3.2.7 Key IFRS metrics
The key portion of the Group’s revenues comes from electricity transmission. Changes of the revenues depend on approved tariff rates and volume of electricity transmitted during the period. The Group also has revenues from connection and other revenues. FY2022financial year 2022 revenues totaled RUBruble 102,984 million (+RUBruble 6,470 million or 6.7%), incl:
- A RUBruble 3,940 million increase of revenues from electricity transmission is affected by grown transmission rates and 2022 net supply;
- A RUBruble 659 million increase of revenues from connection is affected by various groups of applicants and structure of concluded contracts;
- A RUBruble 947 million increase of revenues from electricity sales is affected by grown tariffs and electricity consumption;
- A RUBruble 924 million increase of other revenues is affected by the progress in activities and conclusion of additional contracts.
FY2022financial year 2022 operating expenses totaled RUBruble 97,606 million (+RUBruble 6,150 million YoYyear on year). The key growth factors are increased expenses on loss compensation, on purchased electricity for sale, depreciation and amortization and personnel. We recognized a RUBruble 793 million gain in Expected credit loss provision in 2022 as a result of recovery of bad debt reserve due to debt repayment by the debtor.
Net other income in 2022 totaled RUBruble 1,060 million (-RUBruble 87 million). Other operating revenues include gains from uncontracted consumption, gains from fines, penalties and forfeits, writing-off of payables and insurance indemnity.
FY2022financial year 2022 net income of the Group totaled RUBruble 4,276 million (+RUBruble 436 million YoYyear on year), the increase affected mainly by recognition of impairment loss related to PP&E and right-of-use assets in 2021.
FY2022financial year 2022 EBITDAearnings before interest, taxes, depreciation and amortization totaled RUBruble 15,933 million (-RUBruble 376 million YoYyear on year). The largest influence on the decrease of the indicator was due to grown revenues in 2021 as a result of recovery of expected credit loss provision.
| RUBruble million | 2020 | 2021 | 2022 |
|---|---|---|---|
| Revenues, incl.: | 88,621 | 96,514 | 102,984 |
| — revenues from electricity transmission | 67,966 | 73,648 | 77,588 |
| — revenues from connection | 1,292 | 1,240 | 1,899 |
| — revenues from electricity sales | 18,912 | 20,955 | 21,902 |
| — other revenues | 451 | 671 | 1,595 |
| Operating expenses | 86,285 | 91,456 | 97,606 |
| Expected credit loss provision | 1,454 | -1,504 | -793 |
| Impairment loss related to PP&E and right-of-use assets | 0 | 2,141 | 0 |
| Net other income | 870 | 1,147 | 1,060 |
| Operating result | 1,752 | 5,568 | 7,231 |
| Balance of financial income and expenses | -963 | -596 | -1,391 |
| Profit before tax | 789 | 4,972 | 5,840 |
| Income tax | 167 | 1,132 | 1,564 |
| Profit for the period | 622 | 3,840 | 4,276 |
| EBITDAearnings before interest, taxes, depreciation and amortization * | 9,586 | 16,309 | 15,933 |
| EBITDAearnings before interest, taxes, depreciation and amortization margin,% | 10.8% | 16.9% | 15.5% |
| Net debt | 20,597 | 18,633 | 19,942 |
| Indicators* | MU | 2020 | 2021 | 2022 | 2022/2021, % |
|---|---|---|---|---|---|
| Net Debt / EBITDAearnings before interest, taxes, depreciation and amortization | 2.15 | 1.14 | 1.25 | 10% | |
| Current liquidity ratio | 0.58 | 0.49 | 0.48 | -2% | |
| Financial leverage | 0.96 | 0.92 | 1.05 | 14% | |
| Share of LT loans | 0.87 | 0.60 | 0.58 | -3% | |
| Net cash flow | RUBruble million | -2,008 | 2,116 | 1,661 | -22% |
Net / EBITDAearnings before interest, taxes, depreciation and amortization as of 31.12.2022 is higher than Net / EBITDAearnings before interest, taxes, depreciation and amortization as of 31.12.2021 due to debt increase. Current liquidity ratio as of 31.12.2022 is slightly lower than Current liquidity ratio as of 31.12.2021. Financial leverage as of 31.12.2022 is higher than Financial leverage as of 31.12.2021 due to grown ST liabilities. Share of LT loans as of 31.12.2022 is slightly lower than share of LT loans as of 31.12.2021. Net cash flow in 2022 is positive. Net cash flow in 2022 is lower than Net cash flow in 2021, affected by interest paid, grown due to the increased key rate of the Bank of Russia, and increased debt portfolio during 1H2022 as well as grown income tax as a result of increased revenues, mainly from electricity transmission.