PJSC RusHydro (HYDR)
PJSC RusHydro: RusHydro announces 1H 2020 RAS results
29-Jul-2020 / 10:10 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 1H 2020 RAS results
July 29, 2020. Moscow, Russia. PJSC RusHydro (MOEX, LSE: HYDR; OTCQX: RSHYY)
announces non-consolidated financial results under Russian accounting
standards (RAS) for the six months ended June 30, 2020.
Key highlights:
· EBITDA - RUB 49,537 mn (+26%);
· Reported net profit - RUB 29,870 mn (+41%);
· 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 expenses¹. In
1H20, the surcharge totaled RUB 20,529 mn, in the 1H19 - RUB 17,496 mn;
Adjusted for the surcharge revenue and expenses (here and below in the
text) were:
· Revenue - RUB 70,509 mn (+18%);
· Operating expenses - RUB 29,748 mn (+4%).
Key financials for 2Q and 1H 2020 under RAS (in RUB mn), excluding surcharge
1H'20 1H'19 chg 2Q'20 2Q'19 chg
Revenue (adj. for 70,509 59,675 18% 35,856 30,594 17%
surcharge)
Operating expenses (29,748) (28,651) 4% (15,064) (14,918) 1%
(adj. for surcharge)
Operating profit 40,761 31,024 31% 20,792 15,676 33%
EBITDA² 49,537 39,383 26% 25,179 19,943 26%
Net profit 29,870 21,240 41% 15,555 8,703 79%
Revenue
In the first half of 2020, revenue increased by 18% or RUB 10,834 mn to RUB
70,509 mn as compared to the corresponding period last year on the back of
33% output growth by HPPs following increase of water inflows to the
majority of reservoirs and commissioning of Zaramagskaya HPP-1.
Revenue breakdown (RUB mn)
1H'20 1H'19 chg 2Q'20 2Q'19 chg
Electricity sales 44,559 37,892 18% 23,221 20,378 14%
Capacity sales 25,716 21,601 19% 12,527 10,130 24%
Other sales 234 182 29% 108 86 26%
TOTAL 70,509 59,675 18% 35,856 30,594 17%
Operating expenses
Operating expenses in the first half of 2020 increased by 4% to RUB 29,748
mn.
The main changes were observed in the following items:
· Purchased electricity and capacity (decrease of RUB 869 mn) due to
decrease in day-ahead market prices;
· Water tax (increase of RUB 470 mn) due to HPP production growth and
tariff increase;
· Rent (intercompany, increase of RUB 134 mn) due to rent agreement of
Zaramagskaya HPP-1 property.
Operating expenses breakdown (in RUB mn)
1H'20 1H'19 chg 2Q'20 2Q'19 chg
Depreciation 8,776 8,359 5% 4,387 4,268 3%
Labor expenses, taxes and 3 740 3 669 2% 2,077 2,034 2%
contributions
Purchased electricity and 3,598 4,467 -19% 1,510 2,144 -30%
capacity
Property tax 3,154 3,019 4% 1,578 1,523 4%
Other third-party 1,948 1,619 20% 927 841 10%
services
Rent 1,667 711 134% 912 304 200%
Power system services 1,621 1,527 6% 816 767 6%
Water tax 1,360 890 53% 756 480 58%
Repairs and maintenance 1,137 1,492 -24% 660 994 -34%
Security expenses 906 879 3% 440 441 -0,2%
Insurance expenses 826 832 -1% 423 431 -2%
Other 1 015 1 187 -14% 578 691 -16%
TOTAL 29,748 28,651 4% 15,064 14,918 1%
Profit
Operating profit for the first half of 2020 increased 31% as compared to the
same period last year and amounted to RUB 40,761 mn.
EBITDA in the first half of 2020 increased by 26% to RUB 49,537 from RUB
39,383 in 1H'19.
Net profit in the reporting period increased by 41% to RUB 29,870 mn.
RusHydro's financial position as of June 30, 2020
The Company's total assets increased by RUB 32,290 mn as of June 30, 2020,
or 3% against the similar figure as of December 31, 2019, reaching RUB
1,096,484 mn.
As of June 30, 2020, total liabilities increased by 1% or RUB 2,366 mn as
compared to the similar figure as of December 31, 2019 and amounted to RUB
214,590 mn.
The Company's debt portfolio decreased by 6% as compared to the beginning of
the reporting year to RUB 135,526 mn. Long-term loans comprise 83% of the
total portfolio.
The Company's equity in the first half of 2020 increased by 4% to RUB
881,894 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 1H'20 IFRS results before August
31, 2020.
***
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 2020 to the basic level of
RUB 5.00 / kWh. According to the Resolution of the Russian Government No.
1614-r and No. 1615-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. 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's 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.
² 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 hydrogenerating company and the fourth in the world with
over 400 generating facilities. The Group's total electricity generation
capacity including Boguchanskaya HPP is 38.0 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.: 78621
EQS News ID: 1104767
End of Announcement EQS News Service
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(END) Dow Jones Newswires
July 29, 2020 04:10 ET (08:10 GMT)
