PRESS: Gazprom Energoholding 2020 net profit at 42 bln rbl – CEO

MOSCOW, Feb 3 (PRIME) -- The consolidated net profit of Gazprom Energoholding, a company that unites power assets of Russian gas giant Gazprom, exceeded 42 billion rubles in 2020, CEO Denis Fyodorov said in an interview to Kommersant business daily published on Wednesday.

“The situation was very unpleasant at the beginning of 2020, but nevertheless, we managed to outperform the business plan. Consolidated net profit of the Gazprom Energoholding group exceeded 42 billion rubles, and we currently forecast EBITDA (earnings before interest, taxes, depreciation, and amortization) at around 106 billion rubles, above the plan,” he said.

The company’s loan portfolio shrank sharper than expected – to 103 billion rubles from 119 billion rubles, he said.

Investment program of Gazprom Energoholding for 2021 is to amount to 91 billion rubles, he said.

In 2020, the company reduced its maintenance, re-equipment, and investment programs due to the pandemic by at least 20%. “We have formed and approved a business plan and an investment program for 2021 recovering the planned figures for 2020. Still, we are working on a backup option in case the winter is warm and demand for power does not recover,” Fyodorov said.

The company also expects the subsidiaries to pay at least 50% of their net profits for 2020 calculated under International Financial Reporting Standards (IFRS) in dividends, and for some companies, dividend expectations amount to 75% of their net profits.

“According to our business plan, dividend payments should amount to 50% of the net profit. The dividends of the companies listed on the stock exchange (Mosenergo, Territorial Generating Company-1, and Territorial Generating Company-2) are to amount to no less that the dividends for 2019, which stood at 14.8 billion rubles,” he said.

“We are talking about absolute figures now. The issue of how we would distribute dividends among the companies is open. It will likely amount to at least 50% of the profits for each of them. In some forecasts the dividends of some companies may reach 75%.”

He said that Gazprom Energoholding was interested in buying power generating assets of oil major Lukoil and Quadra Power Generation if all companies find common ground in asset valuation.

Gazprom Energoholding also plans to launch a thermal power plant in Serbia’s Pancevo until mid-2021. “There will be no fines there. We will do everything we can to launch the plan until mid-year. The delay of the deadlines was connected to the coronavirus restrictions in Serbia and China,” he said.

(75.9051 rubles – U.S. $1)

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