DJ PJSC RusHydro: RusHydro Group announces its operating results for the 1Q 2019
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PJSC RusHydro (HYDR)
PJSC RusHydro: RusHydro Group announces its operating results for the 1Q
2019
18-Apr-2019 / 17:02 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 Group announces its operating results for the 1Q 2019
April 18, 2019. Moscow, Russia. PJSC RusHydro (ticker symbol: MICEX-RTS,
LSE: HYDR; OTCQX: RSHYY) announces operating results for the 1st quarter of
2019, of the parent company and subsidiaries of RusHydro Group reflected in
consolidated financial statements.
Key highlights:
- First quarter results reflected certain decrease of output on the back of
extremely high water inflows to the majority of reservoirs of the HPPs in
the first quarter 2018, which were more than twice above the normal level.
Total water inflow in 1Q to the reservoirs of the Volga-Kama cascade was at
the long-run average, while water inflow to the reservoirs in the south of
Russia, Siberia and the Far East was higher than long-run average;
- Decrease in production will be mitigated by growth of spot prices in the
1st and 2nd price zones which have increased 10-11% in 1Q 2019 as compared
to 1Q 2018*;
- Total electricity generation by RusHydro Group including Boguchanskaya
hydropower plant reached 32,694 GWh (+5.6%)**;
- Total production of RusHydro Group's HPPs/PSPPs came in at 19,127 GWh
(-13.6%), production of thermal power plants - 9,722 GWh (+1.5%) and
production of alternative renewable energy facilities - 104 GWh (-9.1%);
- Total electricity production by RusHydro Group's generating facilities in
the Far East amounted to 13,914 GWh (-1.2%), heat output by thermal power
plants amounted to 12,172 thousand GCal (-6.7%) mostly driven by warm
weather conditions;
- Electricity output by RusHydro Group's electricity retail companies in 1Q
2019 amounted to 5,588 GWh (-6.7%);
- Water inflow to the main reservoirs in 2Q 2019 is expected to be close to
the long-run average or slightly below it.
Electricity generation by the plants of RusHydro Group, GWh
1Q'19 1Q'18 chg, %
Center of Russia 8,180 10,957 -25.3%
South of Russia and North Caucasus 1,169 1,141 2.6%
Siberia 5,642 5,594 0.9%
Total for the price zones 14,991 17,692 -15.3%
Far East 13,914 14,080 -1.2%
Armenia 48 63 -24.9%
TOTAL 28,952 31,835 -9.1%
incl. by HPPs, PSPPs*** 19,127 22,140 -13.6%
incl. by TPPs and other 9,722 9,581 1.5%
Incl. by alt. renewables (geothermal, 104 114 -9.1%
solar, wind)
Boguchanskaya HPP** 3,741 2,803 33.5%
The underlying factors of the production change in January-March 2018 were:
- return of water inflows back to the normal level, while in 1Q 2018 they
were over twice that of the normal level;
- total water inflow to the reservoirs in the south of Russia and Siberia
above the long-run average;
- growth of electricity generation by thermal power plants in the Far East;
- decrease of electricity and heat consumption in the Far East driven by
weather conditions;
? decrease in electricity sales to China by 32.9% (to 370.2 GWh) as compared
to the same period last year.
Center of Russia
Hydropower plants of the Volga-Kama cascade are operating under the winter
period regime of pre-flooding reservoir drawdown. The water reserves of the
cascade's reservoirs are higher by 17% and by 28% as compared to the normal
level and last year, respectively. Reservoir drawdown is expected to be
higher as compared to the normal level and last year. Increase of
unregulated side inflows are projected in third decade of April. Flood
control committees were established at HPPs to ensure the hydro facilities
and equipment's readiness to pass the flooding season. Currently no safety
risks are projected.
In the first quarter of 2018 water inflow to most of the reservoirs on Volga
and Kama was close to the normal level. Total water inflow to the reservoirs
of the Volga-Kama cascade reached 24.9 km3 (normal level - 21.3 km3).
Total electricity production by the hydropower plants of the Volga-Kama
cascade and Zagorsksaya pumped storage in the first quarter of 2019 reached
8,180 GWh.
South of Russia and North Caucasus
According to the Hydrometeorology Center of Russia, in the first quarter of
2019 the snow accumulation in the mountains of the North Caucasus is above
the normal level. The water inflow from the mountains will reach the hydro
system in the end of May - beginning of June. The high water period will
last until the end of August.
Water inflow to the reservoir of Chirkeyskaya HPP in 1Q 2019 was 20% above
the normal level. Average daily water inflow to the reservoir of
Chirkeyskaya HPP in the months of January and February 2019 was 75.7 m3. The
HPP is operating under water economy regime to preserve high water level in
the reservoir as water reserves in the snow deposits of the Sulak River are
below the normal level.
Total electricity production by the hydropower plants in the South of Russia
and North Caucasus decreased by 2.6% to 1,169 GWh as compared to the
corresponding period last year.
Siberia
Water inflow to the reservoirs on the rivers of Siberia in the first quarter
of 2019 was higher than normal level by 15%.
Overall electricity production by the hydropower plants in Siberia increased
by 0.9% to 5,642 GWh as compared to the first quarter of last year. The
Boguchanskaya HPP produced 3,741 GWh in the first quarter of 2019, an
increase of 33.5% over the corresponding period last year.
Far East
The spring flooding season in the Far East is expected at the end of April -
beginning of May.
In the first quarter of 2019, water inflow to Kolymskoye and Zeyskoye
reservoirs was 25-40% above the normal level. Water inflow to the cross
section of Bureyskaya HPP decreased following a landslide that occurred in
December of 2018. The situation has been restored in February 2019 once an
outlet was formed. Since then 1.16 km3 of water has entered the dam storage.
In the first wuarter of 2019, the facility was operating under normal
conditions, in the pre-flooding reservoir drawdown regime.
Total electricity generated by hydro and geothermal power plants in the Far
East (not included in the RAO ES East subgroup) in the first quarter of 2019
decreased by 9.5% to 3,281 GWh against the same period last year.
Total electricity generated by RAO ES East subgroup in the first quarter of
2019 amounted to 10,627 GWh, an increase of 1.6% as compared to the first
quarter last year. JSC Far Eastern Generating Company's (DGK) share of
electricity generated was 74% or 7,847 GWh, an increase of 0.3% against the
same period last year.
The main driver behind the increase was a decrease in production by HPPs
operating in United Power System of the East. Energy consumption in the
Unified Power System of the East in the first quarter of 2019 decreased by
0.3% over the same period last year. Electricity sales to China decreased by
32.9% to 370.2 GWh, while sales to UES of Siberia increased by 40.7% to
159.5 GWh.
Heat output by thermal plants of RAO ES East Subgroup in the first quarter
of 2019 decreased by 6.7% to 12,172 GCal as compared to the corresponding
period of 2018 due to higher air temperatures in all the regions of the Far
East with an exception of Kamchatka Krai, Magadan region and Chukotka
Autonomous Okrug.
Heat output by thermal plants of RAO ES of the East Subgroup, '000 GCal
1Q'/19 1Q'/18 chg.
JSC DGK 8,246 9,420 -12.5%
JSC RAO ES East 333 - -
PJSC Yakutskenergo 1,056 1,059 -0.3%
JSC Sakhaenergo 33 38 -13.1%
JSC Teploenergoservice 498 548 -9.1%
PJSC Kamchatskenergo 753 740 1.8%
JSC KSEN 34 30 13.3%
PJSC Magadanenergo 476 463 2.8%
JSC Chukotenergo 151 148 2.0%
PJSC Sakhalinenergo 593 594 -0.2%
TOTAL 12,172 13,039 -9.2%
Armenia
Electricity generation by the Sevan-Hrazdan cascade of hydropower plants in
Armenia in the first quarter of 2019 decreased by 24.9% to 48 GWh. The power
generation by the plants of the cascade is dependent on water inflows of the
Hrazdan river and water discharge from Sevan Lake.
Electricity retail
Total electricity output by RusHydro Group's energy retail companies in 1Q
2019 decreased by 3.3% to 14,779 GWh as compared to 1Q 2018. Decrease came
on the back of climate factor as the average temperature in the first
quarter of 2019 was higher than in the first quarter of 2018.
In the first quarter of 2019, total electricity output by RusHydro's retail
companies, operating in Chuvashia, Ryazan and Krasnoyarsk regions, amounted
to 5,588 GWh.
Electricity output by PJSC DEK (energy retail company operating in the
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April 18, 2019 11:02 ET (15:02 GMT)
Primorskiy Krai, Khabarovskiy Krai, Amur region and Jewish Autonomous
region, the main supplier of electricity to the population in the second
non-price zone of the wholesale energy market) in the first quarter of 2019
amounted to 6,416 GWh. The decrease in performance in 2018 is primarily
driven by abnormally warm weather conditions in 1Q 2019.
Total electricity output by RusHydro's companies located in the isolated
energy systems in the Far East Federal District amounted to 2,775 GWh in 1Q
2019, an increase of 4.9% as compared to the same period last year.
Electricity output by RusHydro Group's retail companies, GWh
1Q'19 1Q'18 chg, %
Krasnoyarskenergosbyt 3,529 3,916 -9.9%
Chuvash retail company 936 960 -2.5%
Ryazan retail company 698 730 -4.3%
ESC RusHydro 425 387 9.9%
Total 5,588 5,992 -6.7%
PJSC DEK (for reference) 6,416 6,643 -3,4%
Isolated energy systems (for reference) 2,775 2,645 4,9%
Total by Group 14,779 15,280 -3.3%
Water inflows forecast
According to the forecast of the Hydrometeorology Center of Russia, the
following dynamics of water inflows to the major reservoirs is expected in
the 2nd quarter of 2019:
- Total water inflows to reservoirs on Volga and Kama are expected to be
below the long-run average, in the range of 128 - 148 km3 (as compared to
the normal level of 161 km3);
- Inflows to reservoir of the rivers of North Caucasus and Siberia for the
most part are expected to be close to long-run average;
- Inflows to Zeyskoe reservoir in the Far East are expected to be slightly
above the long-run average, while inflows to Kolymskoe reservoir are
expected to be above the long-run average.
* ATS (Trading System Administrator) spot prices.
** The Boguchanskaya hydropower plant is part of the Boguchanskiy Energy and
Metals Complex (BEMO), a 50/50 joint venture (JV) between RusHydro and UC
RUSAL, and is not part of RusHydro Group. According to RusHydro's
shareholding in the JV (50%), the results of the plant are reported in the
official financial statements in "Share of results of associates and jointly
controlled entities". Operations of the HPP have been put into the
press-release for general reference.
*** Includes generation by HPPs of JSC RusHydro, Kolymskaya HPP and
Viluiskie HPPs (RAO ES East Subgroup).
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 the MICEX and RTS stock exchanges. Company's GDRs in the
IOB section of LSE, ADRs - in OTCQX.
For more information:
Investor Relations Department
Tel. +7 (800) 333 8000 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
conditions, our competitive environment, risks associated with operating in
Russia, rapid technological and market change in our industries, as well as
many other risks specifically related to RusHydro and its operations.
ISIN: US7821834048, RU000A0JPKH7
Category Code: MSCM
TIDM: HYDR
LEI Code: 2534005TJN9DX4YWVT97
OAM Categories: 2.2. Inside information
Sequence No.: 8271
EQS News ID: 801959
End of Announcement EQS News Service
(END) Dow Jones Newswires
April 18, 2019 11:02 ET (15:02 GMT)
