Enel Russia Q1 2020 results April 28, 2020
COVID-19 Business continuity management and risks assessment
COVID-19 Business continuity management: our people Remote working trends % of employees on remote working Remote working: 909 employees +4x of which: 1 HQ 291 / 100% Power plants 618 / 30% 0 37% 0 0 9% 0 Crisis management: Task Force Russia set up in late February - Pre COVID19 Post COVID19 2020 1 2 outbreak outbreak # of simultaneous VPN accesses (k) Personnel protection: distancing , monitoring of health conditions, +4x extension of PPE³ use, compartmentation of common areas, 1 optimization of work scheduling, every day disinfection of premises 0,8 1 0,2 External suppliers: request to adopt same protection measures activated by Enel Russia - Pre COVID19 Post COVID19 outbreak outbreak 100% IT portfolio core applications on cloud provide full accessibility from everywhere and scalability 3 1. As of March 1 st , 2020; 2. As of March 31 st , 2020 3. Personal protective equipment
COVID-19 Business continuity management: our assets ✓ Max. possible remote monitoring of thermal generation, personnel at the renewable construction sites is conducting the construction works in full ✓ Optimization of power plants operation schemes and limitation , rescheduling of maintenance activities guaranteeing business continuity ✓ Access control system is installed at the Azov and Kola construction sites ✓ The foundations works, internal road laying and the T-lines installation are held at the construction sites according to the schedule ✓ Equipment supply for the wind farms is on schedule 4
COVID-19 Risk assessment: strategic deployment not affected, ample liquidity available Macroeconomic Risks Business Risks Financial Risks Prices: fixed capacity prices GDP & Power demand: Financing for the first two in the plan period; limited wind projects secure, ✓ Limited correlation of GDP volatility of power prices remote commissioning of the and power consumption third project [2024] Payment collection: in line ✓ 75% of 2020 gross margin with historical levels Interest rate is fixed for contracted through capacity general corporate debt component protects Thermal modernization: main earnings volatility equipment for the closest Limited re-financing needs FX: project purchased in 2019 in the plan period ✓ Revenues & debt 100% Renewables: supply chain Liquidity: 84bn RUB¹ nominated in RUB risks can not be excluded available substantially cover ✓ 8% of 2020 fixed costs debt to mature by 2022 Cost efficiencies : benefits nominated in EUR from large scale remote ✓ Capex after hedging is working and restriction in >90% nominated in RUB travels 5 1. Includes available credit facilities (not considering commercial papers program) and cash
Q1 2020 results
Financial highlights (RUB mn) Δ YoY Q1 2020 Q1 2019 12,052 19,101 -37% Revenue 13,019 3,326 5,296 -37% EBITDA (27) Net income 1,456 3,000 -51% 4,171¹ 8,215 +97% Net debt 20,907 Net debt/EBITDA² 1.1x 0.6x 1.0x -0.4x Herein after – unaudited financial results under IFRS 7 1. As of December 31, 2019 2. Net debt at the end of the period divided by 12 months rolling EBITDA
Portfolio repositioning in terms of technology following coal power plant disposal Net power production by technology (TWh) Power sales (TWh) -48% -49% 9.3 10.7 2.2 4.5 4.8 5.6 1.1 1.5 1.7 8.5 4.4 3.2 3.1 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Free market Regulated market Oil&Gas CCGT Coal Equipment 89% 91% Utilization on net 48% 42% availability electric capacity 8
Increased prices on higher share of CCGT was offset by growing cost of sales due to technology change Average unitary selling price (RUB/MWh) ¹ -3% without +9% RGRES in Q1 2019 Average unitary margin (RUB/MWh) 1,269 1,161 -41% -30% without RGRES in Q1 2019 Q1 2019 Q1 2020 Average unitary cost of sales (RUB/MWh)² 218 128 +1% without +21% RGRES in Q1 2019 Q1 2019 Q1 2020 1,141 943 Q1 2019 Q1 2020 9 1. Including regulated power sales, day ahead market and balancing market sales 2. Including fuel cost and energy purchases
Lower revenues and costs following the change in assets perimeter… Variable costs (RUB bn) -37% 11.1 Operating revenues (RUB bn) 1.4 Purchased 7.0 power -37% 0.9 Fuel 19.1 9.7 6.1 1.3 5.4 Heat and other Q1 2019 Q1 2020 12.1 1.1 Fixed costs (RUB bn) Capacity 4.0 -36% Electricity 2.7 12.4 Overhead 0.3 7.0 1.8 Personnel 1.1 0.2 Q1 2019 Q1 2020 0.8 O&M not 0.7 manageable 0.5 O&M manageable 0.6 10 0.3 Q1 2019 Q1 2020
…that also affected EBITDA dynamics EBITDA evolution (RUB bn) -37% (2,958) 75 913 5,296 3,326 Q1 2019 Gross margin Fixed costs Other items Q1 2020 11
Net income down on EBITDA and revaluation of the part of payables on weaker RUB Δ YoY Q1 2020 Q1 2019 3,326 5,296 EBITDA (all - RUB mn) 15,318 17,225 -37% (939) (1,224) D&A and impairment (4,689) -23% EBIT 2,387 4,072 -41% Net financial expenses (555) +85% (299) EBT 1,832 3,773 -51% Income tax (charge) / benefit (376) (773) -51% Net income 7,699 -51% 1,456 3,000 12
Net debt up mainly on investments made and working capital deterioration Net debt evolution (RUB mn) +97% (423) 2,541 321 4,930 (3,325) 8,215 4,171 ¹ ∆Working capital 31Dec19 Cash flow from Income tax Capex Net financial 31Mar20 operations charges and Other 13 1. Includes increase/(decrease) in taxes payable, other than income tax. Over 1Q 2020 the Company paid 4.1bn RUB of VAT accrued in 2019 for Reftinskaya sale
Debt profile and liquidity position Gross debt profile Total credit facilities: utilised & available (RUB bn) As of 31Mar19 As of 31Mar20 10% - 13% 27% 21% 132.2 132.2 25bn RUB 19bn RUB 69% 60% Long-term Corporate loans (RUB) Corporate loans (EUR) Short-term 99% 99% Project financing (RUB) Commercial papers (RUB) Q1 2020 Q1 2019 1% 1% Weight Weight AVG cost AVG cost 31Dec19 31Mar20 31/03/20 31/03/19 100% % utilised 14% RUB 79% 8.5% 12% 8.3% EUR 21% n/a 0% 1.6% 14
Contact us Channels Website Mobile App Enelrussia.ru Enel Investors Ekaterina Dubovitskaya Follow us Investor Relations Email ekaterina.dubovitskaya@enel.com Phone +7 495 539 31 31 ext. 7746 15
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