DJ PJSC RusHydro: RusHydro announces 2020 IFRS results
PJSC RusHydro (HYDR)
PJSC RusHydro: RusHydro announces 2020 IFRS results
02-March-2021 / 12:17 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.
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RusHydro announces 2020 IFRS results
March 2, 2021. Moscow, Russia. RusHydro Group (hereinafter referred to as the "Group", ticker symbol: MOEX, LSE: HYDR;
OTCQX: RSHYY) announces its audited consolidated financial statements for the year ended December 31, 2020, prepared in
accordance with International Financial Reporting Standards (IFRS). Historic financial results following record
electricity output, commissioning of new capacities, increase in electricity consumption in the Far East and
management's focus on operational efficiency.
Key highlights for 2020:
- RUB 429,593 mn - total revenue (+5.6% y-o-y);
- RUB 120,268 mn - EBITDA (+23.3% y-o-y);
- 28.0% - EBITDA margin (+4.0 p.p. as compared to 2019);
- 2.1% decrease in manageable cash cost¹ growth as compared to 2019;
- RUB 46,607 mn - net profit (as compared to RUB 643 mn in 2019);
- 0.99x - net debt²/EBITDA.
Key highlights for 4Q of 2020:
- RUB 118,360 mn - total revenue (-0.5% y-o-y);
- RUB 29,720 mn - EBITDA (+9.6% y-o-y);
- 25.1% - EBITDA margin (+2.3 p.p. as compared to 4Q'19);
- 4.3% decrease in manageable cash cost growth as compared to 4Q'19.
4Q and 2020/2019 highlights (in RUB mn)
4Q/20 4Q/19 chg. 2020 2019 chg.
Revenue 118,360 119,005 -0.5% 429,593 406,625 5.6%
Operating expenses 97,595 99,954 -2.4% 339,990 336,575 1.0%
Other operating profit 240 560 -57.1% 1 151 1 174 -2.0%
Operating profit³ 21,005 19,611 7.1% 90,754 71,224 27.4%
EBITDA? 29,720 27,115 9.6% 120,268 97,544 23.3%
Net profit -13,864 -34,514 -59.8% 46,607 643 x 70
Operating results
In 2020, electricity generation by RusHydro Group amounted to 130,987 GWh (+8.2%), including Boguchanskaya hydropower plant5 - 148,625 GWh (+8.4%).
Main factors affecting production growth 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 1.1% and commissioning of new capacities and modernization of existing facilities.
In 2020, installed capacity of RusHydo Group's coal-fired thermal power plants' decreased by 27% contributing to improvement of the Group's ESG profile.
Detailed review of operational results is available at the Company's official website at:
http://www.eng.rushydro.ru/investors/IR_news/112677.html
Key events since January 2020 - The Group has finalized divestment of its assets in Armenia and 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; - Electricity production and capacity supply began at 346 MW Zaramagskaya HPP-1 in North Ossetia. The plant was built
under capacity supply agreement (DPM). Annual revenue contribution of RUB 10 bn; - 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; - Verhnebalkarskaya, Ust-Dzhegutinskaya and Barsuchkovskaya small hydropower plants have been put into operation in
Kabardino-Balkarian Republic, Karachai Cherkessia Republic and Stavropol region respectively with combined
installed capacity of 20.85 MW under capacity supply agreement for renewables (DPM). Annual combined electricity
output stands at 109 GWh; - First floating solar power plant has been put into operation in the reservoir of Nizhne-Bureyskaya HPP with
installed capacity of 54 kW; - RusHydro Group commissioned 3.9 MW wind-diesel power plant in Tiksi arctic village in the Sakha (Yakutia) Republic.
Revenue
Revenue breakdown in 4Q and 2020/2019 (in RUB mn)
4Q/20 4Q/19 chg. 2020 2019 chg. Electricity sales 71,212 72,404 -1.6% 278,335 266,713 4.4% Incl. Far East surcharge 6 5,281 5,531 -4.5% 26,977 23,794 13.4% Capacity sales 17,247 13,180 30.9% 60,415 48,177 25.4% Heat and hot water sales 13,413 13,532 -0.9% 41,242 40,645 1.5% Other sales 9,487 14,773 -35.8% 29,830 34,901 -14.5% Other government grants 7,001 5,116 36.8% 19,771 16,189 22.1% Total revenue 118,360 119,005 -0.5% 429,593 406,625 5.6%
In 2020, total revenue of the Group increased by 5.6% to RUB 429,593 mn as compared to 2019. The change is associated with the following key factors: - increase of RUB 12,238 mn on the back of sales volume growth under capacity supply agreements (DPM) following
commissioning of Zaramagskaya HPP-1, Verkhnebalkarskaya small HPP, Ust-Dzhegutinskaya small HPP and sales volume
growth and actual price increase at PJSC DEK; - increase of RUB 5,597 mn following increase of electricity output on the back of higher water inflows to the
majority of HPPs' reservoirs; - increase of RUB 3,982 mn in Supply companies segment following mainly at PJSC DEK on the back of increase in
output; - increase of RUB 2,275 mn on the back of tariff, electricity sales volume growth and subsidies at Far East energy
companies segment5; - increase of RUB 597 mn from heat and hot water sales following tariff and production volume growth.
Operating expenses
Operating expenses in 4Q and 2020/2019 (in RUB mn)
4Q/20 4Q/19 chg. 2020 2019 chg. Employee benefit expenses 22,284 22,993 -3.1% 80,182 80,376 -0.2% Third parties expenses and other 7 21,386 28,202 -24.2% 76,597 85,044 -9.9% Fuel expenses 19,474 21,528 -9.5% 67,846 71,433 -5.0% Purchased electricity and capacity 18,221 12,353 47.5% 56,036 46,310 21.0% Depreciation 7,667 6,792 12.9% 28,902 25,686 12.5% Taxes other than on income 3,580 3,446 3.9% 13,252 12,133 9.2% Other materials 3,767 3,472 8.5% 12,062 11,260 7.1% Water usage expenses 1,216 1,168 4.1% 5,113 4,333 18.0% TOTAL 97,595 99,954 -2.4% 339,990 336,575 1.0%
Total operating expenses in 2020 as compared to the same period last year increased by 1.0% to RUB 339,990 mn due to the following factors: - increase in purchased electricity and capacity by RUB 9,726 mainly in Retail segment in PJSC DEK following increase
of purchased electricity; - increase in depreciation expense by RUB 3,216 mn and increase in taxes other than on income by RUB 1,119 mn
following commissioning of new facilities as well as modernization at PJSC RusHydro's facilities; - decrease in fuel expenses mainly in JSC DGK by 3,587 mn following decrease of electricity output and disposal of
Primorskaya GRES; - decrease in third parties expenses and other is primarily driven by absence of technical connection to grid
expenses in 2020 (in 2019 - RUB 7,010 mn).
Profit
In 2020, the Group's net profit increased 70-fold to RUB 46,607 mn.
In the same period, EBITDA increased by 23.3% to an all-time high level of RUB 120,268 mn.
Key indicators of financial position
As of December 31, 2020, the Group's assets increased by RUB 16,916 mn or 1.8% to RUB 942,035 mn against 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 22,149 mn or 6.2% to RUB 333,095 mn as compared to December 31, 2019 following decrease in accounts payable and value of non-deliverable forward contract.
Events after the reporting date - The Board of Directors appointed Victor Khmarin as Chairman of the Management Board, General Director of the
Company; - PJSC RusHydro and PJSC Polyus have signed a bilateral power purchase agreement for clean electricity produced by
Sayano-Shushenskaya HPP.
The full financial statements are available on the Company's website at: http://www.eng.rushydro.ru/investors/ reports
1 Includes employee benefit expenses, fuel expenses, third parties expenses, other materials and other costs.
2 Total net debt at the end of reporting period is calculated as the difference between financial debt and cash & cash equivalents (including bank deposits maturing in one year). Financial debt includes current debt, non-current debt (excluding interest payable), non-deliverable forward contract and cross-currency and interest rate swap.
3 Operating profit is calculated as the difference between revenue, other operating profit and operating expenses.
4 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.
5 Excluding JSC MEK and Primorskaya GRES. 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
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DJ PJSC RusHydro: RusHydro announces 2020 IFRS -2-
6 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
7 includes grid company services and technical connections to grids
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: MSCH TIDM: HYDR LEI Code: 2534005TJN9DX4YWVT97 OAM Categories: 2.2. Inside information Sequence No.: 94646 EQS News ID: 1172350 End of Announcement EQS News Service =------------------------------------------------------------------------------------
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