“T Plus” has decided to increase debts and dividends
Energy company “T Plus” will adjust the long-term strategy until 2032 adopted in 2019, laying in it the ability to stably pay dividends, told reporters on December 9, its CEO Andrei Wagner. “The old strategy from 2023 assumed zeros until 2032 – when it was impossible to pay dividends. Due to qualitative changes [в стратегии] opportunity to pay [акционерам] 06/07 billion rubles appeared in a year, ”he said. According to Wagner, the updated strategy is generally ready, but it still needs to be approved by the board of directors, which will be done in 2022.
According to the results of 9 months of 2021, the board of directors of “T plus” recommended to pay interim dividends – 6 kopecks. per share (or about 2.7 billion rubles.), Which is 30% lower than for the same period in 2020. In total for 2020, including basic and intermediate dividends, shareholders received about 8 billion rubles.
According to the results of 2021, “T plus” expects a net profit of 18 billion rubles., Revenue – 400-405 billion rubles., EBITDA – 57 billion rubles.
“T Plus” is a private energy company with 50 CHPs, two power plants and two hydropower plants with a total electricity capacity of 14.6 GW (6% of all power plants in Russia) and 52,000 g of Kal / h for heat (8%). Net income under IFRS in 2020 increased 1.8 times to 20.44 billion rubles., EBITDA decreased by 1.8% to 59.2 billion rubles., Revenue remained at about 2019 level – 383.3 billion RUB
“T Plus” (formerly “KES-Holding”) was collected by Victor Vekselberg and his partners in the late 2000s. from the energy companies TGC-5, TGC-6, TGC-7 and TGC-9, allocated during the reform of the RAO NPP. Vekselberg and his group Renova in 2018 reduced their stake in T Plus from 57.1 to 39.6% (this was necessary due to US sanctions against the businessman). Then Cypriot Merol Trading Limited Boris Hertz, Vekselberg’s partner since the early 1990s, received 17%. The company does not disclose current data on the shareholders’ structure.
Wagner recalled that the old strategy “T plus” assumed “financial failure” in 2024-2025. due to the end of payments under the first program of construction of new generating capacity – the program of contracts for the supply of power (DPM-1, the main construction was carried out in early 2010, after which the units received increased payments from the wholesale energy market for 10 years. “Gazette”).
Now the company has revised its long-term development strategy, intending to avoid such a scenario by improving efficiency, he said. As Wagner explained in an interview with “Vedomosti” in early December, cost reduction will be achieved by eliminating losses in heating networks, digitalization of business and transfer of inefficient CHP from coal to gas (in particular, the company will decommission CHP-1 in Varkut with a capacity of 25 MW). . The current share of coal generation is about 1 percent, said a company spokesman.
All “green” assets of “T Plus”, reminded Wagner, entered in 2020 into a joint venture with the company “Hevel”. 190 MW of solar power plants were transferred there for 16% of Hevel’s shares. According to Wagner, one of the areas of “landscaping” of the “T Plus” business may be the installation of gas stations in the CHP.
According to Wagner, measures to increase efficiency, reduce costs and “greening” the business will require an increase in the investment program, which will peak in 2022-2023. and will amount to 45 billion rubles. per year. Also by 2025, the company plans to complete the main activities of digitization, which in the “T Plus” was previously estimated at 42 billion rubles. By 2025, the company’s debt burden will grow significantly – from the current 107 billion rubles. another 25-30%. “Hopefully the covenants [по кредитам] will not be violated and the debt / EBITDA ratio will remain within 3x, ”Wagner added.
One option for borrowing, according to the CEO of “T Plus”, is to go public (IPO). “We think about it. Now think about the time, the actions that accompany this procedure. But there is no final decision, ”he said. As a prerequisite for this, Wagner called attention to the principles of sustainable development, business digitization and structural changes in the board of directors (now the number of independent directors has increased to 5 out of 11).
In recent years, the main development strategy of T Plus was considered to be the possibility of merging with Gazprom Energoholding (GEH, Russia’s largest energy company). But in November 2021, it became clear that the deal would not happen. “It’s over, there are no negotiations,” Wagner confirmed to Vedomosti in early December.
Vladimir Sklyar, an energy and sustainable development analyst at VTB Capital, noted that heat generation companies need to bear a significant share of the financial burden of decarbonisation as part of the energy transition. “Many of the announced T Plus projects – both coal care, and the focus on CHP in the KAMmod program (the second DPM program -” Vedomosti “), and the interest in increasing the share of gas-fired plants – are absolutely relevant for ESG-oriented investors. But rather modest plans in the field of RES will limit the interest of foreign investors, ”Sklyar said. Russian investors, in his opinion, may be interested in the asset “with the proper consolidation of dividend policies and the presentation of the company’s growth strategy over the horizon of losses from DPM-1.”