EBITDA in 2013
The cumulative effect of cost management program
Increase in revenue in 2013
Additional income from fulfilling the functions of a supplier of last resort in 2013
S & P credit rating
National Rating Agency credit rating
2013 Financial Calendar:
|February||Standard & Poor`s rating agency improved the Company’s rating by one point from “BB-” to “BB” with a “Stable” outlook.|
|March||IDGC of Centre published its RAS financial statements for 2012: the revenues and power transmission volumes demonstrated a 1.9 % and 1.8 % growth respectively, power losses were reduced by 0.4 %.|
|April||The Company published its IFRS financial statements.|
|The National Rating Agency improved the individual credit rating of IDGC of Centre from “AA-” to “AA” (Very High Credit Quality, Level 2).|
|The first coupon payment was made in the amount of 178.5 mln RUB on Series BО-01 traded certified interest-bearing non-convertible bearer bonds (state identification number 4B02-01-10214-A) with a total circulation volume of 4 bln RUB and the coupon price of 44.63 RUB.|
|IDGC of Centre published its Q1 2013 financial statements under RAS: the revenue and gross profit demonstrated a 21.5 % and 21.0 % growth respectively.|
|June||The Company prepared the issue of Series BО-02 – BО-06 bonds for a total amount of 25 bln RUB with a 10-year maturity period, state identification numbers 4B02-02-10214-A – 4B02-06-10214-A respectively.|
|July||H1 2013 financial statements under RAS were published: the Company’s revenue demonstrated a 23.3 % growth.|
|August||The Company published its interim H1 2013 financial statements under IFRS.|
|October||The second coupon payment was made in the amount of 178.5 mln RUB on Series BО-01 traded certified interest-bearing non-convertible bearer bonds (state identification number 4B02-01-10214-A) with a total circulation volume of 4 bln RUB and the coupon price of 44.63 RUB.|
|The Company published its Q1-Q3 2013 financial statements under RAS.|
|IDGC of Centre signed credit agreements with VTB Bank for a total amount of 7.2 bln RUB with a term of 5-6 years.|
|December||IDGC of Centre signed a facility agreement with Sberbank of Russia for a total amount of 6 bln RUB.|
|VTB Bank provided a facility to IDGC of Centre in the amount of 4 bln RUB.|
IDGC of Centre and NLMK
On July 04, 2013, the Moscow District Federal Court overruled the claim of JSC NLMK to recover 5.1 bln RUB from IDGC of Centre and recognized the claims of the metallurgical works as frivolous.
In October 2011, Joint-stock Company Novolipetsky Metallurgical Works (hereinafter NLMK) filed a claim with the Moscow Commercial Court to recover 9 bln RUB transferred to IDGC of Centre in 2008-1011 for the purposes of payment for power transmission services. NLMK alleged that the power transmission services contract dd. 2005 signed by NLMK and JSC Lipetskenergo with regard to the Severnaya, Novaya and Metallurgicheskaya substations was terminated due to the fact those services could no longer be rendered, as IDGC of Centre (successor of JSC Lipetskenergo) had no legal grounds for owning the electrical equipment involved in the power transmission.
During the course of legal proceedings, the claim of NLMK was reduced to 5.1 bln RUB. The court ruling dd. October 17, 2012 satisfied the claims of NLMK to recover 5.1 bln RUB. The court of appeal’s resolution dd. March 21, 2013, left the ruling unchanged.
However, on July 4, 2013, the Moscow District Federal Court satisfied the cassation appeal of IDGC of Centre and denied NLMK recovery of the full amount of funds. The court ruling was based on the fact that NLMK did not deny having received electrical energy and power transmission services during the disputed period. According to contractual relations, it was IDGC of Centre that rendered power transmission services for NLMK during the disputed period. Furthermore, the plaintiff did not initiate contract termination, the parties were signing acceptance reports for the electrical energy and NLMK was paying for the services under the set tariffs.
NLMK filed an application with the Supreme Commercial Court to review the claim in exercise of supervisory power, however, the court decision dd. October 18, 2013 ruled against reviewing the claim.
Being a purchaser of electrical energy and capacity and having the status of a wholesale market participant, NLMK signed an agreement on joining the wholesale market trading system. In order to carry out its operations, NLMK needs to receive electrical energy through the Severnaya, Metallurgicheskaya and Novaya substations, which belong to JSC FGC on the basis of title thereto. The electrical grid equipment of these substations, to which the power installations of NLMK are directly connected, was initially subleased to JSC Lipetskenergo, the successor of which is IDGC of Centre.
On July 01, 2008, JSC FGC was restructured and merged JSC ITGC of Centre, and as a result the lessor and lessee under the primary leasing contract became one and the same entity. This fact served the basis for terminating the above-mentioned contract. In 2010, JSC FGC started reconstruction of the Severnaya substation. A new substation with the same name was built on the new land.
On February 28, 2011 NLMK submitted a request to sign a direct power transmission services contract with JSC FGC on the ground that the equipment of the new Severnaya substation was not leased by IDGC of Centre. After receiving a rejection from JSC FGC to sign a direct contract, NLMK filed a lawsuit to make JSC FGC sign this contract.
On February 10, 2012, the Moscow Commercial Court ruled in favor of the claim of NLMK and made JSC FGC sign the power transmission services contract effective on April 1, 2011.