IBI-Rating has affirmed the credit ratings of PrJSC «KIROVOGRADOBLENERGO» and its bonds

Rating agency IBI-Rating informs on affirming of the long-term credit ratings of PrJSC «KIROVOGRADOBLENERGO» and its interest-bearing secured bonds of A Series (nominal volume of the issue - UAH 5 million, with redemption in August 2025) and C Series (nominal volume of the issue - UAH 120 million, with redemption in March 2022) at uaBBB grade, the rating outlook is «evolving».

The «evolving» outlook is due to uncertainty about the impact on the Issuer's financial condition of the expected slowdown of business activity, given the deteriorating of the epidemiological situation in the country, as well as the probability of reintroduction of economic and administrative restrictions on economic entities and the population.

In accordance with the Law of Ukraine «About the Electricity Market» dated 01/01/2019, the PrJSC «KIROVOGRADOBLENERGO» has only the distribution function of electrical energy. The Company has the necessary licenses to carry out the above-mentioned activities. The PrJSC «KIROVOGRADOBLENERGO» is a natural monopoly on the territory of Kirovograd oblast, which ensures stability of sales.

Net income of PrJSC «KIROVOGRADOBLENERGO» for the first half of 2020 amounted to UAH 820.7 million, which is almost 12% higher than in the same period of previous year and due to the increase in the main component of revenues - revenues from the sale of electricity distribution services. Taking into account the increase of the net income against the background of relatively stable cost of sales, the company's gross profit in the analyzed period showed significant growth and in January-June 2020 and amounted to UAH 168.4 million (+71.8% compared to the same period last year). The result of the activity of PrJSC «KIROVOGRADOBLENERGO» for the first half of 2020 was a net profit of UAH 77.8 million, which contributed to the increase of retained earnings to UAH 579.2 million.

Due to the reduction of the debt and the improvement of the financial results, the level of debt burden of PrJSC «KIROVOGRADOBLENERGO» decreased by 6 months of 2020 compared to the previous year and is assessed as low. PrJSC «KIROVOGRADOBLENERGO» retains the need for significant amounts of capital investment to upgrade fixed assets, taking into account the need for their continuous modernization in accordance with the legislation of Ukraine.

In order to conduct the analytical research, the materials provided by PrJSC «KIROVOGRADOBLENERGO» have been used, including: annual financial statements for 2017-2019 and 6 months of 2020, background information on the enterprise activities, parameters of the bonds issue, other necessary internal information, expectations of the Rating agency IBI-Rating, as well as the information from the public sources, which the Rating agency considers credible.

Corporate department
For additional information please contact:
Press office of IBI-Rating
(044) 362-90-84