BAKU, Azerbaijan, Nov.17
By Tamilla Mammadova – Trend:
Georgia Capital PLC (GCAP) owns 100 percent in Water Utility as of September 30, 2020, Trend reports via the GCAP’s recent report.
According to the report, the 14.9 percent year-on-year decrease in 3Q2020 revenues of Water Utility (down 17.1 percent year-on-year in 9M2020) was primarily driven by a 63.4 percent decrease in energy revenues (down 67.9 percent year-on-year in 9M2020) and a 6.8 percent decrease in water sales revenues (down 10 percent year-on-year in 9M2020).
“As a result, 3Q2020 electricity sales in kWh decreased by 70.6 percent year-on-year (down 66.2 percent year-on-year in 9M2020). Revenue from water supply to legal entities was down 9.3 percent year-on-year to 23.7 million lari ($7.2 million) in 3Q2020 reflecting the effects of COVID-19, however, growing by 46.2 percent quarter-on-quarter following the gradual recovery from COVID-19 lockdown during Mar-May. Overall, 9M2020 revenue from water supply to legal entities was down 14.7 percent year-on-year to 59.2 million lari ($18 million) in 9M2020,” reads the report.
As for the revenue side, the tendency is that revenues from water supply to individuals remained broadly stable at 9.9 million lari ($3.01 million) in 3Q2020 (down by 4.6 percent year-on-year) and at 29.2 million lari ($8.8 million) in 9M2020 (down 2.2 percent year-on-year).
“According to the tariff setting methodology, volume risk does not stay with the company and unearned revenues in the current regulatory period (2018-2020) will be reimbursed through tariff setting in the upcoming regulatory period, effective from January 1, 2021.
As for net interest, GCAP reports its expense was up 78.6 percent year-on-year to 8.6 million lari ($2.6 million) in 3Q2020 and up 56.4 percent year-on-year to 24.4 million lari ($7.4 million) in 9M2020.
Further, in 2020, Water Utility increased its leverage on the back of funds attracted from IFIs and local banks to finance capital expenditures, fully refinanced by the proceeds from $250 million green bond issuance on July 20.
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