Media Relations
PJSC Enel Russia
Pavlovskaya 7, bld. 1,
Moscow, Russia
T +7(495) 539 31 53
[email protected]
enel.ru
ENEL RUSSIA PRESENTS 2016-2019 STRATEGIC PLAN
The plan is aimed at maintaining business and financial stability despite the current tough regulatory and
market landscape.
From 2017 onwards the company’s financial performance is expected to revert to a positive
trendreturning to a solid positive incomemainly supported by expected growth in capacity paymentsand
forecastedgradual economic recovery.
Enel Russia’s priorities for the plan period are further CAPEX reduction, strong focus on equipment
reliability, continuing cost containment and debt structure optimisation.
Financial targets (billion RUB)
EBITDA
Net ordinary income
2016
10.0
0.5
Total CAPEX
2017
15.9
6.1
2019
16.9
7.6
26.1 billion RUB over 2016-2019
“In this challenging scenario which is affecting our performance, we will continue to focus on cost
efficiency and CAPEX containment over the 2016-2019 period, with the aim of ensuring the financial
solidity of our business and returning to a grow from 2017 onwards,” said Carlo Palasciano Villamagna,
General Director of Enel Russia. “The worsened economic situation and regulatory framework we faced
last year had a negative impact on our 2015 financials, which despite positive operating results, higher
availability of our generating fleet and a solid cost-containment program, are below the targets set forth in
our previous strategic plan.”
th
Moscow, March 16 , 2016 - Enel Russia has today published its strategic plan for 2016-2019 as
approved by the company’s Board of Directors.
Market environment and guidelines
The company’s 2016-2019 strategic plan is aimed at maintaining business and financial stability despite
the current tough regulatory and market landscape. After a challenging 2015, we expect 2016 to be
characterised by almost flat power demand, tariff growth containment announced by the government and
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PJSC Enel Russia – Pavlovskaya 7, bld. 1, Moscow, Russia, 115 093
a significant amount of new capacity coming into operation, keeping market prices close to 2015 levels.
From 2017 onwards the company’s financial performance is expected to revert to a positive trend
returning to a solid positive incomemainly supported by the growth in payments for new capacity (DPM)
and forecasted gradual economic recovery. In light of the above, Enel Russia has set the following
priorities:




Further reduction of capital expenditures
Strong focus on equipment reliability
Continuationof cost containment initiatives
Debt structure optimisation in line with the changing financial market conditions
Earnings outlook
Throughout 2016-2019 Enel Russia will focus on assuring the reliability of its generating fleet,
compensating for the gradual decline in output at conventional gas-fired units due to the impact from new
entrants to the market. No new capacity additions are envisaged over the business plan period, with
some minor decommissioning of outdated capacity expected at the Sredneuralskaya power plant.
On the costs side, the company will continue to implement its costs efficiency strategy resulting in
average costs growing well below the consumer price index (CPI) over the next four years.
The Enel Russia 2016-2019 strategy envisages EBITDA targets at 10.0 billion RUB in 2016, 15.9 billion
RUB in 2017 and 16.9 billion RUB in 2019. The slight reduction of 2016 EBITDA versus 2015 (10.8 billion
RUB) is mainly due to the higher fixed costs stemmed from higherforecasted inflation in 2016. From 2017
onwards EBITDA is expected to gradually increase thanks to the improvement of coal spreads on the
day-ahead market, an expectedspike in the payments for new capacity (DPM) and cost containment
initiatives.
Under the 2016-2019 strategic plan, Enel Russia is expected to post a net income of 0.5 billion RUB in
2016and continuegrowing from 2017 onwards, also supported by declining interest chargesdue to the
restructuring of Enel Russia’s debt. As a result, net income in 2017 is expected to reach6.1 billion RUB in
2017 and 7.6 billion RUB in 2019.
CAPEX
Planned capital expenditures for 2016-2019 are expected to total approximately 26.1 billion RUB, a
significant reduction compared to the previous business plan (34.4 billionRUBfor 2016-2019). The current
CAPEX plan mainly addresses stay-in-business and mandatory investment projects, while the company
will continue its work on the optimisation of overall investments.
The revision of capital expenditures and other optimisation activities under the 2016-2019 business plan
willsupport the company’s free cash flow within the current challenging market scenario.
DISCLAIMER
This press-release contains certain statements that are neither reported financial results nor other historical information (“forward-looking statements”).
These forward-looking statements are based on Enel Russia’s current expectations and projections about future events. Because these forwardlooking statements are subject to risks and uncertainties, actual future results may differ materially from those expressed in or implied by these
statements due to any number of different factors, many of which are beyond the ability of Enel Russia to control or estimate precisely, including
changes in the regulatory environment, future market developments, fluctuations in the price and availability of fuel and other risks. You are cautioned
not to place undue reliance on the forward-looking statements contained herein, which are made only as of the date of this press-release. Enel Russia
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PJSC Enel Russia – Pavlovskaya 7, bld. 1, Moscow, Russia, 115 093
does not undertake any obligation to publicly release any revisions to any forward-looking statements to reflect events or circumstances after the date
of this press-release.
About Enel Russia
An Enel Group subsidiary, PJSC Enel Russia operates the following power plants: Konakovskaya GRES, Nevinnomysskaya GRES, Sredneuralskaya
GRES and Reftinskaya GRES. The company’s total gross installed electrical capacity is 9,506.7 MW (equivalent to 8,943.8 MW net installed capacity)
and thermal capacity is 2.382 Gcal/h. PJSC Enel Russia’s authorised capital is 35,371,898,370 roubles, which is divided into ordinary shares with a par
value of 1 rouble. The Enel Investment Holding B.V. share in the company’s authorised capital is 56.43%, PFR Partners Fund I Limited’s share is
26.43%, Prosperity Capital Management Limited’s share is 6.33% and other minority shareholders’ share is 10.81%. PJSC Enel Russia shares are
listed in Level 1 MICEX quotation list.
The company was established in Yekaterinburg on October 27th, 2004 as OJSC OGK-5. On July 7th, 2009 by the resolution of Annual General
Shareholders’ Meeting the company was renamed OJSC Enel OGK-5 and on August 8th, 2014 the Federal Tax Service registered the new version of
the company’s charter with the name OJSC Enel Russia. On June 25th, 2015 the company changed its legal type and was renamed PJSC Enel
Russia.
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PJSC Enel Russia – Pavlovskaya 7, bld. 1, Moscow, Russia, 115 093