PJSC RusHydro (HYDR)
PJSC RusHydro: RusHydro announces first quarter 2020 RAS results
29-Apr-2020 / 17:09 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 first quarter 2020 RAS results
April 29, 2020. Moscow, Russia. PJSC RusHydro (MOEX, LSE: HYDR; OTCQX:
RSHYY) announces non-consolidated financial results under Russian accounting
standards (RAS) for the first quarter ended March 31, 2020.
Key highlights:
- EBITDA - RUB 24,358 mn (+25%);
- Reported net profit - RUB 14,315 mn (+14%);
- Since July 1st 2017, a surcharge to capacity prices in 1st and 2nd 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
1Q20, the surcharge totaled RUB 10,264 mn, in the 1Q19 - RUB 8,748 mn;
Adjusted for the surcharge revenue and expenses (here and below in the
text) were:
- Revenue - RUB 34,653 mn (+19%);
- Operating expenses - RUB 14,684 mn (+7%).
Key financials for 1Q 2020 under RAS (in RUB mn), excluding surcharge
1Q'20 1Q'19 chg
Revenue (adj. for surcharge) 34,653 29,081 +19%
Operating expenses (adj. for surcharge) (14,684) (13,733) +7%
Operating profit 19,969 15,348 +30%
EBITDA** 24,358 19,440 +25%
Net profit 14,315 12,537 +14%
Revenue
In the first quarter of 2020, revenue increased by 19% or RUB 5,572 mn to
RUB 34,653 mn as compared to the corresponding period last year on the back
of output growth by HPPs following increase of water inflows to the majority
of reservoirs.
Revenue breakdown (RUB mn)
1Q'20 1Q'19 chg
Electricity sales 21,338 17,513 +22%
Capacity sales 13,189 11,472 +15%
Other sales 126 96 +31%
TOTAL 34,653 29,081 +19%
Operating expenses
Operating expenses in the first quarter of 2020 increased by 7% to RUB
14,684 mn.
The main changes were observed in the following items:
? Purchased electricity and capacity (decrease of RUB 235 mn) due to
decrease in day-ahead market prices;
? Water tax (increase of RUB 194 mn) due to HPP production growth;
? Rent (intercompany, increase of RUB 348 mn) due to rent agreement of
Zaramagskaya HPP-1 property.
Operating expenses breakdown (in RUB mn)
1Q'20 1Q'19 chg
Depreciation 4,389 4,091 +7%
Purchased electricity and capacity 2,088 2,323 -10%
Labor expenses, taxes and contributions 1,663 1,635 +2%
Property tax 1,576 1,496 +5%
Other third-party services 1,021 778 +31%
Power system services: 805 760 +6%
Rent 755 407 +86%
Water tax 604 410 +47%
Repairs & maintenance 477 498 -4%
Security expenses 466 438 +6%
Insurance expenses 403 401 +0.4%
Other 437 496 -12%
TOTAL 14,684 13,733 +7%
Profit
Operating profit for the first quarter of 2020 increased 30% as compared to
the same period last year and amounted to RUB 19,969 mn.
EBITDA in the first quarter of 2020 increased by 25% to RUB 24,358 from RUB
19,440 in 1Q'19.
Net profit in the reporting period increased by 14% to RUB 14,315 mn.
RusHydro's financial position as of March 31, 2020
The Company's total assets increased by RUB 25,315 mn as of March 31, 2020,
or 2% against the similar figure as of December 31, 2019, reaching RUB
1,089,509 mn.
As of March 31, 2020, total liabilities increased by 5% or RUB 10,999 mn as
compared to the similar figure as of December 31, 2019 and amounted to RUB
223,224 mn.
The Company's debt portfolio increased by 2% as compared to the beginning of
the reporting year and reached RUB 147,041 mn. Long-term loans comprise 71%
of the total portfolio.
The Company's equity in the first quarter of 2020 increased by 2% to RUB
866,285 mn against RUB 851,970 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 1Q'20 IFRS results in June, 2020.
* 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.
***
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. The Group's total electricity generation capacity
including Boguchanskaya HPP is 39.5 GW.
For more information:
Investor Relations Department
Tel. +7 (495) 122 0555 ext. 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.: 61251
EQS News ID: 1033165
End of Announcement EQS News Service
1: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=d8efd81e8add00cb2f690c1ec7caee3b&application_id=1033165&site_id=vwd&application_name=news
(END) Dow Jones Newswires
April 29, 2020 11:09 ET (15:09 GMT)
© 2020 Dow Jones News
