Financial
statements
Kazakhstan Electricity Grid Operating Company JSC
As at and for the year ended 31 December 2021 with independent auditor’s report
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2021
| In thousands of Tenge | Notes | 31 December 2021 |
31 December 2020 |
| Assets | |||
| Non-current assets | |||
| Property, plant and equipment | 6 | 976.001.316 | 652.478.444 |
| Intangible assets | 3.165.491 | 3.327.999 | |
| Advances paid for non-current assets | 6 | 5.431.849 | 4.126.292 |
| Deferred tax asset | 25 | – | 159.652 |
| Investment in associate | 7 | 2.278.332 | 2.017.593 |
| Long-term receivables from related parties | 27 | 634.192 | 742.477 |
| Other financial assets, non-current portion | 11 | 32.309.237 | 32.340.094 |
| 1.019.820.417 | 695.192.551 | ||
| Current assets | |||
| Inventories | 8 | 2.590.383 | 2.549.293 |
| Trade account receivable | 9 | 12.991.260 | 28.603.307 |
| VAT recoverable and other prepaid taxes | 3.231.654 | 477.893 | |
| Prepaid income tax | 817.245 | 1.017.708 | |
| Other current assets | 10 | 974.072 | 2.945.237 |
| Other financial assets, current portion | 11 | 40.187.573 | 58.801.720 |
| Restricted cash | 12 | 670.902 | 552.586 |
| Cash and cash equivalents | 13 | 11.933.828 | 21.867.205 |
| 73.396.917 | 116.814.949 | ||
| Assets held for sale | – | 5.126 | |
| Total assets | 1.093.217.334 | 812.012.626 | |
| Equity and liabilities | |||
| Equity | |||
| Share capital | 14 | 126.799.554 | 126.799.554 |
| Treasury shares | 14 | (930) | (930) |
| Asset revaluation reserve | 14 | 569.845.780 | 309.836.582 |
| Retained earnings | 40.492.413 | 65.921.264 | |
| 737.136.817 | 502.556.470 | ||
| Non-current liabilities | |||
| Borrowings, non-current portion | 15 | 35.639.645 | 49.843.453 |
| Bonds payable, non-current portion | 16 | 117.142.516 | 92.717.685 |
| Deferred tax liability | 25 | 151.470.158 | 89.323.835 |
| Long-term payables | 17 | 5.972.684 | 7.651.017 |
| Government grants, non-current portion | – | 29.113 | |
| Lease liabilities, non-current portion | 27 | – | 99.406 |
| Other liabilities, non-current portion | 171.628 | 102.412 | |
| 310.396.631 | 239.766.921 | ||
| Current liabilities | |||
| Borrowings, current portion | 15 | 13.854.307 | 14.334.439 |
| Bonds payable, current portion | 16 | 4.562.983 | 4.138.458 |
| Trade and other accounts payable, current portion | 17 | 18.512.531 | 40.884.883 |
| Contract liabilities | 2.064.346 | 3.336.881 | |
| Government grant, current portion | 18.325 | 30.430 | |
| Lease liabilities, current portion | 27 | 111.895 | 462.359 |
| Taxes payable other than income tax | 18 | 2.403.728 | 2.028.506 |
| Income tax payable | – | 52.818 | |
| Other current liabilities | 19 | 4.155.771 | 4.420.461 |
| 45.683.886 | 69.689.235 | ||
| Total liabilities | 356.080.517 | 309.456.156 | |
| Total equity and liabilities | 1.093.217.334 | 812.012.626 | |
| Book value per ordinary share (in Tenge) | 14 | 2.823 | 1.920 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2021
| In thousands of Tenge | Notes | 2021 | 2020 |
| Continuing operations | |||
| Revenue from contracts with customers | 20 | 186.443.137 | 179.097.563 |
| Cost of sales | 21 | (120.682.903) | (101.920.927) |
| Gross profit | 65.760.234 | 77.176.636 | |
| General and administrative expenses | 22 | (8.539.823) | (7.817.094) |
| Selling expenses | (381.235) | (364.084) | |
| Gain from recovery of loss from revaluation of property, plant and equipment | 6 | 2.869.512 | – |
| Loss from revaluation of property, plant and equipment | 6 | (10.813.536) | (19.210) |
| Operating profit | 48.895.152 | 68.976.248 | |
| Finance income | 23 | 5.368.222 | 5.480.240 |
| Finance costs | 23 | (11.670.429) | (11.200.196) |
| Foreign exchange gain/(loss), net | 24 | 451.045 | (5.309.688) |
| Share of profit of an associate | 7 | 260.739 | 358.447 |
| Income from sale of an asset held for sale | 27 | 2.182.037 | – |
| Other income | 1.739.332 | 876.774 | |
| Other expenses | (563.892) | (622.600) | |
| Accrual of provision for expected credit losses | 8, 9, 10, 11, 12 | 110.078 | 39.913 |
| Profit before tax | 46.772.284 | 58.599.138 | |
| Income tax expense | 25 | (7.607.838) | (10.100.904) |
| Profit for the year from continuing operations | 39.164.446 | 48.498.234 | |
| Discontinued operations | |||
| Profit after tax for the year from discontinued operations | 26 | 13.471.466 | 4.967.037 |
| Profit for the year | 52.635.912 | 53.465.271 | |
| Other comprehensive income Other comprehensive income that will not be reclassified to profit or loss in subsequent periods, net of tax |
|||
| Gain from revaluation of property, plant and equipment | 325.744.754 | – | |
| Income tax effect | 25 | (65.148.951) | – |
| Net other comprehensive income that will not be reclassified to profit or loss in subsequent periods, net of tax | 260.595.803 | − | |
| Total comprehensive income for the year, net of tax | 313.231.715 | 53.465.271 | |
| Earnings per share Basic and diluted profit for the year attributable to ordinary equity holders of the parent (in Tenge) |
14 | 202,45 | 205,64 |
| Earnings per share from continuing operations Basic and diluted profit for the year attributable to ordinary equity holders of the parent (in Tenge) |
14 | 150,63 | 186,53 |
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December 2021
| In thousands of Tenge | Notes | 2021 | 2020 |
| Operating activities | |||
| Profit before tax from continuing operations | 46.772.284 | 65.748.232 | |
| Profit before tax from discontinued operations | 26 | 17.506.488 | – |
| Adjustments to reconcile profit before tax to net cash flows | |||
| Depreciation and amortisation | 36.867.809 | 34.076.993 | |
| Finance costs | 23, 26 | 11.681.665 | 11.205.980 |
| Finance income | 23, 26 | (7.562.497) | (7.146.006) |
| Foreign exchange gain/(loss), net | 24 | (451.045) | 5.309.688 |
| Accrual of provision for expected credit losses | 297.853 | 458.445 | |
| Accrual of allowance for obsolete inventories | 1.074 | 57.028 | |
| Loss from disposal of property, plant and equipment and intangible assets | 151.639 | 372.695 | |
| Gain from recovery of loss from revaluation of property, plant and equipment | 6 | (2.869.512) | – |
| Loss from revaluation of property, plant and equipment | 6 | 10.813.536 | 19.120 |
| Share of profit of an associate | 7 | (260.739) | (358.447) |
| Income from government grants | (30.430) | (30.430) | |
| Working capital adjustments | |||
| Change in inventories | (197.629) | (472.164) | |
| Change in trade accounts receivable | (12.850.642) | (7.404.216) | |
| Change in other current assets | 2.037.418 | (2.325.816) | |
| Change in VAT recoverable and other prepaid taxes | (2.753.788) | 221.035 | |
| Change in trade and other accounts payable | 5.894.563 | 16.526.787 | |
| Change in contract liabilities | (1.245.578) | 1.168.996 | |
| Change in other non-current liabilities | 69.216 | 102.412 | |
| Change in taxes payable other than income tax | 2.400.671 | (1.237.193) | |
| Change in other current liabilities | (324.363) | 142.312 | |
| Cash flows from operating activities | 105.947.993 | 116.435.541 | |
| Interest paid | (1.167.132) | (2.093.727) | |
| Coupon interest paid | (11.538.332) | (8.460.500) | |
| Lease interest paid | (45.050) | (87.769) | |
| Commissions paid on bank guarantees | (990.818) | (966.986) | |
| Interest received | 5.971.573 | 5.405.063 | |
| Income tax paid | (14.309.266) | (13.529.672) | |
| Net cash flows received from operating activities | 83.868.968 | 96.701.950 | |
| Investing activities | |||
| Withdraw of bank deposits | 97.222.309 | 40.103.448 | |
| Replenishment of bank deposits | (93.421.164) | (48.792.359) | |
| Change in restricted cash | – | 4.238.713 | |
| Gain from sale of property, plant and equipment and intangible assets | 203.673 | 196.498 | |
| Purchase of property, plant, equipment and advances paid for property, plant and equipment | (40.214.058) | (30.376.834) | |
| Purchase of intangible assets | (36.653) | (51.273) | |
| Acquisition of debt securities (National Bank notes, bills of Ministry of Finance of the Republic of Kazakhstan) | 11 | (66.747.566) | (117.199.634) |
| Redemption of debt securities (National Bank notes, bills of Ministry of Finance of the Republic of Kazakhstan) | 11 | 78.930.920 | 85.659.159 |
| Repurchase of DSFK bonds by the issuer | 11 | 54.453 | 67.980 |
| Partial return of funds from Kazinvestbank and Eximbank Kazakhstan | 331.697 | 358.558 | |
| Cash and cash equivalent of disposed company (RFC) | 26 | (38.847.799) | – |
| Repayment of loans to employees | – | 564 | |
| Dividends from an associate | 7 | 203.095 | – |
| Net cash flows used in investing activities | (62.321.093) | (65.795.180) | |
| Financing activities | |||
| Issue of bonds | 28 | 25.235.121 | 9.032.407 |
| Dividends paid | 14 | (41.529.578) | (32.746.767) |
| Repayment of borrowings | 28 | (14.614.808) | (6.574.597) |
| Principal repayment of lease liability | 28 | (436.606) | (400.692) |
| Net cash flows used in financing activities | (31.345.871) | (30.689.649) | |
| Net change in cash and cash equivalents | (9.797.996) | 217.120 | |
| Effect of exchange rate changes оn cash and cash equivalents | (115.531) | 460.732 | |
| Effect of accrual of provision оn expected credit losses оn cash and cash equivalents | (19.850) | 10.071 | |
| Cash and cash equivalent, as at 1 January | 21.867.205 | 21.179.282 | |
| Cash and cash equivalents, as at 31 December | 13 | 11.933.828 | 21.867.205 |
Non-cash operations:
- During 2021 the Group capitalized the coupon interest on bonds in the cost of property, plant and equipment in the amount of 1.592.927 thousand tenge (Note 6).
- In January 2021 the Group sold land plots to related party – Samruk Kazyna Construction JSC for the amount of 2.182.037 thousand tenge. In accordance with the agreement on the transfer of property, Samruk-Kazyna Construction JSC undertakes to transfer residential, non-residential (commercial) premises and parking spaces to the Group’s ownership at market value in an amount equivalent to the value of the land plot. Accordingly, this amount was recognized as advances given for non-current assets (Note 27).
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2021
| In thousands of Tenge | Share capital | Treasury shares | Asset revaluation reserve | Retained earnings | Total |
| As at 1 January 2020 | 126.799.554 | (930) | 310.369.243 | 44.670.157 | 481.838.024 |
| Profit for the year | – | – | – | 53.465.271 | 53.465.271 |
| Total comprehensive income | – | – | – | 53.465.271 | 53.465.271 |
| Dividends (Note 14) | – | – | – | (32.746.825) | (32.746.825) |
| Transfer of asset revaluation reserve (Note 14) | – | – | (532.661) | 532.661 | – |
| As at 31 December 2020 | 126.799.554 | (930) | 309.836.582 | 65.921.264 | 502.556.470 |
| Profit for the year | – | – | – | 52.635.912 | 52.635.912 |
| Gain from revaluation of property, plant and equipment, net of income tax (Note 4) | – | – | 260.595.803 | – | 260.595.803 |
| Total comprehensive income | – | – | 260.595.803 | 52.635.912 | 313.231.715 |
| Dividends (Note 14) | – | – | – | (41.529.578) | (41.529.578) |
| Disposal of a subsidiary (Note 26) | – | – | – | (37.121.790) | (37.121.790) |
| Transfer of asset revaluation reserve (Note 14) | – | – | (586.605) | 586.605 | – |
| As at 31 December 2021 | 126.799.554 | (930) | 569.845.780 | 40.492.413 | 737.136.817 |
Download the Consolidated financial statements with notes and Independent auditor's report