According to RAS, the Revenue of PJSC MOESK for 2016 Grew by 8.2%

PJSC MOESK announces financial results under RAS for 2016.

The Company's revenue reached 139.9 billion rubles, including revenue from electricity transmission - 128.6 billion rubles. In the reporting period, EBITDA amounted to 37.2 billion rubles, net profit is 6.1 billion rubles.

In comparison with the same period in 2015, the revenue growth by transfer is 9.3%, related to the growth of energy consumption and "boiler" productive supply. The revenue for technological connection for the reporting period amounted to 10.0 billion rubles.

The growth in production costs relative to the same period of 2015 by 9.5% is primarily due to an increase in conditionally uncontrolled expenses for purchase of electricity losses (16.2%), services of FGC UES and TSE (18.8%). The increase in the above-mentioned expenses is due, inter alia, to the increase in prices for purchase of electricity losses, as well as the growth of tariffs for FGC UES and TSE services as a result of tariff and balance decisions. In 2016, the level of losses was 8.33%, for the same period last year - 8.55%. The decrease in the Company's own expenses amounted to 0.9%. This fact is related to implementation of a cost management program by the Company. It is also worth noting the high level of payment for services provided for electricity transmission - in 2016 this indicator was 102%.

The main impact on the decrease in EBITDA and net profit in comparison with the same period in 2015 was due to an increase in other expenses of the Company, namely, accrual of reserves for doubtful debts and estimated liabilities of the Company, as well as an increase in other non-monetary expenses.

It should be noted that, according to the results of 2016, the Company ensured fulfillment of the targeted indicator for the net profit, established by the Business Plan approved by the Board of Directors of the Company.

An important fact of the Company's activities for 2016 was payment of record dividends for 2015 - 50% of the net profit under IFRS. Thus, the total amount of payments was 6.3 billion rubles or 12.97 kopecks per one ordinary share of the Company.

RAS financial results for 2016

No.	Indicator name	2016	2015	Change
1.	Revenues, million rubles, incl.	139 860	129 288	8.2 %
	- from transmission of electricity, million rubles	128 642	117 683	9.3 %
	- from technical connection, million rubles	10 012	10 302	(2,8 %)
	- from non-tariff activities, billion rubles	1206	1304	(7.5 %)
2.	Production cost, million rubles	(124 000)	(113 217)	9.5 %
	- from transmission of electricity, million rubles	(122 734)	(111 402)	10.2 %
	- from technical connection, million rubles	(801)	(1199)	(33.2 %)
	- from non-tariff activities, billion rubles	(465)	(615)	(24.4 %)
3.	Gross profit, million rubles	15 861	16 071	(1.3 %)
4.	Profitability by gross profit, %	11.3	12.4	(8.8 p.p.)
5.	Other income, million rubles	7202	7258	(0.8 %)
6.	Other expenses, million rubles	(10 051)	(5 686)	76.8 %
7.	EBITDA, million rubles	37 231	41 954	(11.3%)
8.	EBITDA profitability, %	26.6	32.5	(18 p.p.)
9.	Net profit, million rubles	6079	9247	(34.3 %)
10.	Net profit profitability, %	4.3	7.2	(39.2 p.p.)