Managing Director for Economy and Finance “Samruk-Energy” JSC
The Company’s operations in 2016 in the power and coal industries were carried out according to the approved plans.
Equity method is used by “Samruk-Energy” JSC Group of Companies in consolidation for the purposes of establishing a single approach to the preparation of the results of financial and business operations. Moreover, according to the applicable accounting policy, fixed and intangible assets are recognized at their initial value, i.e. without taking into account revaluation.
Given the aforesaid, applying equity method in the consolidated balance sheet excludes major companies’ turnovers, including “SESDPP-2” JSC, Forum Muider B.V., a coal assets company, in which Samruk-Energy JSC holds a 50 % interest. Moreover, the shared profit reflects the financial result of “Balkhash TPP” JSC associated company by the ownership share of 49,99 %.
In the process of forming the consolidated financial result of the Company, the profit share of those companies is recognized in the item “share of profit/loss of organizations accounted for using the equity method of accounting”.
According to the approved Development Plan for 2016, the assets subject to privatization “Aktobe CHP” JSC, “MDPGC” JSC, “Shygysenergotrade” LLP, “TM” LLP, “MM” LLP accounted in core operations.
On November 23, 2016, the Company’s Board of Directors approved a plan for privatization of a number of subsidiaries in accordance with the Government Decree on the privatization of assets. As of December 31, 2016, all assets and liabilities of “Aktobe CHP” JSC, “EKREC” JSC, “Shygysenergotrade” LLP, “MDPGC” LLP, “TM” LLP, “MM” LLP were included in the disposal group.
Key financial and economic figures
|Net income excluding currency difference||Bln.tenge||29.01|
|EBITDA Margin||%||42 %||39 %||36 %||39 %|
* Total profit without taking into account the impact of exchange rate differences.
As a result of financial and economic activities over the reporting period, the company received a profit of 17.8 billion tenge, while an actual loss for 2015 was (–77.8) billion tenge.
In 2015 foreign exchange losses in the amount of 106,9 bln. tenge pertaining to currency loans of the Head office (the Company) and “Moynak HPP” JSC, “Ekibastuz SDPP-2” JSC, “Bogatyr Komir” LLP were reflected in 2015 due to the decrease in the tenge exchange rate.
Compared to the result of 2015, without taking into account the impact of foreign exchange losses, the decrease was due to the reduction in operating profit of “SDPP-1” LLP resulted from a decrease in sales volumes and tariffs associated with economic downturn. In accordance with the approved Development Plan, profit in 2017 is planned at 10, 39 bln. tenge, in 2018 at 19.32 bln. tenge.
The Company’s Development Plan for 2017–2021 provides for the sale of the following assets – “Tegis Munay” LLP, “Mangyshlak Munay” LLP, “EKREC” JSC, “Shygysenergotrade” LLP, “MDPGC” LLP, “Aktobe CHP” JSC – in the forecast for 2017 they are referred to discontinued operations, and assets of “AZhC” JSC, “APP” JSC, “Almatyenergosbyt” LLP are expected to be sold in 2019.
EBITDA amounted to 71,6 billion tenge in 2016, while the fact in 2015 was 76,5 billion tenge. The decrease in sales volumes and tariffs has negatively affected the operating profit of “SDPP-1” LLP in 2016, which in turn affected the EBITDA. In the forecast for 2017, the indicator is adjusted to 74.1 billion tenge, the growth of which compared to 2016 is mainly due to the increase in electricity sales volumes of “ESDPP-1” LLP. It is planned to further increase “ESDPP-1” LLP sales volumes in the forecast for 201, owing to its export potential.
EBITDA margin also tends to slightly decrease by 2016 (39 %) and gradual adjustment in the future by years.
Operating profit by business segments
Operational and financial indicators
Share of “Samruk-Energy” JSC in total power generation across the RK for 2016
The share of “Samruk-Energy” JSC in total power generation in the Republic of Kazakhstan in 2016 was 24 %, compared to 2015 the share grew by 1 %.
Production KPI (broken down by producers)
|Subsidiary and affiliate name||2015||2016||Deviation 2016 to 2015, %||2017 (forecast)||2018 (forecast)|
|Volumes of electricity production, million kWh|
|“APP” JSC||5,086||5,911||116 %||5,130||5,130|
|“Aktobe CHP” JSC||666||906||136 %||900|
|“Ekibastuz SDPP-1” LLP||10,729||9,037||84 %||11,138||14,700|
|“Station Ekibastuz SDPP-2” JSC||3,211||4,976||155 %||5,459||5,100|
|“ZhSDPP” JSC (actl.until the sale of the asset – before May 15, 2015)||1,176||0 %|
|“Shardarinsk HPP” JSC||465||334||72 %||320||378|
|“Moynak HPP” JSC||903||1,166||129 %||906||906|
|“Samruk-Green Energy” LLP||3.2||3.2||101 %||3.3||3.2|
|“First Wind Power Plant” LLP||79||152||192 %||172||172|
|Electricity transmission volumes, mln. kWh|
|“AZhC” JSC||6,165||6,252||101 %||6,257||6,889|
|“EK REC” JSC||3,431||3,375||98 %||3,566|
|“MDPGC” JSC||2,518||2,490||99 %||2,554|
|Electricity sales volumes, mln. kWh|
|“AlmatyEnergoSbyt” LLP||5 771||5 767||100 %||5 789||6 410|
|“Shygysenergotrade” LLP||2 643||2 671||101 %||2 629|
|Total||8 414||8 438||100 %||8 418||6 410|
|Heat production volumes, thous. Gcal|
|“Almaty Power Plants” JSC||5,031||4,971||99 %||5,333||5,333|
|“Aktobe CHP” JSC||1,795||1,763||98 %||1,815|
|“Station Ekibastuz SDPP-2” JSC||81||71||87 %||76||76|
|“ZhSDPP” JSC (actl.until the sale of the asset – before May 15, 2015)||5.3||0 %|
|Coal sales volumes, mln. tons||33.9||35.1||103 %||33.9||36.1|
Electricity production volumes in 2016 have increased by 1 % comparedto the volume of 2015 (taking into account the volumes of “ZHSDPP” JSC). The main increase in volumes occurred as a result of electricity exports by “ESDPP-2” JSC to Russia in the amount of 1,859 mln. kWh, and also due to an increase in the output by 1,128 million kWh by Moynak and Kapchagay HPPs, “APP” JSC due to growth of water inflow.
OTHER PRODUCTION FIGURES
ICUF (Installed capacity utilization factor)
In 2016 the installed capacity across all energy producing plants was at the level of 2015 except for Aktobe CHP, the increase in installed capacity was due to the introduction of turbo generator No. 3.
The decrease in the ESDPP-1 ICUF is due to crisis phenomena in the economy of large industrial enterprises’ consumption, the purchase of electricity from lower-tariff energy sources (HPPs) due to the abnormal increase in water inflow in 2016.
Installed capacity (MW)
Despite the decrease in the ESDPP-1 ICUF owing to the operation of the power units in the optimal mode, a higher degree of HPH use resulted in the reduction of SCEF from 371 g / kWh to 370 g-kWh.
The growth of ICUF at ESDPP-2 is due to an increase in the sales of electricity for export. The SCEF decreased from 394 g / kWh to 393 g / kWh due to the growth of the ICUF.
The growth of APP ICUF is due to the increase in the output of Kapchagay HPP due to the increase in water inflow. The decrease in SCEF is due to the increase in the share of CHPP-2 in the generation of electricity by TPP which has lower specific fuel consumption for electricity sale.
The growth of Aktobe CHP ICUF occurred due to the input of the turbogenerator No. 3.
The increase in SCEF is associated with the operation of the turbogenerator No. 3 in the condensing mode.
The decrease in heat production volumes in 2016 by 2 % (by 108 thousand Gcal) was caused by reduction of the heating load due to the higher temperature of the ambient air compared to climatic temperatures.
Electricity transmission volumes amounted to 12,117.6 mln. kWh, with an insignificant increase to the level of 2015 volumes –12,113.6 mln. tenge (an increase by 4 mln. kWh).
Dynamics of changes in the heat production volumes, thous. Gcal
Losses in grids are reduced owing to implementation of activities on the modernization of grids and ASCAPC in AZhC and MDPGC by 0.8 % and 0.2 %, respectively. However, at the EC REC losses were increased by 0.7 % due to a decrease in transmission volumes by 56 million kWh. In general, the level of losses across all RECs is below the established standard of CRNM PC.
According to the results of 2016, the total length of power transmission lines was 69 203 km, which is by 0.4 % or 240 km higher than the same period.
Electricity transmission volumes (mln. kWh) and losses in grids (in %)
length of power transmissioni lines (km)
Mainly the increase in the length of the lines occurred owing to AZhC:
- implementation of 2016 investment program
- reconstruction of existing grids
- acceptance of power grids of third party organizations to the balance of AZhC
The total volume of electricity sales by ESO for the reporting period amounted to 8,438 million kWh, which is almost at the level of 2015 (growth of 0.3 %).
Despite the increase in the number of consumers, the volume of consumption remains without significant changes for the following reasons:
AES – in respect of industry category, the decline in 2016 compared with facts of 2015 was 2.7 % or 21.97 million kWh due to a slowdown in production growth in industries and service sector; an increase in the average monthly temperature and the transition of consumers to another power supply organization. This decrease is compensated by the increase in the category “population”, the actual increase in 2016 compared with 2015 was 1.4 % or 26.9 million kWh.
ShET – The decrease in consumption occurred in respect of legal entities, mainly in the state-financed organizations and in construction area.
|Number of consumers, incl:||765,373||781,734||16,361||2|
|Sales volume, mln. kWh||5,771||5,767||–4||0|
|Number of consumers, incl:||496,147||498,271||2,124||0|
|Sales volume, mln. kWh||2,643||2,671||28||1|
Coal sales by bogatyr komir, thous. tons
The increase in the volume of coal sales by 3 % (or by 1.2 mln. tons) is due to the increase in demand of consumers from RF, “SDPP-1” LLP and “SDPP-2” JSC.
The stripping ratio for 2016 was 0,696 m³ / ton, at 0,700 m³ / ton in the same period.
Forecast for the future period:
The volume of electricity production in the forecast for 2017–2018 is projected with a gradual increase in relation to the fact of 2016. The increase in electricity production in 2017 by 1 544 million kWh is planned mainly due power plants of “Ekibastuz SDPP-2” JSC and “Ekibastuz SDPP-1” LLP due to export potential.
In the forecast for 2018, electricity production volumes increase by 10 % or 2,360 million kWh in comparison with the plan of 2017.
The volume of heat production in the plan for 2017 is projected with an increase by 6 % against the fact of 2016 mainly owing to an increase in the heat production by “Almaty Power Plants” JSC and a 25 % decrease against the plan for 2017 due to the sale of “Aktobe CHP” JSC.
Electricity transmission and distribution volumes are expected to grow in 2017 due to the growth in MDPGC, EK REC consumers demand and a decrease in 2018 in connection with sale of these assets.
The volume of electricity sales in the forecast for 2017 is expected at the level of 2016 fact. In the forecast for 2018 electricity sales reduces by 2,009 mln. kWh or 24 % due to the sale of “Shygysenergotrade” LLP.
The volume of coal sales in the forecast for 2017 reduces by 1.2 million tons or 3 % below than the fact of 2016.
The volume of coal sales in the forecast for 2018 increases by 6 % or by 2.2 mln. tons by 2017. The volumes of coal production and sales for 2017–2018 provided taking into account the forecasted volumes of electricity production in the RK and RF.
About cost reduction
As part of activities implemented to determine the potential for increasing the value of the company, “Samruk-Energy” JSC together with “Samruk-Kazyna” Fund developed 10 cost optimization initiatives. The following initiatives in the approved Development Plan for 2017–2021 for the amount of 102.8 billion are expected to be implemented, including:
- Reducing the consumption of specific fuel and water for technological needs in the amount of 19.1 bln. tenge;
- Optimization of expenses for FER – energy saving in the amount of 4.2 bln. tenge;
- Optimization of expenses for current repairs in the amount of 2.5 bln. tenge;
- Optimization of administrative expenses in the amount of 1.2 bln. tenge;
- Optimization of capital expenditures for maintenance of production assets- in the amount of 49.2 bln. tenge;
- Optimization of current expenses by 10.1 bln. tenge at implementation of the Integrated Planning System project
- Optimization of current expenses by 8.4 bln. tenge at implementation of the project “Unified Project Management System”
- Optimization of current expenses by 8.1 bln. tenge as a result of the project “Introduction of the new maintenance and repair management model”.
Financial and economic figures
|No.||Indicator, mln. tenge||20151||2016||2017 (forecast)||2018 (forecast)|
|1||Income from sales of products and services provided||183,822||181,310||204,388||249,871|
|1.2.||Sale of electricity by energy supplying organizations||88,215||90,284||94,392||106,363|
|1.4.||Electricity transmission and distribution||32,095||33,448||36,477||41,609|
|1.5.||Chemically treated water sales||1,671||1,662||1,671||1,693|
|1.6.||Building and installation, repair works||0||0||0||0|
|2||Net cost of sales of products and services rendered||128,695||136,127||157,070||180,252|
|2.1.||Net cost of electricity production||83,000||91,658||99,437||111,506|
|2.2.||Net cost of electricity by energy supplying organizations||88,066||88,644||93,304||105,285|
|2.3.||Net cost of heat production||13,430||13,699||16,674||17,973|
|2.4.||Net cost of electricity transmission||25,375||26,506||28,812||31,650|
|2.5.||Net cost of chemically treated water sales||1,645||1,614||1,666||1,703|
|2.6.||Net cost of building and installation, repair works||0||0||0||0|
|2.7.||Net cost of other core operations||111||215||10||11|
|Depreciation of fixed assets and intangible assets||35,290||41,053||43,144||45,089|
|6||Costs related to sales of products and services provided||2,919||3,017||4,550||5,984|
|7||General and administrative expenses||12,199||12,826||12,824||12,216|
|10||Other expenses from non-core operations2||93,088||2,056||176||415|
|11||Share of profit / loss of organizations accounted for using the equity method||–10,173||4,895||3,610||3,356|
|12||Profit (loss) from discontinued operations||5,975||2,494||7,337||0|
|13||Corporate income tax expenditures||4,583||6,521||4,750||9,569|
|15||Total profit attributable to the Group’s Shareholders||–77,835||17,759||10,393||19,321|
1 For comparison, 2014 indicators are recalculated taking into account the reflection of the result of transition from discontinued operations;
2 In the audit report of 2015, the income from “impairment loss compensation” is separated from other incomes, and the impairment loss is divided from the other costs to the separate line “Impairment losses” (net);
3 In the audit report, the currency difference balance of 2016 is reflected in “financial income” section;
4 In the audit report of 2015, foreign exchange losses are reflected in “financial income” item.
Note: Incomes and net cost by types of activities is provided without taking into account elimination.
Income from sales of products and services provided across “Samruk-Energy” JSC Group of Companies in 2016 amounted to 181,310 mln. tenge. The decrease by 1.2 % compared to the same period last year is mainly due to a decrease in revenue from electricity generation.
A significant share of revenues is made up of revenues from the sale of electricity by energy producing companies, production volumes of which amounted to more than 22.5 bln. kWh in 2016
Also, a large share in revenues is occupied by revenues from the sale of electricity by energy supplying organizations, sales of which amounted to more than 8.4 billion kWh in 2016, and from the provision of electricity transmission and distribution services in the amount of 12.1 billion kWh.
Consolidated revenue, mln. tenge
Structure of income for 2016 by core activities
Forecast for the future period:
the sales revenue in the forecast for 2017 is planned in the amount of 204 388 mln. tenge with growth by 13 % by 2016 due to the increase in volumes of electricity production, transmission and heat production.
Income from sales of products and provision of services broken down by producers
|Indicator, mln. tenge||2015 actual||2016 actual||2017 (forecast)||2018 (forecast)|
|Income from sales of products and services provided||183,822||181,310||204,388||249,871|
|“Green Energy” LLP||109||113||116||121|
|“Bukhtarminsk HPP” JSC||2,564||3,503||3,536||3,535|
|“Shardarinsk HPP” JSC||2,085||3,157||2,988||3,528|
|“Moynak HPP” JSC||8,023||9,919||8,669||8,678|
|“Karagandagiproshakht and K” LLP||160||0||0||0|
|Energy Solution center||334||0||0|
|Intercompany balance (elimination)||–99,201||–95,190||–112,915||–122,889|
The main share in the Company’s operating income is made up of “SDPP-1” LLP, C “APP” JSC, “AZhC” JSC, “AlmatyEnergoSbyt” LLP. At the same time, intercompany balances are excluded mainly in respect of energy sales companies at consolidation of revenues from the total amount.
Net cost of products and provision of services
|Indicator, mln. tenge||2015 actual||2016 actual||2017
|Depreciation of fixed assets and amortization of intangible assets||35,290||41,053||43,144||45,089|
|Labor remuneration and related expenses||20,377||22,334||20,110||21,234|
|Cost of purchased electricity||5,349||4,822||10,164||17,094|
|Power transmission services and other services||9,158||10,051||9,247||12,178|
|Repair and maintenance||4,835||3,951||6,776||8,922|
|Taxes except for income tax||5,770||5,955||9,515||11,039|
|Water for process needs||3,933||3,835||4,438||4,898|
|Thrid party organizations services||3,970||4,896||10,806||11,525|
The net cost of as of year-end 2016 amounted to 136,127 mln. tenge, which is 6 % higher than the fact of 2015. However, the net cost excluding controlled expenses (depreciation and taxes) for 2016 amounted to 86,944 mln. tenge, a slight increase in comparison with last year by 1,172 mln. tenge or by 1 %.
The main changes occurred in the following types of expenditures:
Fuel, OL, energy:
The decrease in fuel costs is due to a decrease in production volumes of SDPP-1 by (–2,035) mln. tenge (or 16 % compared to the fact of 2015) due to a decrease in demand. Also, the decrease is due to the increase in ICB between AES and APP taking into account the growth in the output of APP owing to Kapchagay HPP (- KZT2,073 million). At the same time, the expenses for purchasing electricity from RES (+ 919) million tenge are growing. The increase in prices for gas, coal, transportation led to an increase in fuel costs for APP by (+ 1 015) million tenge.
Reduction of repair works in connection with conducted surveys on the actual need for repairs and, accordingly, a change in the schedule of repair work with a shift to the right (EGRES–1, APP).
Transmission and sale related services:
The increase in expenditures for KEGOC services is due to the annual increase in tariffs (transmission services tariff growth by 7 %, dispatching services tariff increase by 27 %), as well as an increase in the output of Kapchagay HPP of “APP” JSC due to the high water content of the water reservoir in 2016 (in the case of production at other CHP, KEGOC services are not added to an ultimate consumer).
Net cost structure by core business lines
Labor costs for production personnel:
The increase is due to annual indexation under the collective agreement of subsidiaries and affiliates.
Other production works, services andlease:
Increase in respect of the item “Maintenance of production equipment” is connected with conclusion of the agreement for SS–220/35 kV substation “WPP Ereymentau1” maintenance with “FWPP” LLP in 2016.
Increase in costs for raw materials and supplies (chemical agents and beaters) at “SDPP-1” LLP, due to replacement of materials on filters of the regenerator. Also in comparison with 2015 there was a rise in price of purchased services and materials.
Forecast for the future period: In the forecast for 2017, the cost of sales and services rendered increases by 20 943 mln. tenge (15 %). The main increase is associated with an increase in fuel costs, due to the increase in electricity production and the annual increase in prices for purchased fuel, depreciation due to assets upgrading and purchased electricity from renewable energy sources. And also growth is connected with an annual increase in staff salaries taking into account the inflation factor and an increase in prices for services rendered by third-party organizations. In the forecast for 2018, expenses for net cost are also increasing due to the above reasons.
|Indicator, mln. tenge||2015||2016||2017 (forecast)||2018 (forecast)|
|The costs of labor and social benefits of personnel associated with sales process||12||13||13||14|
|Taxes other than income tax||1||1||2||2|
|Other services and works associated with sales||2,906||3,003||4,536||5,969|
|Other sales costs||0.03||0.04||0.05||0.05|
According to results of 2016, sales costs increased by 98 mln. tenge in connection with “ESDPP-1” LLP electricity export to Kyrgyzstan.
In the forecast for 2017, the increase in sales costs compared to the fact of 2016 will be 51 %, a significant increase is due to an increase in the cost of dispatching services and the organization of balancing the electricity production and consumption by “ESDPP-1” LLP due to increased volumes of electricity generation and export of electricity to Kyrgyzstan.
|Indicator, mln. tenge||2015 actual||2016 actual||2017 actual||2018 actual|
|Remuneration of labor and related expenses||4,300||4,712||5,004||5,291|
|Consulting and other professional services||1,019||1,615||1,323||779|
|Taxes other than income tax||893||1,024||725||784|
|Depreciation of fixed assets and amortization of intangible assets||1,196||1,187||1,083||1,095|
|Business trip and representation expenses||245||221||248||262|
Administrative expenses for the end of 2016 amounted to 12 826 mln. tenge, which is higher than the fact of 2015 by 628 mln. tenge or 5 %, due to the annual indexation of wages under the collective agreement of SA, as well as an increase in consulting expenses in 2016 related to transformation project.
Forecast for the future period:
In the forecast for 2017 administrative expenses remain at the level of 2016 and amount to 12 824 mln. tenge.
In the forecast for 2018 administrative expenses will decrease due to the exclusion of assets intended for sale.
|Indicator, mln. tenge||2015||2016||2017 (forecast)||2018 (forecast)|
1 In the audit report of 2015 financial expenses are shown together with a foreign exchange loss.
According to results of 2016 interest expenses amounted to 19,218 mln. tenge, which is lower than the actual value for 2015. The decrease was mainly in HO and Moynak HPP due to the strengthening of the national currency from 340.01 tenge / US dollar as of December 31, 2015, drop in exchange rate as of December 31, 2016 the rate was 333,29 tenge / US dollar.
Forecast for the future period:
In the forecast until 2017 interest expenses grows taking into account the increase in the interest rate on the bonded (in US dollars) loan of the HO taking into account the refinancing of the currency loan into a loan in national currency.
Share of profits of joint ventures and associated companies
|Indicator, mln. tenge||2015 actual||2016 actual||2017 plan||2018 plan|
|Share of profit of joint ventures and associated companies||–10,173||4,895||3,610||3,356|
|“Ekibastus SDPP-2” JSC||–12,768||788||–1,442||–3,141|
|“Balkhash TPP” LLP||–2,463||–1,913||0||0|
The shared profit for the year ended 2016 was 4,895 mln. tenge, increased by 15,068 mln. tenge compared to the same period.
Dynamics of increase in shared profit, mln. tenge
The main changes occurred in the following assets:
ESDPP-2 – an increase by 13 553 mln. tenge compared to the previous year is due to the following factors:
- an increase in income from core operations by 2 809 mln. tenge, owing to the increase in electricity generation, revenue growth by 7 480 mln. tenge in connection with exports to the Russian Federation, and a decrease in revenues due to reduction in the weighted average tariff by 4 671 mln. tenge taking into account the low tariff for electricity exports to the Russian Federation;
- reflection in 2015 of the negative exchange rate difference under the project “Expansion and reconstruction of Ekibastuz SDPP-2 with installation of the power unit st. No.3” according to the loan agreement in the amount of 18 883 mln. tenge.
Forum Muider – a 961 mln. tenge increase was mainly due to the absence of foreign exchange losses in 2016 compared to 2015, reduction in interest expenses and lowering of depreciation for revaluation to fair value (adjustment at the consolidation level).
Balkhash TPP – reduction in BTPP loss by 551 million tenge is due to the positive exchange rate difference for 2016.
In the plan for 2017–2018 the decrease in profits from companies accounted for under the equity method is mainly due to the increase in interest expenses of “Ekibastuz SDPP-2” JSC.
Profit (loss) from discontinued operations
|Indicator, mln. tenge||2015 actual||2016 actual||2017 plan|
|Profit from discontinued operations||5,975||2,494||7,337|
|“Aktobe CHP” JSC||348||397||391|
|“East Kazakhstan REC” JSC||1,965||1,502||1,509|
|“Tegis Munay” LLP||–201||–28||–28|
|“Mangyshlak Munay” LLP||–22||–187||–157|
|Income from sale of ZhSDPP||2,469||0||0|
|Intercompany balance (elimination)||267||218||3,091|
According to the results of the year assets intended for sale including “Tegis Munay” LLP, “Mangyshlak Munay” LLP, “EK REC” JSC, “Shygysenergotrade” LLP, “MDPGC” JSC, “Aktobe CHP” JSC were shown in the profit from discontinued operations in 2016. For comparability purposes, the year 2015 was retrospectively recalculated taking into account the classification of these assets as assets subject to sale. The decrease in 2016 is due to the fact that in 2015 the profit from the sale of “ZhSDPP” LLP for 2 469 mln. tenge was reflected, as well as due to a decrease in profit in respect of “Shygysenergotrade” LLP in 2016 by 1,110 mln. tenge in connection with insufficiency of tariff level. The increase in profit in 2017 was due to the increase in profit in respect to “Shygysenergotrade” LLP by 2,610 mln. tenge in connection with planned tariff increase to 12,151 tenge/ kWh, as well as due to the inclusion of depreciation of assets intended for sale into discontinued profit.