DJ PJSC RusHydro: RusHydro announces full year 2019 RAS results
PJSC RusHydro (HYDR)
PJSC RusHydro: RusHydro announces full year 2019 RAS results
27-Feb-2020 / 13:50 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 is solely responsible for the content of this announcement.
RusHydro announces full year 2019 RAS results
February 27, 2020. Moscow, Russia. PJSC RusHydro (MOEX, LSE: HYDR; OTCQX:
RSHYY) announces non-consolidated financial results under Russian accounting
standards (RAS) for the full year ended December 31, 2019.
Key highlights:
- EBITDA - RUB 78,237 mn (-5%);
- Reported net profit - RUB 38,645 mn (+5%);
- Since July 1st 2017, a surcharge to capacity prices in 1 and 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*. In
2019, the surcharge totaled RUB 32,077 mn, in the 2018 - RUB 35,032 mn;
Adjusted for the surcharge revenue and expenses (here and below in the
text) were:
- Revenue - RUB 123,103 mn;
- Operating expenses - RUB 61,807 mn.
Key financials for 4Q and 2019 under RAS (in RUB mn), excluding surcharge
2019 20 18 chg 4Q'19 4Q'18 chg
Revenue (adj. 123,103 127,781 -4% 33,717 31,724 6%
for surcharge)
Operating (61,807) (61,815) -0.01% (18,596) (18,457) 0.8%
expenses (adj.
for surcharge)
Operating profit 61,296 65,966 -7% 15,121 13,267 14%
EBITDA** 78,237 82,498 -5% 19,437 17,395 12%
Net profit 38,645 36,726 5% 4,390 -788 657%
Net profit 44,194 43,072 3% 9,939 6,057 64%
(adj.)***
Revenue
In 2019, revenue decreased by 4% or RUB 4,678 mn to RUB 123,103 on the back
of record HPP production in 2018 compounded by lower water inflows to the
reservoirs of the Volga-Kama cascade in the first half of 2019.
Revenue breakdown (RUB mn)
2019 2018 chg 4Q'19 4Q'18 chg
Electricity sales 78,596 85,059 -8% 21,266 20,067 6%
Capacity sales 44,039 42,327 4% 12,259 11,562 6%
Other sales 468 395 18% 192 95 102%
TOTAL 123,103 127,781 -4% 33,717 31,724 6%
Operating expenses
Operating expenses in 2019 stayed flat to 2018 and amounted to RUB 61,807 mn
following execution of plan on optimization of operational expenses based on
independent external audit review.
The main changes were observed in the following items:
? Property tax (decrease of RUB 978 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 628 mn due to purchase of Gotsatlinskaya HPP and
Zaragizhskaya HPP from subsidiaries with simultaneous increase in property
tax and depreciation by RUB 183 mn and RUB 345 mn, respectively.
Operating expenses breakdown (in RUB mn)
2019 2018 chg 4Q'19 4Q'18 chg
Depreciation 16,941 16,532 2% 4,316 4,128 5%
Purchased electricity 8,230 8,236 -0.1% 2,003 2,346 -15%
and capacity
Labor expenses, taxes 7,656 7,448 3% 2,169 2,198 -1%
and contributions
Property tax 6,162 7,140 -14% 1,611 1,621 -1%
Repairs and maintenance 4,259 3,861 10% 1,815 1,670 9%
Other third-party 3,912 3,835 2% 1,370 1,268 8%
services
Power system services 3,127 3,018 4% 799 765 4%
Water tax 2,072 1,887 10% 562 417 35%
Security expenses 1,762 1,748 1% 441 439 0.5%
Insurance expenses 1,746 1,756 -1% 459 511 -10%
Rent 1,310 1,938 -32% 321 482 -33%
Other 4,630 4,416 5% 2,730 2,612 5%
TOTAL 61,807 61,815 -0.01% 18,596 18,457 1%
Other income and expenses
Other income in 2019 increased by RUB 510 mn or 6% and amounted to RUB 8,485
mn as compared to 2018.
Other expenses in 2019 decreased by RUB 4,321 mn or 18% and amounted to RUB
19,400 mn as compared to 2018.
Profit
Operating profit in 2019 decreased by 7% or RUB 4,670 mn as compared to the
same period last year and amounted to RUB 61,296 mn.
Reported net profit in 2019 increased by 5% to RUB 38,645 mn. Nonetheless,
in the fourth quarter of 2019 net profit amounted to RUB 4,390 mn as
compared to net loss of RUB 788 mn in the corresponding period of 2018.
Net profit adjusted for non-cash items increased by 3% and reached RUB
44,194 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 6,038 mn;
? gain on reversal of other reserves in the amount of RUB 487 mn.
RusHydro's financial position as of December 31, 2019
The Company's total assets increased by RUB 27,388 mn as of December 31,
2019, or 3% against the similar figure as of December 31, 2018, reaching RUB
1,064,194 mn.
As of December 31, 2019, total liabilities increased by 2% or RUB 4,617 mn
as compared to the similar figure as of December 31, 2018 and amounted to
RUB 190,158 mn.
The Company's debt portfolio decreased by 2% as compared to the beginning of
the reporting year and reached RUB 144,579 mn. Long-term loans comprise 83%
of the total portfolio.
The Company's equity in 2019 increased by 3% to RUB 873,979 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 4Q and FY2019 IFRS results on
March 5, 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 the leading producer of renewable energy in Russia. It is
Russia's largest generating company and is among the top-5 in the world with
over 400 generating facilities in Russia and abroad. The Group's total
electricity generation capacity including Boguchanskaya HPP is 40.0 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
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
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many other risks specifically related to RusHydro and its operations. ISIN: US7821834048, RU000A0JPKH7 Category Code: MSCH TIDM: HYDR LEI Code: 2534005TJN9DX4YWVT97 OAM Categories: 2.2. Inside information Sequence No.: 49245 EQS News ID: 985085 End of Announcement EQS News Service 1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=d8efd81e8add00cb2f690c1ec7caee3b&application_id=985085&site_id=vwd&application_name=news
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