to maintain this positive momentum through to the end of the year and to be able to pay a dividend on full year’s profits.”

– Carlo Palasciano Villamagna, General Director of Enel Russia

Moscow, November 1st, 2016 — PJSC Enel Russia has published its operating results and unaudited IFRS financial results for the first nine months of 2016.

Revenues slightly increased, mainly attributable to:

  • higher free market electricity prices as a result of maintenance works at nuclear facilities in the Central region and increase of electricity consumption in the Southern region,
  • higher DPM tariff thanks to the increased yield from government bonds (one of the components of DPM tariff calculation),
  • slightly higher regulated heat and power sales due to tariffs increase.


This increase more than offset:

  • lower power and capacity revenues from CCGT units caused by Nevinnomysskaya’s CCGT unit outage at the beginning of 2016,
  • decreased power consumption in the Urals brought about by higher average temperatures in the area,
  • lower equipment utilisation by the System Operator in the Southern region due to higher hydro output.


EBITDA increased thanks to:

  • improved generation margin and fixed costs growth well below inflation,
  • lower fuel costs, mainly attributable to lower coal prices and to lower production of CCGTs.


On a like-for-like basis, i.e. net of 800 million RUB of insurance compensation received at the beginning of 20153, EBITDA would have increased by a solid 41.3% on the first nine months of 2015.

EBIT grew significantly due to the EBITDA increase and lower depreciation and amortisation resulting from the significant asset impairments carried out during the second half of 2015.
Net income reflected the EBIT increase, additionally supported by lower net financial charges that were mainly due to better results on derivatives following improved financial market conditions.
Net debt at the end of the period decreased on the figure posted as of December 31st, 2015, thanks to solid operating cash flow and book revaluation of euro-denominated debt due to the appreciation of the rouble.

Net power output reduction is largely attributable to:

  • outage at Nevinnomysskaya’s CCGT unit during the first three months of 2016,
  • decrease of Nevinnomysskaya conventional output by 8.6% mainly due to higher hydro output in the Southern region,
  • the 5% drop in output at Sredneuralskaya, due to lower power consumption attributable to higher average temperatures in the Urals, as well as planned maintenance at its CCGT facility held in the second quarter of 2016,
  • the 4.9% decrease of Reftinskaya’s output, mainly due to increased modernisation and maintenance works.


The reduction was partially offset by an 11.8% increase in Konakovskaya’s output, thanks to maintenance works carried out at nuclear facilities in the Central region.

Power sales down due to the previously mentioned drop in net power output.
Heat sales below the figure posted in the first nine months of 2015 due to lower consumption, mainly attributable to higher average temperatures.




An Enel Group subsidiary, PJSC Enel Russia operates the following power plants: Konakovskaya GRES, Nevinnomysskaya GRES, Sredneuralskaya GRES and Reftinskaya GRES. The company’s total gross installed electrical capacity is 9,428.7 MW (equivalent to 8,878.4 MW net installed capacity) and thermal capacity is 2.382 Gcal/h. PJSC Enel Russia’s authorised capital is 35,371,898,370 roubles, which is divided into ordinary shares with a par value of 1 rouble. The Enel Investment Holding B.V. share in the company’s authorised capital is 56.43%, PFR Partners Fund I Limited’s share is 19.03%, Prosperity Capital Management Limited’s share is 8.23%, VTB Bank’s share is 3.87% and other minority shareholders’ share is 12.44%. PJSC Enel Russia shares are listed in Level 1 MICEX quotation list. The company was established in Yekaterinburg on October 27th, 2004 as OJSC OGK-5. On July 7th, 2009 by the resolution of Annual General Shareholders’ Meeting the company was renamed OJSC Enel OGK-5 and on August 8th, 2014 the Federal Tax Service registered the new version of the company’s charter with the name OJSC Enel Russia. On June 25th, 2015 the company changed its legal type and was renamed PJSC Enel Russia.