GGU Energy and Water Utilities Investment Overview slide image

GGU Energy and Water Utilities Investment Overview

GGU P&L (2016) Numbers are given in GEL, thousand 2016A 2015A y-o-y % change REVENUES Revenue from water supply to legal enteties Revenue from water supply to individuals Revenue from electric power sales Revenue from technical support Other income Total revenue OPERATING EXPENSES 78,139 74,587 4.8% 31,264 30,170 3.6% 10,112 9,182 10.1% 4,573 3,683 3,151 647 24.2% 387.4% 127,239 118,268 7.6% Provision of trade receivables (2,198) (432) 408.4% Salaries and benefits (16,680) (20,920) -20.3% Electricity and transmission costs Total water sales increased by 4.4% as compared to LY comparative results Increase of electric power sales of 10.1% is due to the increased volume of sales due to higher electricity generation Increase of transmission cost compared to the LY is due to the hike of GCF by 238% Decrease of maintenance expenses compared to LY is due to prudent rehabilitation works (17,747) (11,554) 53.6% Raw materials, fuel and other consumables (2,856) (5,253) -45.6% Infrastructure assets maintenance expenditure (2,402) (4,251) -43.5% General and administrative expenses (3,101) (2,950) 5.1% Taxes other than income tax (3,298) (3,398) -2.9% Decrease of the income tax expense is due to the write-off of the accumulated deferred tax liability and retention of only those charges which may be realized before 1-Jan-2017 Professional fees (2,286) (2,475) -7.6% Insurance expense (793) (317) 150.1% Other operating expenses (7,363) (5,001) 47.2% Total operating expenses (58,724) (56,551) 3.8% EBITDA 68,515 61,717 11.0% EBITDA Margin 54% 52% Depreciation and amortisation (17,842) (17,919) -0.4% EBIT 50,673 43,798 15.7% EBIT Margin 40% 37% Finance income 220 180 22.2% Finance cost (10,985) (7,658) 43.4% Foreigns exchange gaines (losses) (462) (14,158) -96.7% EBT 39,447 22,162 78.0% Income tax expense (3,659) (6,948) -47.3% NET INCOME/LOSS FOR THE PERIOD 35,787 15,214 135.2% Net Income Margin 28% 13% GGU October 2017 page 13
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