Yearly report 2011

Русская версия

Quick analysis of financial and operational activity

Revenue at Kubanenergo from sales of products, works and services (in total) was received in the volume of 28 708 million rubles, which was 4 172 million rubles more than the corresponding indicator from last year. Growth in revenue from sales of electricity transmission of 4 246 million rubles had the principal effect on the increase in revenue over the accounting period, including:

According to the results for 2011 revenue from technological connection services totalled 1 086 million rubles, having decreased in comparison with the previous year by 83 million rubles.

Actual losses according to the results for the accounting year totalled 1 861 billion rubles, have decreased in comparison with 2010 by 527 million rubles by increasing revenue from sales of products, works and services, as well as completing work to optimise expenditure within the Programme of actions for the financial recovery of Kubanenergo for 2010-2012 confirmed by the Board of Directors (Protocol of 28.10.2010 в„– 98/2010).

An increase in the volume of self-cost in 2011 compared to the 2010 level is accounted for by a growth in expenditure on the following:

Changes in other entries were insignificant.

For the financial recovery of Kubanenergo a policy to optimise production and commercial expenditures is being carried out, and planned work is in progress within the Programme for cost management. As a result of carrying out a range of pertinent actions the total economic effect for 2011 was achieved to the amount of 2084 million rubles, which was 199% comparatively to the level of the planned target.

The debt to equity ration indicator in 2011 decreased by 18.78% in comparison with 2010 as the result of an increase in equity capital at Kubanenergo.

The debt service coverage indicator at the end of the accounting year had decreased by 5.07%.

The receivables turnover ratio in 2011 decreased compared with the level of the previous year by 31.64% and totalled 9.85 times a year. This change occurred due to an increase in the total volume of accounts receivable compared to growth in revenue at the Company.

The level of overdue accounts payable for 2011 decreased by 7.04%.

The working capital ratio, which makes it possible to determine to what extent current assets cover current liabilities, as at the end of 2011 totalled 0.95.

The liquid ratio over the year showed a negative trend and totalled 0.85 in 2011.

The equity-assets ratio decreased in 2011 in comparison with the previous year and totalled 0.38.

The equity to debt ratio which shows the Company’s dependence on borrowed funds totalled 0.61 at 31 December 2011.

The lowering of tariffs on electricity transmission at the beginning of the accounting year led to a decrease in the requisite gross revenues and a deterioration in the financial and economic standing overall for the Company in 2011.

Changes in basic financial and economic indicators at Kubanenergo 2009-2011

Indicator Indicator Unit of measurement 2009 2010 2011
Total revenue, including thousands of rubles 19 947 511 24 535 530 28 707 841
from electricity transmission thousands of rubles 17 609 651 23 289 219 27 535 504
from technological connection thousands of rubles 2 270 744 1 168 831 1 085 776
Profit on sales thousands of rubles 1 097 908 -1 309 118 -922 322
Net profit thousands of rubles -3 757 806 -2 389 034 -1 861 782
Net assets thousands of rubles 6 815 721 11 927 366 13 791 604
Short term obligations thousands of rubles 13 281 708 11 099 920 10 999 480
Long term obligations thousands of rubles 10 529 280 10 824 069 11 769 978
Capital investment thousands of rubles 3 510 838 2 498 470 4 542 730
Net asset value per share rubles/share 364.6233 151.3785 141.5090
Earnings per share rubles/share -210.2923 -30.9031 -19.1029
Dividend per share rubles/share - - -
Capitalisation of the Company at year end millions of rubles 2 335,54 13 864,28 6 855,40

Changes in indicators of financial results of the Company 2009-2011 in millions of rubles

Indicator 2009 2010 2011
Receipts from sales 19 948 24 536 28 708
Self-cost 18 850 25 845 29 630
Profit on sales 1 098 -1 309 -922
Profit before tax -2 203 -2 690 -2 221
Net profit -3 757 -2 389 -1 862

Revenue and self-cost 2008-2011 in millions of rubles

Expenditure at Kubanenergo for 2011

Changes in expenditure at Kubanenergo 2009-2011 in thousands of rubles

Expenditure 2009 2010 2011
1. Material expenditure, including 4 997 002.8 7 544 765.1 8 662 456.3
1.1. Purchased power for compensation of losses 4 528 936.4 6 997 212.1 8 049 644.7
1.2. Purchased power for production and commercial needs 65 683.9 93 153.0 78 704.1
1.3. Raw materials and supplies 402 382.5 454 400.1 534 107.4
2. works and production, maintenance and delivery services, including 9 223 673.6 12 763 347.0 15 098 918.5
2.1. Network company services in electricity transmission 8 409 513.9 12 306 815.3 14 636 297.8
2.2. electricity revenue metering services 335 580.2 0.0
2.3. other works and production, maintenance and delivery services 478 579.5 456 531.8 462 620.7
3. Salaries 1 481 179.2 1 808 880.9 1 914 990.3
4. Insurance premiums 359 347.1 441 390.5 623 864.0
5. Non-state pension provision 15 400.0 183.8 4 411.2
6. Depreciation 1 042 023.9 1 137 359.4 1 295 094.2
7. Other, including 1 730 977.1 2 148 721.9 2 030 428.6
services from other organisations, including 459 436.4 700 001.7 338 184.3
management services 393 870.0 357 156.0 0.0
expenditure on insurance 143 904.5 125 206.6 112 985.2
taxes and levies 135 548.8 112 595.6 199 182.7
estimated liability reserve 476 729.3 692 942.7
reserve for vacation carried over 34 560.9 75 251.7
Expenditure on production and sales of products 18 849 603.6 25 844 648.7 29 630 163.1

Cost of goods manufactured in 2009-2011 in millions of rubles

Change in economic indicators and market indicators at Kubanenergo 2009-2011

Indicator Unit of measurement 2009 2010 2011
Profitability
Return on equity % - 36.64 -29.28 -16.14
Return on assets % -12.28 -7.06 -5.09
Return on sales % 5.5 -5.34 -3.21
Receivables turnover number of times 9.78 14.41 9.85
Level of overdue accounts payable % 17.14 26.57 19.53
Market indicators
Working capital ratio - 0.75 1.09 0.95
Liquid ratio - 0.67 1.00 0.85
Equity-assets ratio (requirement criterion not lower than 0.5 - 0.6) - 0.22 0.35 0.38
Equity to debt ratio - 0.29 0.54 0.61
Debt to equity ratio % 350.32 184.04 165.26
Debt service coverage % -16.58 -6.75 -11.82