Following the operating results for 2020, the financial standing of the largest Kazakhstani power holding company is described as stable despite the impact of the COVID-19 pandemic and a significant change in the economic situation. “Samruk-Energy” JSC is in the “green” zone of credit risk.
According to the Debt and Financial Stability Management Policy of “Samruk-Kazyna” JSC, Samruk-Energy determines the credit risk zone every year - “red”, “yellow” and “green”.
A set of measures allowed the company to reduce its debt burden to “green” and mitigate currency risks. For instance, refinancing of foreign exchange liabilities in tenge – “Moynak HPP” JSC in the amount of 148 mln. US dollars, “Ekibastuz GRES-2” JSC circa 100 bn. tenge. As a result, the share of foreign currency liabilities in the loan portfolio was reduced to 1,5%.
Owing to systematic work on debt management from 2018 through 2020, “Samruk-Energy” reduced its debt by circa 92 bn. tenge in balance sheet terms, which is in line with target indicators of financial stability ratios set by the shareholder.
Moreover, the introduction of “cash pooling” mechanism by the company had a positive effect, which enable to centrally manage the cash flows of the group of companies, and use internal resources more efficiently, reduce external debt level and decrease external financing costs.
“Samruk-Energy” financial stability indicators are stable despite the presence of negative factors such as the decline in world prices for energy resources, COVID-19 outbreak, maintaining the level of base rate, high inflationary expectations.
As a reminder, the international rating agency Fitch Ratings confirmed the long-term ratings of “Samruk-Energy” JSC at BB level in 2020, the forecast is Stable, and raised the company's credit rating on an independent basis from B to B +.
“Samruk-Energy” JSC is the largest power holding company in Kazakhstan, 100% owned by “Samruk-Kazyna” SWF JSC. It was established in 2007. Core business: electricity and heat production; transmission, distribution and sale of electricity, power coal mining. The holding company comprises energy and coal enterprises, including “Ekibastuz SDPP-1” LLP, “Ekibastuz SDPP-2 Plant” JSC, “Bogatyr Komir” LLP, “Almaty Power Plants” JSC, “Moynak HPP” JSC, “Shardarinsk HPP” JSC, etc.