GGU Energy and Water Utilities Investment Overview
GGU P&L (1H17)
Electric power sales declined due to lower
generation of Zhinvali HPP
Revenue from technical support increased
because of doubled new connection
applications compared to LY
Other income increase is attributable to the sale
of land plots and recognition of deferred
income per IFRS 15
Finance income increase is due to the interest
rate improvements on cash balances in banks
Expenses
Lower own consumption and Zhinvali HPP tail
race construction works which completed 2
weeks ahead of time resulted in the decrease of
electricity and transmission costs
Maintenance expenditure decrease along with
other consumables reduction is due to the
preventive capital investments, that led to
maintenance cost saving
Numbers are given in GEL, thousand
1H17A
1H16A
%
y-o-y
change
Revenues
REVENUES
Revenue from water supply to legal entities
38,928
36,384
7.0%
Revenue from water supply to individuals
16,053
15,132
6.1%
Revenue from electric power sales
3,094
4,162
-25.7%
Revenue from technical support
Other income
Total revenue
OPERATING EXPENSES
1,412
792
78.2%
1,296
458
182.8%
60,783
56,929
6.8%
Provision of trade receivables
(1,125)
(1,473)
-23.6%
Salaries and benefits
(9,298)
(8,605)
8.1%
Electricity and transmission costs
(8,885)
(9,060)
-1.9%
Raw materials, fuel and other consumables
(1,327)
(1,961)
-32.3%
Infrastructure assets maintenance expenditure
(658)
(1,212)
-45.7%
General and administrative expenses
(1,611)
(1,553)
3.8%
Taxes other than income tax
(1,783)
(1,557)
14.5%
Professional fees
(966)
(953)
1.3%
Insurance expense
(529)
(266)
98.7%
Other operating expenses
(3,401)
(3,688)
-7.8%
Total operating expenses
(29,583)
(30,328)
-2.5%
EBITDA
31,199
26,601
17.3%
EBITDA Margin
51%
47%
9.8%
Depreciation and amortisation
(9,820)
(8,381)
17.2%
EBIT
21,379
18,220
17.3%
EBIT Margin
35.2%
32.0%
9.9%
Finance income
499
171
191.6%
Finance cost
(5,624)
(5,064)
11.1%
Foreign exchange gains (losses)
(63)
(535)
-88.2%
EBT
16,191
12,792
26.6%
Income tax expense
(641)
(1,741)
-63.2%
NET INCOME/LOSS FOR THE PERIOD
15,550
11,051
40.7%
Net Income Margin
25.6%
19.4%
31.8%
GGU
October 2017
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