Revenue and Funds Raised
In the reporting year, the revenue for the grid connection services amounted to RUB 731 mln (excl. VAT), or 112% of the planned value. The overachievement of the target is the result of ongoing work carried out by Rosseti Kuban to interact with applicants to ensure that contractual obligations are fulfilled as soon as possible. The major focus is also placed on the provision of additional services to applicants in terms of fulfilling the technical conditions for their obligations, which in turn reduces the terms of contract execution.
The overfulfillment of the target on receipt of funds is associated with the receipt of advances from the applicants earlier than the planned date under the grid connection agreements.
Revenue from grid connection in 2020 (RUB 731 mln), down by RUB 3,475 mln year-on-year. The deviation is due to the execution of contracts with large consumers in 2019 – Taman Federal Highway Administration of the Federal Road Agency FSI and Rostransmodernization FSI, the total revenue of which amounted to RUB 3,546 mln.
At of year-end 2020, the Company received RUB 1,922 mln (incl. VAT) for grid connection services, which is 318% higher than the planned value and 19% (RUB 307 mn) more than the same indicator for 2019 (RUB 1,615 mn (incl. VAT)). This is due to the receipt of large advances in 2020 under the concluded grid connection agreements: RUB 689.9 mln – from Caspian Pipeline Consortium - R CJSC, RUB 120 mln – from Studio Project Design LLC.
| Power grids (Company’s branches) | Funds, incl. VAT (RUB thsd) | Revenue, excl. VAT (RUB thsd) | ||||
|---|---|---|---|---|---|---|
| Target | Actual | % | Target | Actual | % | |
| Total | 604,332 | 1,921,771 | 318.00 | 655,015 | 731,309 | 111.65 |
| Sochi | 99,859 | 443,169 | 443.79 | 201,284 | 212,945 | 105.79 |
| Krasnodar | 37,571 | 322,972 | 859.64 | 185,676 | 240,412 | 129.48 |
| Southwest | 388,838 | 936,102 | 240.74 | 62,288 | 62,349 | 100.10 |
| Adygea | 5,630 | 41,635 | 739.54 | 15,306 | 25,009 | 163.39 |
| Armavir | 5,855 | 22,416 | 382.86 | 7,707 | 9,832 | 127.58 |
| Labinsk | 978 | 4,187 | 428.10 | 8,194 | 11,312 | 138.06 |
| Leningrad | 4,135 | 20,460 | 494.80 | 25,451 | 31,716 | 124.62 |
| Slavyansk | 36,352 | 42,177 | 116.02 | 124,771 | 112,492 | 90.16 |
| Timashevsk | 11,885 | 60,957 | 512.87 | 12,709 | 13,586 | 106.90 |
| Tikhoretsk | 7,452 | 18,997 | 254.92 | 2,742 | 3,627 | 132.25 |
| Ust-Labinsk | 5,777 | 8,699 | 150.57 | 8,886 | 8,028 | 90.34 |
When split by branches, the revenue target was achieved almost uniformly, without significant fluctuations. The power Grids of Slavyansk and Ust-Labinsk fulfilled the revenue indicator by 90%.
The greatest excess of the actual indicators over the target ones for the receipt of funds was shown by the Power Grids of Krasnodar and Adygeya, which is due to the receipt of advances from the applicants earlier than the planned date under the grid connection agreements (including from Research Institute - Regional Clinical Hospital No. 1 named after Professor S. V. Ochapovsky”, Regional Clinical Hospital No. 2, Kuban State University of Physical Culture, Sports and Tourism, Renewable Energy Sources LLC). Also in 2020, a large advance payment (RUB 689.9 mn) was received under the agreement with Caspian Pipeline Consortium - R CJSC.
In 2021, the planned Company’s revenue from grid connection services is at least RUB 2.3 bn (excl. VAT). Major grid connection objects in terms of revenue will be: Caspian Pipeline Consortium – R CJSC, (estimated revenue – RUB 1.15 bn, excl. VAT), Novoroslesexport JSC (RUB 250.59 mln), Research Institute - Regional Clinical Hospital No. 1 named after Professor S. V. Ochapovsky (RUB 238.09 mn), All-Russian Children’s Center “Orlyonok” (RUB 189.37 mln).