Analysis of profitability of production of energy companies of the Irkutsk region

. Energy is a life support industry that determines the state of the economy of the state as a whole. The energy sector is: 1. the infrastructure of all sectors of the economy and the life support system of the population; 2. business, which provides about 30% of GDP, 50-60% of the income of the country's budget system and up to 65% of all foreign exchange earnings; 3. the geopolitical factor determining the role of Russia in the international arena. Profitability of production is an important economic category of the market economy, knowledge of the nature of which allows the most successful regulation of the economy of individual enterprises, industries and the national economy as a whole. This indicator is often used in financial and investment analysis. The study of the effectiveness of the financial and economic activities of the organization, the identification of cause-and-effect relationships between the factors used and the results obtained create the basis for a scientifically based prediction of its state in the future when planning and forecasting. In the article, to carry out a factor analysis of the profitability of production, the author has developed a 3-factor model. The article reveals the influence of factors affecting the change in the profitability of production of energy companies of the Irkutsk region and gives the author's methodological approaches for its calculation (methods of factor analysis developed by Filatov E.A.). The article presents the author's analytical, systematized statistical material for the analysis of key indicators revealing the impact on the change in the profitability of production of energy companies of the Irkutsk region regions of the Russian Federation.


Introduction
The energy complex of the Irkutsk region is one of the largest in the Russian Federation.It is represented by objects of "big energy", which are mainly part of the structure of "EuroSibEnergo", as well as objects of "small energy", which was previously referred to as "communal".The structure of "small energy" includes distribution electric and thermal networks, municipal, one thermal power plant, boiler houses, diesel power plants, renewable energy sources with various forms of ownership.In addition to the listed facilities, the energy complex of the Irkutsk region also includes private and state-owned companies for the extraction and processing of fossil energy resources operating in various districts of the region [1].
In Russia, among the subjects of the federation, the Irkutsk region has the highest energy potential, where there are large power plants with a total capacity of 13.6 gigawatts (6-8% of the country's energy capacity).At the same time, electricity generation per capita in the Irkutsk region is one of the highest in the world.In terms of electricity generation, the Irkutsk power system ranks second in Siberia, behind Krasnoyarsk.About 20% of the generated electricity is transmitted outside the region, mainly to the Republic of Buryatia and the Trans-Baikal Territory.At the same time, due to the capacities of the Irkutsk power system, 20% of the total electricity demand of Transbaikalia is covered.About 7.5 billion kilowatts per hour are transmitted through the Krasnoyarsk power system for the needs of the unified power system of Siberia [2].

Research question
The issues of finding ways to achieve stability, economic reliability and sustainable development of the economy of electric power industries are devoted to the works of domestic scientists and specialists dealing with the problems of the development of the fuel and energy complex of Russia, such as: Shmatko S. I., Veselov F. V., Kurilov A.E., Makarova A.S. and others.
The objective and most perfect measure of the degree of efficiency of production of energy companies is the analysis of profitability of production.
The most important feature of energy production is that companies in this industry work directly for the consumer without creating inventory and accounting for work in progress, and the expenses incurred during the reporting period are completely written off to the cost of energy generated.Therefore, there is no need to distribute them between finished products and work in progress.
The coincidence in time of the phase of energy production with the phase of its consumption depends on the mode of energy consumption.In some periods, the energy demand may increase or decrease, which affects the operating mode of the stations.In order to maintain a constant correspondence between energy consumption and its production, to ensure uninterrupted supply of electricity to consumers at power plants, it is necessary to have reserve production capacities.The additional costs associated with their maintenance are included in the cost of energy.The cycle of energy production at the power plant ends with its transmission through the power grid lines to consumers.In the process of transmission, about 8-9% of electricity is spent on transportation and conversion and compensates for commercial losses.
The procedure for calculating the cost price is influenced by the nomenclature of the products produced.In the energy sector, some enterprises produce one type of product (electricity), while others produce two (electric and thermal energy).In the first case, the cost is determined by the total amount of expenses incurred, in the second -they must be distributed among individual types of energy [3][4][5].
The questions devoted to the comparative evaluation of various methods of evaluating the effectiveness of companies, and the urgent need to resolve them, indicate the relevance and practical significance of the chosen topic of the article.

Materials and methods
For factor analysis of the author's 3-factor model of profitability of production, four indicators were used: net revenue, net profit, value of total assets, cost of production.
Further, based on the methods of deterministic (functional) factor analysis developed by Filatov E.A. [6], we will assess the degree of influence of three factors on the change in the profitability of production of energy companies in the Irkutsk region of the Russian Federation.
The initial data for an alternative factor analysis of the profitability of the production of energy companies of the Irkutsk region of the Russian Federation are presented in Table 1 based on data from 4 statistical bulletins of Irkutskstat (1.Financial results of the organizations.Volume 2 -large and medium-sized organizations.2019; 2. Financial results of the organizations' activities.Volume 3 -Small enterprises.2019; 3. Financial results of the organizations' activities.Volume 2 -large and medium-sized organizations.2020; 4. Financial results of the organizations' activities.Volume 3 -Small enterprises.2020).
The initial formula derived by the author for factor analysis of profitability of production will have the following form (formula 1): The author's model of profitability of production consists of 3 factors: F 1 -ROA -return on assets, calculated as the ratio of net profit (NP) to the cost of total capital (TA).This indicator is important for evaluating the effectiveness of all assets of the enterprise.
F 2 -CIA -capital intensity (resource intensity) assets is the ratio of the value of all assets (TA) per unit volume of sales of products, goods (NR).Capital intensity is an indicator that is the inverse of the asset turnover ratio (or resource efficiency ratio).This indicator is important for evaluating the effectiveness of operational and investment activities [7,8].where: * 0 -past (base) period (year) taken as a basis for comparison; ** I -reporting (current) year; *** ∆change for the period is calculated as the difference between the fact and the plan (I -0).F 3 -SOCR -the author introduced the indicator sales-on-costs ratio into scientific circulation, which is calculated as the ratio of sales income (revenue) (NR) per unit cost (COP).This indicator shows the ratio of the received revenue from sales (NR) to the amount of funds spent on its receipt (cost -COP).This indicator is important for evaluating the efficiency of production.
The resulting indicator -POP -profitability of production is calculated as the ratio of net profit to cost.This indicator shows how much the company has net profit (NP) from one monetary unit of costs (COP).
Based on the data in Table 1, it can be seen that: -the return on assets of energy companies of the Irkutsk region in 2019 was 5.83%, then in 2020 it was 4.35%, a decrease of -1.48 over the study period%; -the capital intensity of the assets of energy companies of the Irkutsk region in 2019 was 232.71%, then in 2020 it was 275.27%, an increase of +42.56 over the study period%; -the sales-on-costs ratio of energy companies of the Irkutsk region in 2019 was 124.85%, then in 2020 it was 125.61%, an increase of +0.76% over the study period.
The resulting indicator of the author's model of profitability of production of energy companies of the Irkutsk region in 2019 was 16.94%, then in 2020 it was 15.05%, a decrease of -1.89% over the study period.
The cumulative deviation of the resulting indicator (∆POP) is determined by the formula 2: The algebraic sum of the influence of factors must necessarily be equal to the total increase in the effective indicator.The absence of such equality indicates errors in calculations.
Next, we will consider 10 methods of deterministic factor analysis developed by Filatov E.A.
Auxiliary data on the author's comparative coefficients for factor analysis are presented in Tables 2,  3.

Factorial factors Value
B 2 A 4 * A 6 0.840241 10 author's methods of factor analysis are presented in Table 4, in which the result is equal to the product of the main part of the formula and the corresponding correction coefficients.Table 4. Methods of alternative factor analysis using comparative coefficients.

No. formulae formulas / calculations the main part of the formula adjustment factors
1.1 As can be seen from Table 4, the author's methods 1.1 and 1.2, 2.1 and 2.2, 3.1 and 3.2, 4.1 and 4.2, 5.1 and 5.2, based on the influence of correction coefficients, are mirror to each other.

Results
The result for methods 1.1, 2.1, 3.1, 4.1, 5.1 is presented in Table 5, the result for methods 1.2, 2.2, 3.2, 4.2, 5.2 is presented in Table 6.As can be seen from the final result of Tables 1, 5, 6, the purpose of the analysis is achieved -the determination of the influence of factors is disclosed without deviations.
The final change in the profitability of the production of energy companies of the Irkutsk region had a positive impact: -an increase in the capital intensity of assets by +42.56%, caused an increase in the studied indicator by +2.31%; -an increase in the sales-on-costs ratio by +0.76%, caused an increase in the studied indicator by +0.09%.
The final change in the profitability of the production of energy companies of the Irkutsk region had a negative impact: -a decrease in the return on assets by -1.48% caused a decrease in the studied indicator by -4.29%.
The combined influence of three factors led to a decrease in the profitability of the production of energy companies in the Irkutsk region by -1.89%.

Discussion
The initial data for analyzing the structure of the key indicators of the energy industry of the Irkutsk region of the Russian Federation in the context of types of organizations are presented in Table 7 based on data from 4 statistical bulletins of Irkutskstat (1.Financial results of organizations.Volume 2 -large and mediumsized organizations.2019; 2. Financial results of the organizations' activities.Volume 3 -Small enterprises.2019; 3. Financial results of the organizations' activities.Volume 2 -large and medium-sized organizations.2020; 4. Financial results of the organizations' activities.Volume 3 -Small enterprises.2020).During the studied period of time, the final financial result of the aggregate of small enterprises of the energy industry of the Irkutsk region was negative -a slight loss was obtained -expenses slightly exceeded revenues.
In general, the share of small enterprises in the energy sector of the Irkutsk region is only 3%.
The size of the total assets of the Irkutsk region's energy industry increased by +12.6% over the period under study, with official inflation of +4.9%.
As a result of the pandemic that began in 2020 and the subsequent lockdowns, the main financial indicators of large and medium-sized organizations of the energy industry of the Irkutsk region have decreased: -revenues by -5.1%; -final financial result by -15.7%; -cost of production by -6.1%.In general, the structure of key indicators in the context of the types of organizations of the energy industry of the Irkutsk region remained unchanged over the period under study (changes were less than %).
Based on the statistical bulletins of Irkutskstat, we will calculate the final profitability of the production of energy companies of the Irkutsk region in the context of types of organizations (Table 8).

Conclusion
The pandemic of the Covid-19 coronavirus infection caused not only panic among the population, but also a quite tangible crisis in the economy.The energy industry is particularly worth considering.Energy consumption in the considered period of time in the world has significantly decreased [9][10][11].
The energy crisis due to the pandemic has not affected the Russian Federation as much as the countries of Europe and Asia.The Ministry of Energy of the Russian Federation reported that consumption decreased in the sector of mechanical engineering, metallurgy, railway industry, in small and medium-sized businesses, while electricity generation at hydroelectric power plants increased.But it is worth noting that the overall demand in the period under consideration still decreased, which affected wholesale prices and reduced the revenue of generating companies.
Competition between various sources of electricity generation has intensified abroad, in which renewable energy sources have been able to take an advantageous position.In the Russian electric power industry, the Covid-19 coronavirus pandemic has created a number of problems for the energy industry, including falling electricity prices, the risk of increased non-payments and difficulties with the implementation of new projects [12].
If we take the Irkutsk region, then as can be seen from the presented analytical tables 5-8, the situation in the energy industry was negative, but not critical.
Outdated equipment, high costs, shortage of working capital are the main negative internal factors that reduce the efficiency of energy sales activities.Falling demand, inflation, high taxation, lack of payment discipline are the main external factors that put companies in a difficult economic situation.In addition, the results of the activities of energy marketing companies are influenced by the climatic conditions prevailing in the region.To ensure the effective operation of companies, it is necessary to take into account the above external and internal factors in order to develop measures to reduce their negative impact.
It should be noted that the observed significant difference in the levels of electricity costs for individual power systems is largely explained by a number of objective conditions: -differences in the technical level of energy enterprises; -the structure of generating capacities; -features of natural and geographical conditions; -the density of electrical and thermal loads; -technical and economic characteristics of fuel and energy resources; -the level of fuel transportation costs; -share of purchased energy.

Table 1 .
Initial data for factor analysis.

Table 2 .
Multiple comparative coefficients for one factor.

Table 3 .
Multiplicative comparative coefficients for two factors.

Table 7 .
The structure of key indicators of the energy industry of the Irkutsk region in the context of types of organizations, %.

Table 8 .
Profitability of production of companies in the energy sector of the Irkutsk region in the context of types of organizations, %.

Table 8
clearly shows that large and medium-sized companies in the energy sector of the Irkutsk region are significantly more efficient than small enterprises.