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Financial
Sustainability
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Tariff
Policy

KEGOC’s operations are governed by the Law of Kazakhstan on Natural Monopolies, according to which the services provided by KEGOC as the natural monopoly are as follows:

  • electricity transmission in the NPG;
  • technical dispatching of electricity supply and consumption in the grid;
  • electricity generation and consumption balancing.

The Committee for Regulation of Natural Monopolies of the Ministry of National Economy of the Republic of Kazakhstan approved the tariffs, tariff estimates for regulated services of KEGOC for 2021-2026 (by order No. 79-OD dated 16 August 2021) effective 1 October 2021 to 30 September 2026 in the following rates:

KZT/kWh 01.10.2021-30.09.2022 01.10.2022-30.09.2023 01.10.2023-30.09.2024 01.10.2024-30.09.2025 01.10.2025-30.09.2026
           
Electricity transmission in the power grid 2.797 2.848 3.004 3.106 3.134
Technical dispatching of the electricity supply and consumption in the grid 0.306 0.314 0.333 0.348 0.355
Management of electricity generation and consumption balancing 0.098 0.102 0.105 0.108 0.110

Based on KEGOC’s application, the Committee on Regulation of Natural Monopolies of the Ministry of National Economy of the Republic of Kazakhstan (Order No. 130-OD dated 27 August 2022) approved the adjustment of tariff estimates for KEGOC’s regulated services for the first regulated period (from 1 October 2021 to 30 September 2022).

Meanwhile, the Committee for Regulation of Natural Monopolies of the Ministry of National Economy of the Republic of Kazakhstan (Order No. 67-OD dated 22 April 2022) approved the compensatory tariffs for regulated services of KEGOC effective 1 June 2022 to 31 May 2023.

KEGOC has challenged in court this decision of the Committee for Regulation of Natural Monopolies of the Ministry of National Economy of the Republic of Kazakhstan. In accordance with the provisions of the current legislation the order has been suspended for the duration of the trial.

Analysis of
Financial and Economic
Indicators

Plan vs Actual Analysis

KZT mln 2022 plan 2022 actual Deviation Main reasons for deviations
         
Consolidated income 245,042.9 227,027.3 92.6%  
operating income 236,201.2 217,255.5 92.0% Failure to fulfil the plan is mainly due to the decrease in:
  • income from the sale of balancing electricity on the Kazakhstan balancing market by KZT 23,725.8 million as a result of non-commissioning of the balancing market.
  • income from electricity sale to settle unscheduled electricity flows to Central Asia by KZT 1,468.9 million;
  • dispatching by KZT 282.5 million due to decrease in actual volumes by 906.6 million kWh;
  • income from services on balancing of generation and consumption of electricity by KZT 212.8 million as a result of decrease in actual volumes by 2,107.0 million kWh;
  • income from sale of power control services by KZT 169.1 million as a result of decrease in actual volumes.
At the same time, the plan was exceeded in terms of income:
  • on electricity transmission by KZT 5,994.5 million due to increase in actually paid volume by 2,108.0 million kWh.
  • from sale of electricity to compensate for hourly unscheduled deviations of the actual interstate balance power flows by KZT 3,914.5 million.
Consolidated expenses 221,608.1 194,559.3 87.8%  
cost of sales 195,712.7 166,355.9 85.0% Decrease of 15.0% is mainly due to:
  • lack of actual expenses for purchase of balancing electricity on the Kazakhstan balancing market by KZT 23,725.8 million as a result of the non-commissioning of the balancing market.
  • reduction of expenses for technical losses of electricity by KZT 4,480.6 million due to decrease in actual volumes by 504.1 million kWh the expenses decreased by KZT 4,240.9 million as well as due to decrease in the weighted average price from 8.41 to 8.33 KZT/kWh the expenses decreased by KZT 239.7 million;
  • decrease in property tax by KZT 3,676.5 million due to changes in assets classifier;
  • reduction in depreciation by KZT 4,143.5 million due to revision of assets useful life since 1 September of the current year.
  • reduction in costs for the purchase of electricity to settle the unplanned overflows in Central Asia by KZT 1,468.9 million.
At the same time, compared with the planned figures, the expenses increased on electricity purchase to compensate for the hourly deviations of the actual interstate balance power flows by KZT 9,995.8 million due to increase in the actual volume of electricity and the actual average weighted price.
general and administrative expenses 9,552.6 9,020.4 94,4% Decrease as a result of the existing savings on current expenses
selling expenses 314,6 310,4 98.6% Decrease as a result of the existing savings on current expenses
Operating
profit		 30,621.3 37,993.9 124.1%  

Analysis of actual income and expenses in 2022 vs 2021

KZT mln 2022 plan 2022 actual Deviation Main reasons for deviations
         
Consolidated income 199,424.1 227,027.3 113.8%  
operating income 186,443.1 217,255.5 116.5% Growth by 16.5% is mainly from income from regulated services by KZT 27,559.0 million resulted from the growth of tariffs and rendered volumes, as well as income from the sale of electricity to compensate hourly deviations of the actual interstate balance power flows by KZT 3,390.1 million. At the same time, the income decreased from sale of power control services by KZT 232.9 million.
КConsolidated expenses 152,651.8 194,559.3 127.5%  
cost of sales 120,682.9 166,355.9 137.8% Growth by 37.8% is mainly due to the increase in depreciation expenses by KZT 24,399.9 million and property tax expenses by KZT 3,100.2 million as a result of fixed assets revaluation, payroll expenses with deductions by KZT 6,213.1 million, expenses for purchase of electricity to compensate for hourly deviations of the actual interstate balance power flow by KZT 6,236.7 million.
general and administrative expenses 8,539.8 9,020.4 105.6% Decrease as a result of the existing savings on current expenses
selling expenses 381.2 310.4 81.4% Decrease as a result of the existing savings on current expenses
Operating
profit		 48,895.2 37,993.9 77.7%  

Dynamics of financial and economic indicators

KZT bln
Dynamics of financial and economic indicators

Ratio analysis

Indicator 2020 2021 2022
       
ROACE, % 9.48 7.7 4.2
EBITDA, KZT mln 103,391.9 93,865.0 102,519.6
Loan agreement covenants
Current liquidity ratio, not less than 1 1.69 1.61 1.89
Covenants established by Samruk-Kazyna JSC
Debt/EBITDA, not more than 3.80 1.49 1.82 1.53
Debt/Capital, not more than 1.40 0.32 0.23 0.24

During 2022, the established financial stability indicators and covenants were not violated.

Economic value
generated and distributed

Economic value distribution

KZT mln 2020* 2021 2022
       
Total capitalization 663,590.51 908,336.27 809,916.87
  • equity capital
 502,556.47 737,136.82 653,565.16
  • borrowed funds
 161,034.04 171,199.45 156,351.70
Funds from the government - - -
Economic value generated 185,852.94 199,424.10 227,003.95
  • operating income
179,097.56 186,443.14 217,255.55
  • financial income
5,480.24 5,368.22 5,726.12
  • other income
1,275.13 7,612.74 4,022.29
Economic value distributed: 170,101.47 201,789.23 217,270.65
  • payroll expenses
 21,101.73 23,672.49 26,755.43
  • expenses on taxes and duties to the national budget
 21,334.15 14,047.26 18,026.52
  • payments to capital providers
 43,952.81 53,200.01 30,309.24
  • charity and sponsor support*
 - - -
  • other operating expenses
77,761.28 99,492.06 136,625.19
  • other non-operating expenses*
 5,951.50 11,377.43 5,554.26
Profit after tax for the year from discontinued operations 4,967.04 13,471.47 -
Economic value of distribution 20,718.50 11,106.33 9,733.30

* recalculated with the FSC RES alienation taken into

Balance analysis

Indicator, KZT mln 2018 2019 2020 2021 2022 2022/2021
             
Non-current assets 698,081.7 659,175.9 695,192.5 1,019,820.4 873,932.8 -14.3%
Current assets 57,769.0 97,111.0 116,820.1 73,396.9 112,679.4 53.5%
Total assets 755,850.7 756,987.7 812,012.6 1,093,217.3 986,612.2 -9.8%
Equity 472,693.8 481,838.0 502,556.5 737,136.8 653,565.2 -11.3%
Non-current liabilities 236,958.6 230,808.2 239,766.9 310,396.6 273,569.6 -11.9%
Current liabilities 46,198.3 44,341.5 69,689.2 45,683.9 59,477.4 30.2%
Total liabilities 283,156.9 275,149.7 309,456.1 356,080.5 333,047.0 -6.5%
Total equity and liabilities 755,850.7 756,987.7 812,012.6 1,093,217.3 986,612.2 -9.8%

Goal 3 Achievement Indicators

Name of KPI 2018 actual 2019 actual 2020 actual 2021 actual 2022 plan* 2022 actual
             
EBITDA, KZT bln 81.2 88.5 108.4 93.9 96.4 102.5
TSR (total shareholder return),% indicators defined in December 2021 3.8 -10.7

* the planned values set by Business Plan for 2022-2026

Profitability

KZT bln
Profitability