Unipro publishes unaudited IFRS Results for the First Half of 2016

Unipro PJSC publishes unaudited financial results for the first half of 2016, in accordance with International Financial Reporting Standards.

The company’s revenue for January–June 2016 increased by 10.3% as compared to the first half of 2015 and totalled RUB 39.5 bn. The increase of the revenue during the reporting period was triggered by the operation of Power Unit 4 of Surgutskaya GRES-2 that was undergoing repairs in the corresponding period of 2015, as well as by the receipt of payment for capacity provided under a Capacity Supply Agreement for Power Unit 3 of Berezovskaya GRES before 1 February 2016.

EBITDA for the first half of 2016 totalled RUB 2.5 bn. The underlying net loss totalled RUB 0.6 bn. The earnings decline was mainly caused by the accident at Power Unit 3 of Berezovskaya GRES that occurred in February 2016 and resulted in the reduction of the carrying amount of the Unit. Without this factor, the operating profit of the company would have been higher than the indicators of the previous year.

Key figures of Unipro PJCS under IFRS for 1 half 2016 (RUB thousand):

Power Unit 3 of Berezovskaya GRES was removed out of service on 1 February 2016 for the purpose of repairs and will be fully reconstructed at the expense of the company. As of the date of the press release, the results of the preliminary inspection show that the reconstruction costs will amount to at least RUB 25 bln and that the recommisioning of Unit 3 will be no sooner than in mid 2018. Management believes that a significant amount of the potential damage will be covered by the insurance.