DJ PJSC RusHydro: RusHydro Group announces its operating results for 9 months of 2019
PJSC RusHydro (HYDR)
PJSC RusHydro: RusHydro Group announces its operating results for 9 months
of 2019
22-Oct-2019 / 13:23 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 9 months of 2019
October 22, 2019. Moscow, Russia. PJSC RusHydro (ticker symbol: MICEX-RTS,
LSE: HYDR; OTCQX: RSHYY) announces operating results for the 3rd quarter and
9 months of 2019, of the parent company and subsidiaries of RusHydro Group
reflected in consolidated financial statements.
Key highlights:
- Operating results in 3Q 2019 reflected production increase on the back
of rainfall flooding and increased water inflow to the following
reservoirs: Volga-Kama cascade - 142% of the normal level,
Sayano-Shushenskoye - 116% of the normal level, Zeyskoye - 113% of the
normal level, Bureyskoye - 149% of the normal level and Kolymskoye - 161%
of the normal level.
- In 3Q'19, total production by hydropower and pumped storage plants
amounted to 27,168 GWh (+4.6%), total output by thermal power plants -
6,036 GWh (-2.6%) and production of alternative renewable energy
facilities - 91 GWh (+4.5%);
- In 9M'19, total production by hydropower and pumped storage plants
amounted to 68,824 GWh (-10.1%), total output by thermal power plants -
22,755 GWh (+0.1%) and production of alternative renewable energy
facilities - 308 GWh (-4.5%);
- Total electricity generation by the Boguchanskaya hydropower plant in
9M'19 amounted to 11,785 GWh (+14.6%)*;
- Total production of RAO ES East Subgroup's power plants in 9M'19
amounted to 24,615 GWh (+0.3%), heat output by thermal power plants -
18,967 thousand GCal (-3.1%);
- Sales by RusHydro Group's electricity retail companies in 9M'19 amounted
to 14,051 GWh (-4.5%);
- As of third decade of October, water storage at reservoirs of the
Volga-Kama cascade is 23% above the average level; at the reservoirs of
the Far East - slightly above the normal level; at the reservoirs of
Siberia and in the South of Russia - at the normal level.
Electricity generation by the plants of RusHydro Group, GWh
3Q'19 3Q'18 chg, % 9M'19 9M'18 Chg, %
Center of Russia 10,171 9,843 3.3% 29,528 35,828 -17.6%
S. of Russia and 2,489 2,494 -0.2% 5,804 6,102 -4.9%
N.Caucasus
Siberia 9,813 9,406 4.3% 20,478 22,239 -7.9%
Total for the price 22,473 21,743 3.4% 55,810 64,169 -13.0%
zones
Far East (HPP, 4,270 3,688 15.8% 11,073 10,517 5.3%
geothermal)
RAO ES East Subgroup 6,420 6,641 -3,3% 24,615 24,550 0,3%
Armenia 133 174 -23.1% 390 368 6.0%
TOTAL 33,295 32,246 3.3% 91,888 99,604 -7.7%
incl. by HPPs, PSPPs** 27,168 25,961 4.6% 68,824 76,567 -10.1%
incl. by TPPs 6,036 6,197 -2.6% 22,755 22,722 6.2%
Incl. by alt. 91 87 4.5% 308 314 -2.0%
renewables
(geothermal, solar,
wind)
Boguchanskaya HPP1 4,426 4,122 7.4% 11,785 10,286 14.6%
The underlying factors of the production change in the nine months of 2019
were:
? water inflows to the reservoirs of HPPs on the Volga-Kama cascade, South
of Russia and Siberia close to the normal level;
? water inflows to the reservoirs in the Far East above the long-run
average;
? growth of electricity generation by thermal power plants in the Far East
on the back of electricity consumption growth by 2.2%;
? growth of electricity sales to UES of Siberia from UES of the East by
11.5% (to 389 GWh) as compared to the same period last year;
? decrease of electricity sales to China by 3.1% (to 2,376.4 GWh).
Center of Russia
In the beginning of 2019, hydropower plants of the Volga-Kama cascade were
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.
In the first quarter of 2018, 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).
In the second quarter, water inflows to the reservoirs of the HPPs of the
Volga-Kama cascade were predominantly below the normal level: inflows to
Uglichskoye, Rybinskoye, Gorkovskoye and Nizhnekamskoye reservoirs were
20-40% below, inflows to Ivankovskoye, Cheboksarskoye and Saratovskoye
reservoirs were 60% below, while inflows to Volgogradskoye reservoir were
80% below the normal level. At the same time inflows to Sheksnskoye,
Kuybishevskoye, Kamskoye and Votkinskoye reservoirs were at the normal
level.
In the third quarter, water inflows to the majority of reservoirs on the
Volga-Kama cascade were at the normal level. Inflows to Kuybishevskoye and
Kamskoye reservoirs were 1.4 and 2.3 times the normal level, respectively on
the back of rainfall flood. By the end of third quarter water storage at the
reservoirs of the cascade were 18% above the normal level.
Total water inflow to the reservoirs on Volga and Kama in 3Q was 51.3 km3,
39% above the normal level. Total electricity production by the hydropower
plants of the Volga-Kama cascade and Zagorsksaya pumped storage in the third
quarter of 2019 increased by 3.3% to 10,171 GWh, in the nine months of the
year production amounted to 29,258 GWh as compared to corresponding period
of 2018.
South of Russia and North Caucasus
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.
In the second quarter of 2019, water inflow to Chirkeyskaya HPP was close to
the normal level. By the beginning of the third quarter water storage at the
reservoirs of the HPPS of the Sulak cascade were 5% above the normal level
and 4% above the level observed during the same period last year.
In the third quarter water inflow to the reservoir of Chirkeyskaya HPP was
35% below the normal level. By the end of third quarter water storage at the
reservoir was at the normal level.
In 3Q 2019, total electricity production by the hydropower plants in the
South of Russia and North Caucasus decreased by 0.2% to 2,489 GWh as
compared to the corresponding period last year, in nine months of the year -
amounted to 5,804 GWh.
Siberia
Water inflow to the reservoirs on the rivers of Siberia in the first quarter
of 2019 was higher than normal level by 15%.
In the second quarter of 2019 water inflows to Novosibirskoye and
Sayano-Shushenskoye reservoirs was 20% below the normal level. By the end of
the spring flooding season the reservoir was filled to the normal reservoir
water surface of 113.5 m allowing enough water storage for the low water
season as well as for upcoming heating season.
Water inflow to the Sayano-Shushenskoye reservoir in the second quarter was
30% below the normal level as low air temperatures delayed the start of
spring flooding. By the end of June inflows increased significantly
following extra rainfall and snowmelt in the mountains allowing filling the
reservoir up to the normal level.
In the third quarter of 2019, water inflow to Novosibirskoye reservoir was
20% above the normal level, to Sayano-Shushenskoye reservoir - 15% above the
normal level. At Sayano-Shushenskoye reservoir following extended cold
front, flooding season shifted to the summer before transitioning to
rainfall flood allowing filling of the reservoir under normal conditions.
Starting from August 16 additional water was discharged through spillways.
In the third quarter, the HPP operated under maximum capacity for the first
time in its history. This became possible thanks to effective coordination
with the System Operator.
Overall electricity production by the hydropower plants in Siberia increased
by 4.3% in 3Q 2019 to 9,813 GWh, in the nine months of the year production
amounted to 20,478 GWh. Boguchanskaya HPP produced 4,426 GWh in 3Q 2019 and
11,785 GWh in nine months of the year - an increase of 7.4% and 14.6% over
the corresponding period last year respectively.
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 following
formation of an outlet. Since then 1.16 km3 of water has entered the segment
of the reservoir adjacent to the dam. In the first quarter of 2019, the
facility was operating under normal conditions, in the pre-flooding
reservoir drawdown regime.
In 2Q 2019, water inflow to Kolymskoye reservoir was 35% above the normal
level while inflow to the Zeyskoye reservoir is below the normal level.
Inflow to the Bureyskoye reservoir was 60% above the normal level. Up to 50%
of the inflow was accumulated in the reservoir.
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DJ PJSC RusHydro: RusHydro Group announces its -2-
In 3Q 2019, water inflow to Kolymskoye and Zeyskoye reservoir was 90% and
20% above the normal level, respectively. In July the water level on Kolyma
River was well above the normal level and the reservoir was quickly filled
to the normal water surface level. Flood on the Kolyma River began in
August. While short, it was very powerful as the peak inflow on August 6 was
measured at 11,414 m3/sec. Such inflow occurs once in every 1,000 years.
Optimal reservoir regime control, allowed to decrease the flood's peak by
40% reducing its effect on the lower Kolyma. In the Amur region, following
substantial rainfall, emergency situation was introduced. On Zeyskaya HPP,
the extra water inflows from the flooding were accumulated in the reservoir.
On July 23, at the peak of the flooding average daily inflow was measured at
11,510 m3/sec with only 732 m3/sec discharged from the spillway at the HPP.
Effective operation of Zeyskaya HPP prevented significant flooding in the
region.
Total electricity generated by hydro and geothermal power plants in the Far
East (not included in the RAO ES East subgroup) increased by 15.8% in the
third quarter of 2019 and by 5.3% in the nine months of 2019 to 4,270 GWh
and 11,073 GWh respectively against the same periods last year.
Total electricity generated by RAO ES East subgroup in the third quarter of
2019 amounted to 6,420 GWh, a decrease of 3.3% as compared to the same
period last year. JSC Far Eastern Generating Company's (DGK) share of
electricity generated was 74% or 4,770 GWh, a decrease of 4.8% against the
same period last year. Increase of production by HPPs located in UES of
East, increase in electricity consumption by 4.7% to 9,880 GWh as well as
decrease in electricity sales to UES of Siberia by 22.4% to 105 GWh were the
main drivers behind the decline.
In nine months of the year, total electricity generation by RAO ES East
subgroup increased by 0.3% to 24,615 GWh against the corresponding period of
2018. Increase is primarily driven by growth of electricity consumption in
the Far East Federal District by 2.2% to 34,507 GWh, increase of electricity
sales to UES of Siberia by 11.5% to 389 GWh as well as decrease of
electricity sales to China by 3.1% to 2,376 GWh against the same period last
year.
Heat output by thermal plants of RAO ES East Subgroup in the third quarter
of 2019 increased by 13.2% to 2,168 GCal as compared to the corresponding
period last year. The increase came on the back of lower air temperatures
aided by losses in heat networks that suffered from rainfall flood in
Primorsky and Khabarovsk Krai. In nine months of 2019 heat output decreased
by 3.1% against 9M 2018 to 18,957 GCal.
Heat output by thermal plants of RAO ES of the East Subgroup, '000 GCal
3Q'19 3Q'18 chg, % 9M'19 9M'18 chg,%
JSC DGK 1,542 1,373 12.3% 12,66 13,78 -8.1%
5 6
JSC RAO 71 - - 565 - -
ES East
PJSC 178 162 9.4% 1,555 1,539 1.1%
Yakutske
nergo
JSC 3 3 -1.3% 49 55 -11.6%
Sakhaene
rgo
JSC 51 59 -14.2% 707 770 -8.2%
Teploene
rgoservi
ce
PJSC 122 119 1.8% 1,309 1,298 0.9%
Kamchats
kenergo
JSC KSEN 4 4 4.8% 52 51 3.4%
PJSC 98 98 -0.2% 815 814 0.1%
Magadane
nergo
JSC 47 41 14.1% 287 281 2.3%
Chukoten
ergo
PJSC 52 56 -7.3% 963 981 -1.8%
Sakhalin
energo
Total 2,168 1,916 13.1% 18,96 19,57 -3.1%
7 4
Armenia
Electricity generation by the Sevan-Hrazdan cascade of hydropower plants in
Armenia in the third quarter of 2019 decreased by 23.1% to 133 GWh, in nine
months of the year - increased by 6.0% to 390 GWh as compared to the
corresponding period of last year. 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 3Q
2019 was in line with 3Q 2018 at 10,069 GWh, in 9M 2019 electricity output
amounted to 34,826 GWh, a decrease of 3.9% as compared to the corresponding
period last year. The decrease came mainly on the back of climate factor as
well as termination of supply agreements with customers.
Total electricity output by RusHydro's retail companies, operating in
Chuvashia, Ryazan and Krasnoyarsk regions in the third quarter of 2019
decreased by 1.6% to 4,127 GWh as compared to 3Q'18. In the nine months of
the year, total output decreased by 4.5% as compared to the corresponding
period last year and amounted to 14,051 GWh. Increase in output at ESC
RusHydro is driven by new supply agreements as well as increase in
electricity consumption by JSC Polyus Krasnoyarsk and Yandex DC Vladimir
LLC.
Electricity output by PJSC DEK (energy retail company operating in the
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 third quarter of 2019
amounted to 4,137 GWh, an increase of 3.4% as compared to 3Q'18. Favorable
performance is primarily driven by increase in consumption by industrial
consumers and households. In nine months of 2019 electricity output
increased by 0.2% to 15,020 GWh as compared to the same period last year as
a result of increase in consumption by industrial consumers.
Total electricity output by RusHydro's companies located in the isolated
energy systems in the Far East Federal District amounted to 1,805 GWh in 3Q
2019, a decrease of 3.7% as compared to the same period last year. In nine
months of 2019 total electricity output decreased by 12.1% to 5,755 GWh as
compared to the same period last year.
Electricity output by RusHydro Group's retail companies, GWh
3Q'19 3Q'18 chg, % 9M'19 9M'18 chg, %
PJSC 2,378 2,450 -3.0% 8,520 9,126 -6.6%
Krasnoyarskenergosbyt
JSC Chuvash retail 732 723 1.4% 2,400 2,432 -1.3%
company
PJSC Ryazan retail 574 605 -5.1% 1,828 1,934 -5.5%
company
JSC ESC RusHydro 443 413 7.4% 1,303 1,214 7.4%
Total 4,127 4,192 -1.6% 14,051 14,706 -4.5%
PJSC DEK (for 4,137 4,002 3,4% 15,020 14,995 0,2%
reference)
Isolated energy 1,805 1,875 -3,7% 5,755 6,551 -12,1%
systems (for
reference)
Total by Group 10,069 10,069 0.0% 34,826 36,252 -3,9%
Water inflows forecast
According to the forecast of the Hydrometeorology Center of Russia, the
following dynamics of water inflows to the major reservoirs are expected in
the 4th quarter of 2019:
? Total water inflows to the majority of reservoirs on Volga and Kama and
on the rivers of Siberia are expected to be close to the long-run average;
? Inflows to reservoir of the rivers of North Caucasus are expected to be
20-50% below the long-run average;
? Inflows to Zeyskoe and Kolymskoye reservoirs in the Far East are
expected to be at the long-run average, to Bureyskoye reservoir - 55-60%
above the normal level.
* 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 PJSC RusHydro, Kolymskaya HPP and
Viluyskie HPPs, part of RAO ES of East Subgroup.
About RusHydro
RusHydro Group is the leading producer of renewable energy in Russia. It is
Russia's largest generating company and is the fourth in the world with over
400 generating facilities in Russia and Armenia. The Group's total
electricity generation capacity including Boguchanskaya HPP is 39.7 GW.
Russian Federation owns 61.20% in RusHydro, the rest is held by other
institutional and individual shareholders (over 360,000). The company's
stock is traded on the Moscow Stock Exchange. Company's GDRs in the IOB
section of LSE, ADRs - in OTCQX.
For more information:
Investor Relations Department
Tel. +7 (495) 122 0555 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
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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.: 24253
EQS News ID: 894163
End of Announcement EQS News Service
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