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PJSC RusHydro (HYDR)
PJSC RusHydro: RusHydro announces full year 2018 RAS results
28-Feb-2019 / 15:01 CET/CEST
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer / publisher is solely responsible for the content of this
announcement.
RusHydro announces full year 2018 RAS results
February 28, 2019. Moscow, Russia. PJSC RusHydro (MOEX, LSE: HYDR; OTCQX:
RSHYY) announces its non-consolidated financial results under Russian
accounting standards (RAS) for the full year ended December 31, 2018.
Key highlights:
- Net profit - RUB 36,726 mn (+2%);
- EBITDA - RUB 82,498 mn (+6%);
- Since July 1, 2017, surcharge (premium) to capacity prices in first and
second price zones to attain base level of end-user tariffs in the Far East
of Russia* in reflected in PJSC RusHydro's revenue and operating expenses.
In 2018 the surcharge amount was RUB 35,032 mn, in 2017 - RUB 23,995.
Excluding the effect of surcharge revenue and operating expenses
(hereinafter):
- Revenue - RUB 127,781 mn (+6%);
- Operating expenses - RUB 61,815 mn (+3%).
Key financials for 2018/2017 under RAS excluding the effect of surcharge (in
RUB mn)
2018 2017 chg 4Q'18 4Q'17 chg
Revenue (excl. 127,781 120,702 6% 31,724 31,245 1%
surcharge)
Operating expenses (61,815) (59,812) 3% (18,457) (17,955) 3%
(excl. surcharge)
Operating profit 65,966 60,890 8% 13,267 13,290 -0.2%
EBITDA** 82,498 77,570 6% 17,395 17,517 -1%
Net profit 36,726 36,149 2% -788 2,605 -130%
Net profit 43,072 44,212 -3% 6,057 12,019 -50%
(adj.)***
Revenue
In 2018, revenue increased by 6% or RUB 7,079 mn as electricity production
by PJSC RusHydro's HPPs increased on the back of higher inflows to
reservoirs of the Volga-Kama cascade in the first half of the year and to
reservoirs in Siberia in the second half of the year.
Revenue breakdown (RUB mn)
2018 2017 chg 4Q'18 4Q'17 chg
Electricity sales 85,059 78,900 8% 20,067 19,595 2%
Capacity sales 42,327 41,398 2% 11,562 11,531 0.3%
Other sales 395 404 -2% 95 119 -20%
TOTAL 127,781 120,702 6% 31,724 31,245 2%
Operating expenses
Operating expenses in 2018 increased by 3% to RUB 61,815 mn as compared to
2017 as a result of the following factors:
- purchased electricity and capacity (RUB 1,221 mn) following growth in
unregulated capacity contracts;
- water tax rate increase (RUB 423 mn) following tariff growth and increase
in electricity production;
- property tax (RUB 396 mn) following decrease of tax allowance on movable
assets;
- repairs and maintenance (RUB 132 mn) in accordance with maintenance
schedule.
Operating expenses breakdown (in RUB mn)
2018 2017 chg 4Q'18 4Q'17 chg
Depreciation 16,532 16,680 -1% 4,128 4,227 -2%
Purchased electricity and 8,236 7,015 17% 2,346 1,943 21%
capacity
Labor expenses, taxes and 7,448 7,438 0.1% 2,198 2,031 8%
contributions
Property tax 7,140 6,744 6% 1,621 1,641 -1%
Repairs and maintenance 3,861 3,729 4% 1,670 1,725 -3%
Other third-party services 3,835 4,286 -11% 1,268 1,295 -2%
Power system services 3,018 2,952 2% 765 738 4%
Rent 1,938 1,933 0.3% 482 602 -20%
Water tax 1,887 1,464 29% 417 362 15%
Insurance expenses 1,756 1,660 6% 511 517 -1%
Security expenses 1,748 1,712 2% 439 425 3%
Other 4,416 4,199 5% 2,612 2,449 7%
TOTAL 61,815 59,812 3% 18,457 17,955 3%
Profit
Operating profit in 2018 increased by 8% as compared to 2017 and amounted to
RUB 65,966 mn.
RusHydro's net profit for the reporting period increased by 2% to RUB 36,726
mn.
Net profit adjusted for non-cash items decreased by 3% to RUB 43,072 mn. The
difference between the reported and adjusted net profit is attributed mainly
to the following non-cash effects:
- loss (net) on provision for impairment of financial investments in the
amount of RUB 6,453 mn;
? loss (net) on reversal of bad debt reserves in the amount of RUB 1,758 mn;
- gain on mark-to-market revaluation of financial investments in the amount
of RUB 1,448 mn;
- gain (net) from other reserves in the amount of RUB 307 mn.
- gain (net) on provision for impairment of assets in the amount of RUB110
mn.
RusHydro's financial position as of December 31, 2018
The Company's total assets increased by RUB 53,628 mn as of December 31,
2018, or by 5% as compared to the beginning of the year, reaching RUB
1,036,807 mn.
As of December 31, 2018, total liabilities increased by 18% or RUB 28,109 mn
and amounted RUB 185,542 mn.
The Company's debt portfolio as compared to December 31, 2017 increased by
21% and reached RUB 147,946. Long-term loans comprise 87% of the total
portfolio.
The Company's equity in 2018 increased by 3% to RUB 851,206 mn against RUB
825,684 mn as of the beginning of the reporting year.
The full financial statements are available on the Company's website at:
http://www.eng.rushydro.ru/investors/reports [1]
The Group's consolidated financial results in accordance with International
Financial Reporting Standards will be published on March 14, 2019.
* In July 2017, the Resolution of the Russian Government No. 895 "On
reaching basic rates (tariffs) for electric power (capacity) in the
territories of the Far East Federal region (the "Far East")" became
effective, under which rates for consumers in the territories of the Far
East should be reduced starting from 1 January 2017 to the basic level (RUB
4.00 / kWh). According to the Resolution of the Russian Government No.
1614-r of 28 July 2017, PJSC RusHydro was appointed as the recipient of a
premium to the price for capacity provided by the Company in the price zones
of the wholesale market under CCS agreements. The premium to the price for
capacity is set in order to achieve the basic level of rates (tariffs) for
electricity (capacity) planned for the next regulation period in the Far
East constituent regions. Within the amounts defined by Resolution No.
1615-r of the Russian Government dated 28 July 2017, the Company translates
the collected amounts of margin in the form of free-of-charge targeted
contributions to the budgets of the respective regions. The Group companies
being guaranteeing suppliers will receive compensation for the shortage of
income related to the reduction of rates, through subsidies from the Far
East constituent regions. In November 2017, according to the Resolution of
the Russian Government No. 2527-r of 15 November 2017 the rate for consumers
in the territories of the Far East basic was set at RUB 4.30 / kWh.
** EBITDA calculated as gross profit before depreciation.
*** Net profit adjusted for the mark-to-market revaluation of listed equity
stakes, reserves for financial investment impairment, assets and potentially
uncollectible accounts receivable, contingencies This indicator is not
reported in the official financial statements under RAS and has been
calculated and put into the press release for reference.
About RusHydro
RusHydro Group is one of Russia's largest generating companies. RusHydro is
the leading producer of renewable energy in Russia with over 400 generating
facilities in Russia and abroad. The company also manages a number of R&D,
engineering and electricity retail companies. Group's thermal assets are
operated by subsidiary - RAO Energy System of East in the Far East of
Russia. Total electricity generation capacity of the Group is 39.4 GW, heat
capacity - 18.9 thousand GCal/h.
Russian Federation owns 60.56% in RusHydro, the rest is held by other
institutional and individual shareholders (over 360,000). The company's
stock is traded on Moscow stock exchange (MOEX). Company's GDRs in the IOB
section of LSE, ADRs - in OTCQX.
For more information:
Investor Relations Department
Tel. +7 (495) 225 3232 ext. 1607, 1319, 1304
ir@rushydro.ru
The information in this press release may contain projections or other
forward-looking statements regarding future events or the future financial
performance of RusHydro. You can identify forward looking statements by
terms such as "expect," "believe," "anticipate," "estimate," "intend,"
"will," "could," "may" or "might," the negative of such terms or other
similar expressions. We wish to caution you that these statements are only
predictions and that actual events or results may differ materially from
these statements. We do not intend to update these statements to reflect
events and circumstances occurring after the date hereof or to reflect the
occurrence of unanticipated events. Many factors could cause the actual
results to differ materially from those contained in our projections or
forward-looking statements, including, among others, general economic
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