PJSC RusHydro (HYDR)
PJSC RusHydro: RusHydro announces 9M 2019 RAS results
30-Oct-2019 / 09:41 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 9M 2019 RAS results*
*October 30, 2019. Moscow, Russia. *PJSC RusHydro (MOEX, LSE: HYDR; OTCQX:
RSHYY) announces non-consolidated financial results under Russian accounting
standards (RAS) for the nine months ended September 30, 2019.
*Key highlights: *
- EBITDA - RUB 58,801 mn;
- Reported net profit - RUB 34,255 mn;
- Since July 1st 2017, a surcharge to capacity prices in 1and 2 price
zones in order to attain base level of end-user tariffs in the Far East of
Russia is reflected in PJSC RusHydro's revenue and operating expenses[1].
In 9M19, the surcharge totaled RUB 26,245 mn, in the 9M18 - RUB 28,663 mn;
Adjusted for the surcharge revenue and expenses (here and below in the
text) were:
- Revenue - RUB 89,386 mn;
- Operating expenses - RUB 43,211 mn.
*Key financials for 3Q and 9M 2019 under RAS (in RUB mn), excluding
surcharge*
*9M'19* *9M'18* *chg* *3Q'19* *3Q'18* *chg*
Revenue (adj. 89,386 96,057 -7% 29,711 32,329 -8%
for surcharge)
Operating (43,211) (43,358) -0.3% (14, 560) (15,098) -4%
expenses (adj.
for surcharge)
Operating 46,175 52,699 -12% 15,151 17,231 -12%
profit
EBITDA[2] 58,801 65,103 -10% 19,417 21,362 -9%
Net profit 34,255 37,514 -9% 10,998 10,896 1%
Net profit 33,778 37,015 -9% 10,839 10,914 -1%
(adj.)[3]
*Revenue *
In nine months of 2019, revenue decreased by 7% or RUB 6,671 mn to RUB
89,386.
Revenue breakdown (RUB mn)
*9M'1**9* *9M'1**8* *chg* *3Q'1**9* *3Q'1**8* *chg*
Electricity 57,330 64,992 -12% 19,438 22,457 -13%
sales
Capacity 31,780 30,765 3% 10,179 9,799 4%
sales
Other sales 276 300 -8% 94 73 29%
*TOTAL* *89,386* *96,057* *-7%* *29,711* *32,329* *-8%*
*Operating expenses*
Operating expenses in the nine months of 2019 stayed flat to the
corresponding period of 2018 and amounted to RUB 43,211 mn.
The main changes were observed in the following items:
? Purchased electricity and capacity (increase of RUB 337 mn) due to
higher day-ahead market prices;
? Property tax (decrease of RUB 968 mn) due to amendments to the Tax code
of the Russian Federation affecting property tax, cancelling tax for
movable property effective of Jan 1, 2019;
? Rent decreased by RUB 467 mn due to purchase of Gotsatlinskaya HPP and
Zaragizhskaya HPP from subsidiaries with simultaneous increase in property
tax and depreciation by RUB 95 mn and RUB 230 mn, respectively.
Operating expenses breakdown (in RUB mn)
*9M**'**19* *9M'18* *chg* *3Q'1**9* *3Q'18* *chg*
Depreciation 12,625 12,404 2% 4,266 4,131 3%
Purchased 6,227 5,890 6% 1,760 2,058 -14%
electricity
and capacity
Labor 5,487 5,250 5% 1,818 1,758 3%
expenses,
taxes and
contribution
s
Property tax 4,551 5,519 -18% 1,532 1,841 -17%
Other 2,542 2,567 -1% 923 969 -5%
third-party
services
Repairs and 2,444 2,191 12% 952 971 -2%
maintenance
Power system 2,328 2,253 3% 801 773 4%
services
Water tax 1,510 1,470 3% 620 536 16%
Security 1,321 1,309 1% 442 475 -7%
expenses
Insurance 1,287 1,245 3% 455 443 3%
expenses
Rent 989 1,456 -32% 278 477 -42%
Other 1,900 1,804 5% 713 666 7%
*TOTAL* *43,211* *43,358 *-0.3%* *14.560* *15,098 *-4%*
* *
*Profit*
Operating profit for nine months of 2019 decreased by 12% or RUB 6,524 mn as
compared to the same period last year and amounted to RUB 46,175 mn.
Reported net profit for nine months of 2019 decreased by 9% to RUB 34,255
mn. Nonetheless, in the third quarter of 2019 net profit increased by 1% to
RUB 10,998 mn as compared to the corresponding period of 2018.
Net profit adjusted for non-cash items decreased by 9% and reached RUB
33,778 mn. The difference between the reported and adjusted net profit is
attributed mainly to the following non-cash effects:
? gain (net) on reversal of bad debt reserves in the amount of RUB 288 mn;
? gain on reversal of other reserves in the amount of RUB 189 mn.
*RusHydro's financial position as of September 30, 2019*
The Company's total assets increased by RUB 20,480 mn as of September 30,
2019, or 2% against the similar figure as of December 31, 2018, reaching RUB
1,057,286 mn.
As of September 30, 2019, total liabilities increased by 1% or RUB 2,096 mn
as compared to the similar figure as of December 31, 2018 and amounted to
RUB 187,640 mn.
The Company's debt portfolio decreased by 6% as compared to the beginning of
the reporting year and reached RUB 139,498 mn. Long-term loans comprise 83%
of the total portfolio.
The Company's equity in nine months of 2019 increased by 2% to RUB 869,589
mn against RUB 851,206 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]
_RusHydro Group will announce consolidated 3Q and 9M'19 IFRS results on
November 28, 2019._
***
*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 (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
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.
4
[1] 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.
[2] EBITDA calculated as gross profit before depreciation.
[3] 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.
ISIN: US7821834048, RU000A0JPKH7
Category Code: MSCH
TIDM: HYDR
LEI Code: 2534005TJN9DX4YWVT97
OAM Categories: 2.2. Inside information
Sequence No.: 25937
EQS News ID: 900323
End of Announcement EQS News Service
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(END) Dow Jones Newswires
October 30, 2019 04:41 ET (08:41 GMT)
