DJ PJSC RusHydro: RusHydro announces 9M 2020 IFRS results
PJSC RusHydro (HYDR)
PJSC RusHydro: RusHydro announces 9M 2020 IFRS results
26-Nov-2020 / 10:41 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 is solely responsible for the content of this announcement.
RusHydro announces 9M 2020 IFRS results
November 26, 2020. Moscow, Russia. RusHydro Group (hereinafter referred to
as the "Group", ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces its
condensed consolidated interim unaudited financial information prepared in
accordance with International Financial Reporting Standards (IFRS) for the
3rd quarter and 9 months of 2020. Historic financial results following
record electricity output, commissioning of new capacities, increase in
electricity consumption in the Far East and effective management.
Key highlights for 9M of 2020:
- RUB 311,233 mn - total revenue (+8.2% y-o-y);
- RUB 90,548 mn - EBITDA (+28.6% y-o-y);
- 29.1% - EBITDA margin (+4.6 p.p. as compared to 9M'19);
- 1.1% decrease in manageable cash cost* growth;
- RUB 60,741 mn - net profit (+72.0%);
- 0.95x - net debt/EBITDA.
Key highlights for 3Q of 2020:
- RUB 93,176 mn - total revenue (+6.5% y-o-y);
- RUB 22,896 mn - EBITDA (+16.5% y-o-y);
- 24.6% - EBITDA margin (+2.1 p.p. as compared to 3Q'19);
- 3.7% decrease in manageable cash cost growth;
- RUB 13,646 mn - net profit (+136.4%).
3Q and 9M 2020/2019 highlights (in RUB mn)
3Q/20 3Q/19 chg. 9M/20 9M/19 chg.
Revenue 93,176 87,486 6.5% 311,233 287,620 8.2%
Operating expenses 77,782 74,218 4.8% 242,395 236,621 2.4%
Other operating 50 144 -65.3% 911 614 48.4%
profit
Operating profit** 15,444 13,412 15.2% 69,749 51,613 35.1%
EBITDA*** 22,896 19,659 16.5% 90,548 70,428 28.6%
Net profit 13,646 5,772 136.4% 60,471 35,157 72.0%
Operating results
In the nine months of 2020, electricity generation by RusHydro Group
amounted to 99,652 GWh (+14.0%), including Boguchanskaya hydropower
plant**** - 112,748 GWh (+13.7%).
Main factors affecting operating results were:
? water inflows to main reservoirs of the hydropower plants above the
normal level; increase of electricity consumption in the Far Eastern
Federal District by 2.1% and increase of heat output in the Far Eastern
Federal District driven by weather conditions.
Detailed review of operational results is available at the Company's
official website at:
http://www.eng.rushydro.ru/investors/IR_news/112083.html [1]
Key events since January 2020
? Electricity production and capacity supply began at Zaramagskaya HPP-1
in North Ossetia. The plant was built under capacity supply agreement
(DPM). Annual revenue contribution of RUB 10 bn.;
? The Group has finalized divestment of its assets in Armenia. The
company's financial debt no-longer has any foreign currency risk.
RusHydro's leverage decreased by RUB 4 bn following completion of the
transaction;
? RusHydro Group completed asset swap with SUEK Group's companies, which
included the exchange of a 100% interest of JSC LUR and a 100% interest in
the share capital of LLC Primorskaya GRES for a 41.98% interest in the
Group's subsidiary PJSC DEK. Following the transaction the share of
coal-fired generation decreased - a positive effect of the Group's ESG
profile;
? 10MW Verkhnebalkarskaya small-scale hydropower plant in
Kabardino-Balkarian Republic with annual average electricity output of 60
GWh has been put into operation. It is the first renewables investment
project in Russia under the capacity supply agreement (DPM);
? Sovetskaya Gavan in Khabarovsk Krai with electric and heat capacity of
126 MW and 200 GCal/h, respectively and average annual electricity output
of 630 GWh has been commissioned.
Revenue
Revenue breakdown in 3Q and 9M 2020/2019 (in RUB mn)
3Q/20 3Q/19 chg. 9M/20 9M/19 chg.
Electricity sales 64,918 60,260 7.7% 207,123 194,309 6.6%
Incl. Far East 7,232 6,087 18.8% 21,696 18,263 18.8%
surcharge*****
Capacity sales 15,188 11,556 31.4% 43,168 34,997 23.3%
Heat and hot water 3,094 3,082 0.4% 27,829 27,113 2.6%
sales
Other sales 6,933 8,583 -19.2% 20,343 20,128 1.1%
Other government 3,043 4,005 -24.0% 12,770 11,073 15.3%
grants
Total revenue 93,176 87,486 6.5% 311,233 287,620 8.2%
In the nine months of 2020, total revenue of the Group increased by 8.2% to
RUB 311,233 mn as compared to the nine months of 2019. The change is
associated with the following key factors:
? increase of RUB 8,171 mn on the back of sales volume growth under
capacity supply agreements (DPM) following commissioning of Zaramagskaya
HPP-1, Verkhnebalkarskaya small HPP and sales volume growth and price
increase at PJSC DEK;
? increase of RUB 7,908 mn following increase of electricity output on the
back of higher water inflows to the majority of HPPs' reservoirs;
? increase of RUB 2,562 mn on the back of tariff, electricity sales volume
growth and subsidies at Far East energy companies segment*****;
? increase of RUB 2,555 mn in Supply companies segment following mainly at
PJSC DEK on the back of increase in output;
? increase of RUB 716 mn from heat and hot water sales following tariff
and production volume growth.
Operating expenses
Operating expenses in 3Q and 9M 2020/2019 (in RUB mn)
3Q/20 3Q/19 chg. 9M/20 9M/19 chg.
Employee benefit 18,293 18,308 -0.1% 57,898 57,383 0.9%
expenses
Third parties expenses 19,065 20,528 -7.1% 55,211 56,842 -2.9%
and other ******
Fuel expenses 11,269 11,871 -5.1% 48,372 49,905 -3.1%
Purchased electricity 13,615 9,385 45.1% 37,815 33,957 11.4%
and capacity
Depreciation 7,316 6,434 13.7% 21,235 18,894 12.4%
Taxes other than on 3,105 2,942 5.5% 9,672 8,687 11.3%
income
Other materials 3,856 3,626 6.3% 8,295 7,788 6.5%
Water usage expenses 1,263 1,124 12.4% 3,897 3,165 23.1%
TOTAL 77,782 74,218 4.8% 242,395 236,621 2.4%
Total operating expenses in the nine months of 2020 as compared to the same
period last year increased by 2.4% to RUB 242,395 mn due to the following
factors:
? increase in purchased electricity and capacity by RUB 3,858 in Retail
segment in PJSC DEK following increase of purchased electricity and in Far
East energy companies segment following substitution of own electricity
production with purchase of electricity from the commissioned floating
nuclear power plant in Pevek in Chukotka;
? increase in depreciation expense by RUB 2,341 mn and increase in taxes
other than on income by RUB 985 mn following commissioning of new
facilities as well as modernization at PJSC RusHydro's facilities;
? increase of employee benefit expenses by RUB 515 mn following indexation
of salaries in accordance with existing collective agreements;
? decrease in fuel expenses mainly in JSC DGK by 1,533 mn following
decrease of electricity output and disposal of Primorskaya GRES.
Profit
In the nine months of the year, the Group's net profit increased by 72.0% to
RUB 60,471 mn.
In the same period EBITDA increased by 28.6% to a record level of RUB 90,548
mn.
Key indicators of financial position
As of September 30, 2020, the Group's assets increased by RUB 50,273 mn or
5.4% to RUB 975,392 mn against the comparable figure as at December 31, 2019
following increase in property, plant & equipment (implementation of the
Group's investment program) and working capital.
As at the end of the reporting period, the Group's liabilities decreased by
RUB 1,833 mn or 0.5% to RUB 353,411 mn as compared to December 31, 2019.
Events after the reporting date
? The Board of Directors appointed Victor Khmarin as acting Chairman of
the Management Board, General Director of the Company following Nikolay
Shulginov's appointment as Minister of Energy of the Russian Federation;
? RusHydro Group put into operation 5.6MW Ust-Dzhegutinskaya small-scale
hydropower plant in Kabardino-Balkarian Republic with annual average
electricity output of 25 GWh under the capacity supply agreement (DPM).
The full financial statements are available on the Company's website at:
http://www.eng.rushydro.ru/investors/reports [2]
* Includes employee benefit expenses, fuel expenses, third parties expenses,
other materials and other costs.
** Operating profit is calculated as the difference between revenue, other
operating profit and operating expenses.
*** EBITDA is calculated as operating profit/loss excluding depreciation of
property, plant and equipment, amortization of intangible assets, impairment
of property, plant and equipment, impairment of financial assets, profit /
loss on disposal of property, plant and equipment and other non-cash items
of operating income and expenses.
**** The Boguchanskaya hydropower plant is part of the Boguchanskiy Energy
and Metals Complex (BEMO), a 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
***** 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 of
RUB 4.00 / kWh, from 1 January 2018 to RUB 4.30 / kWh, from 1 January 2019
to RUB 4.69 / kWh, from 1 January 2020 to RUB 5 / 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
****** includes grid company services
About RusHydro
RusHydro Group is the leading producer of renewable energy in Russia. It is
one of 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 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. One can identify forward-looking statements by
terms such as "expect," "believe," "anticipate," "plan", "aim", "target",
"forecast", "project", "should", "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 and political
conditions, our competitive environment, risks associated with operating in
Russia and rapid technological and market changes 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.: 88558
EQS News ID: 1150763
End of Announcement EQS News Service
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(END) Dow Jones Newswires
November 26, 2020 04:41 ET (09:41 GMT)
