• The increase in EBITDA is explained by higher DPM revenues received by CCGT units, higher volume of delivered capacity as well as fixed costs containment.
• EBIT increase and lower net financial charges contributed to the growth of net income.

MAIN FINANCIAL HIGHLIGHTS (millions of RUB)

	9M 2017	9M 2016	Change
Revenues	53,876	51,792	+4.0%
EBITDA	12,859	9,539	+34.8%
EBIT	10,139	6,915	+46.6%
Net income	6,147	2,052	~3 times
Net debt at the end of the period	20,075	20,348	-1.3%

“During the past nine months the company posted positive results largely thanks to higher capacity payments and to the efficient cost containment strategy. Notwithstanding the lower production largely caused by external factors, the company has already come close to its full year bottom line guidance and we will do our best to maintain this positive trend over the remaining part of the year”

– Carlo Palasciano Villamagna, General Director of Enel Russia

Moscow, November 2nd, 2017 – PJSC Enel Russia has published its operating and unaudited financial results for the first nine months of 2017 in accordance with the International Financial Reporting Standards (IFRS).

Revenues increased, mainly due to:

• higher DPM revenues received by both CCGT units, entering their seventh year of operation (as provided for by the DPM pricing methodology approved by the government);  
• increased volume of delivered capacity, explained by higher capacity sales from Nevinnomysskaya CCGT (as the unit was in outage at the beginning of 2016), as well as lower unplanned outages at all power plants;
• higher revenues from regulated power sales due to tariff increase enforced in July 2016.

This increase in revenues has more than offset the lower production of the company’s facilities that was mainly attributable to lower conventional gas equipment use by the System Operator due to overcapacity in the Central and Urals regions.

EBITDA grew significantly, largely thanks to higher revenues, additionally supported by fixed cost containment, mainly due to efficient overhead management activities.

The increase in EBIT reflected EBITDA growth.

Net income reflected EBIT growth, additionally supported by lower net financial charges that were mainly attributable to:

• optimisation of the company’s debt portfolio structure, including a decreased exposure to euro/rouble exchange rate fluctuations;
• lower average debt level compared with 9M 2016;
• the recording in the first quarter of 2016 of a one-off accounting adjustment associated to the early repayment of a loan with Royal Bank of Scotland.

Net debt at the end of the reporting period decreased on the figure posted as of December 31st, 2016, mainly due to solid operating cash flow compensating the payments made over the period.

OPERATIONAL HIGHLIGHTS

	9M 2017	9M 2016	Change
Net power output (GWh)	29,074	29,853	-2.6%
Power sales (GWh)	33,334	34,433	-3.2%
Heat sales (thousand Gcal)	3,524	3,546	-0.6%

Net power output decreased, relating to mixed dynamics affecting Enel Russia’s power plants, in particular:

• Konakovskaya output dropped by 17%, affected by higher production of nuclear facilities in the Central region;
• Sredneuralskaya output decreased by 12%, mainly attributable to lower equipment use by the System Operator, caused by overcapacity in the Urals region.
• This decrease was partially offset by:
• Nevinnomysskaya output recovery by 9%, which was explained by the CCGT unit maintenance during the first three months of 2016, as well as higher equipment use by the System Operator due to increased demand in Southern Russia in 2017;
• Reftinskaya output grew by 4%, reflecting the difference in the schedule of maintenance between 9M 2016 and 9M 2017.

Power sales were down due to the abovementioned net power output dynamics.

Heat sales stood broadly unchanged.