"Regional Electrical Networks" JSC represents a crucial link in Uzbekistan's energy sector. The annual report, which received a positive conclusion from the international audit firm PricewaterhouseCoopers, indicates that this period was a financial turning point for the company.
Net revenue from sales demonstrated steady growth, rising from 41,080,583,366 UZS to 48,087,351,348 UZS. Although the cost of goods sold also climbed from 34,740,014,170 UZS to 41,451,107,213 UZS, the management successfully contained operational expenses. Specifically, period expenses were reduced from 7,173,598,904 UZS to 6,918,945,031 UZS.
Consequently, the profit from main activities jumped nearly sevenfold, expanding from 574,975,436 UZS to 4,056,286,516 UZS. One of the most significant changes was observed in the retained earnings. The uncovered loss of 1,596,151,923 UZS recorded at the beginning of the year was fully covered, converting into a positive balance of 1,045,781,569 UZS by year-end.
The company's final net profit surged from 521,797,758 UZS to 2,642,580,930 UZS. Additionally, the return on charter capital ratio stood at 0.31. Despite this strong performance, certain financial risks persist. The absolute liquidity ratio is merely 0.05, pointing to significant strain in short-term solvency. This is likely driven by a sharp spike in receivables, which ballooned from 7,287,426,349 UZS to 13,176,491,871 UZS. Concurrently, the company's long-term bank loans increased from 12,349,822,330 UZS to 13,764,155,525 UZS, signifying active capital investments intended for infrastructure renewal. Indeed, capital investments increased from 2,591,706,111 UZS to 3,559,298,685 UZS.
The overall solvency coverage ratio remains at a healthy 1.91, ensuring the general stability of the balance sheet. The growth of total assets from 30,614,917,441 UZS to 36,543,904,202 UZS solidifies REN's position as one of the major players in the national economy. The primary objective moving forward will be accelerating the collection of receivables and improving current liquidity.
