3.6

Analysis of performance results

Installed capacity

Operating Indicators

In 2020, OGK-2 generating capacities ensured the stable operation of power plant equipment and a reliable supply of heat and electric energy to consumers.

Electricity generation

The volume of electricity generation by OGK-2 JSC power plants was 44,247.3 million kW*h in 2020, which is 19.1% less than in 2019 (54,688.1 million kW*h).

The OGK-2 JSC share of generation in the Russian electricity market declined from 6.4% to 4.2% between 2016 and 2020. The main reasons for reducing production:

• strategy to minimize the composition of the included generating equipment of Ryazanskaya GRES, Novocherkasskaya GRES, Stavropolskaya GRES, Pskovskaya GRES aimed at reducing the operating time of non-marginal equipment by generating price bids when calculating the choice of the composition of the turned-on generating equipment;
• reduction of equipment load at Krasnoyarskaya GRES-2 and transfer to the new owner on October 01, 2020;
• reduction of equipment load at Surgutskaya GRES-1, Kirishskaya GRES, Cherepovetskaya GRES and Troitskaya GRES on behalf of the System Operator / decrease in demand for generation in the UPS.

Thermal energy generations

Heat output from the collectors across OGK-2 JSC as a whole was 5.6 million Gcal in 2020, which is 12.0% less than in 2019 (6.3 million Gcal).

Kirishskaya GRES and Surgutskaya GRES-1 account for the bulk of heat output from the collectors of OGK-2 JSC.

Thermal energy production by OGK-2 JSC is seasonal. The bulk of the supply of thermal energy falls on the period from October to April.

Installed Capacity Utilization Factor

The ICUF indicator directly depends on the electricity generation by plants, which varies depending on the demand for electricity.

In 2020, ICUF decreased by 6.0%, compared to 2019. In 2020, the highest ICUF of 76.5% was observed at Serovskaya GRES. In 2020, the highest ICUF growth compared to 2019 occurred at Groznenskaya TPP (+8.0%).

Specific Fuel Consumption

At OGK-2 JSC as a whole, the specific consumption of standard fuel for electricity supply in 2020 increased by 1.5 g/kW*h, and the specific consumption of standard fuel for supply of thermal energy decreased by 0.5 kg/Gcal.

Factors that influenced the increase in the SRFC for electricity supply:

• reduction in the share of CCGT output at Kirishskaya GRES with a below-average level of SRFC;
• increase in the share of power output at Groznenskaya TPP, units 1–7 of Novocherkasskaya GRES, the 1st and 3rd stages of Troitskaya GRES, the 1st stage of Cherepovetskaya GRES, the 1st stage and unit 2 of Ryazanskaya GRES with an above-average level of SRFC;
• reduction in economical efficiency of Adlerskaya TPP, Kirishskaya GRES, Groznenskaya TPP, Stavropolskaya GRES, Serovskaya GRES, Novocherkasskaya GRES, Cherepovetskaya GRES, Troitskaya GRES, Krasnoyarskaya GRES-2.

The decrease in SRFC for heat output is due to an increase in the share of heat supply at Surgutskaya GRES-1, Kirishskaya GRES and Adlerskaya TPP with a below-average level of SRFC.

Fuel balance

The technological process of heat and electricity production determines the use by OGK-2 of various types of fuel as the main raw material. Coal is represented as the main fuel along with gas in the structure of the fuel balance of OGK-2. Fuel oil and diesel fuel are also used as backup, starting and emergency fuels.

Gas prevails in the structure of the OGK-2 fuel balance. In particular, Surgutskaya GRES-1, the 2nd and 3rd stages of Ryazanskaya GRES, Stavropolskaya GRES, Kirishskaya GRES, Pskovskaya GRES, Adlerskaya TPP and Groznenskaya TPP, as well as CCGT-450 of Cherepovetskaya GRES and Serovskaya GRES. Coal is the main fuel for the 1st stage of Ryazanskaya GRES, Troitskaya GRES, Krasnoyarskaya GRES-2. Novocherkasskaya GRES and the 1st stage of Cherepovetskaya GRES have the opportunity to use both gas and coal as the main fuel for the production of heat and electricity, which enables them to regulate their fuel balance in the event of price fluctuations for these types of fuel.

At the same time, fuel oil serves as reserve fuel at three OGK-2 power plants (Ryazanskaya GRES, Stavropolskaya GRES, Kirishskaya GRES), and five power plants (the 1st and 2nd stages of Ryazanskaya GRES, Novocherkasskaya GRES, Troitskaya GRES, Krasnoyarskaya GRES-2 and Cherepovetskaya GRES) use fuel oil as kindling fuel. CCGP-450 of Cherepovetskaya GRES, CCGT-450 of Serovskaya GRES, Adlerskaya TPP and Groznenskaya TPP can use diesel fuel in emergency situations.

The fuel supply strategy pursued by OGK-2 is aimed at optimizing the fuel balance in order to minimize fuel costs. It provides for the maximum possible replacement of expensive fuel with a cheaper one, the purchase of fuel through competitive procedures, the conclusion of long-term contracts for the supply of fuel.

In 2020, the following structure of the OGK-2 JSC fuel balance was formed: coal – 22.64%; gas – 77.23%; fuel oil – 0.13%. Compared to 2019, the share of coal decreased by 2.9%, and the share of gas increased by 2.9%.

For OGK-2 JSC as a whole, coal consumption was 5.2 million tons in 2020, which is 2.3 million tons or 30.8% less than in 2019.

In 2020, gas consumption decreased by 1.7 billion cub. m (by 15.2%) to 9.7 billion m³.

The increase in the share of gas in the fuel balance and, as a consequence, the decrease in the share of coal is associated with:

• The increase in the share of gas-fired generation at Surgutskaya GRES-1, Groznenskaya TPP, Serovskaya GRES and Adlerskaya TPP;
• The increase in the share of heat energy supplied by gas to Kirishskaya GRES and Adlerskaya TPP;
• Transfer of Krasnoyarskaya GRES-2 to the new owner on October 01, 2021.

Fuel oil and diesel fuel consumption amounted to 14.5 thousand tons (-18.6%) in 2020

Financial results

Financial results according to IFRS

Revenue

In 2020, the bulk of revenue (94.7%) was sales of electricity and power

Sales of electricity (capacity) by OGK-2 JSC on the retail markets were terminated in 2019. Herewith, in 2019, electricity was sold on retail markets only to guaranteeing suppliers and was determined by the transition period associated with the need for guaranteeing suppliers to obtain the right to trade electricity on the wholesale market for electricity and power at points of supply registered in relation to the respective retail electricity consumers (electricity sales directly to end consumers were terminated in 2018).

Operational Costs

Variable Costs

Fixed Costs

EBITDA and profit generation

EBITDA was 31,569 million rubles, having increased by 0.37 million rubles (by 1.17%) compared with the same period in 2019.

Financial indicators according to IFRS

The indicators used to assess the financial condition of OGK-2 are the following financial indicators, calculated on the basis of accounting data according to IFRS:

IFRS Debt

As of December 31, 2020, the total amount of borrowed funds amounted to 44,942 million rubles, which is 14.6% lower than the same indicator in 2019.

Long-term debt as of December 31, 2020 amounted to 38,877 million rubles.

Short-term debt as of December 31, 2020 amounted to 6,065 million rubles.

The change in the structure of borrowed funds is mainly due to scheduled debt repayments and the issuance of new bond-secured loans.

Effective interest rates in the reporting period ranged from 4.25% to 8.83%. The company’s net debt as of December 31, 2020 amounted to 44,935 million rubles.

Financial assistance from state authorities

In 2020, OGK-2 received no financial assistance from state authorities.