PJSC RusHydro (HYDR)
RusHydro announces 1H 2019 IFRS results
August 29, 2019. 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 2nd quarter and 1st half of 2019.
Key highlights for the 2Q and 1H of 2019:
2Q and 1H 2019/2018 highlights (in RUB mn) *
Total electricity generation by RusHydro Group's power plants amounted to 29,587 GWh in 2Q'19, a decrease of 16.7% as compared to the corresponding period last year, in 1H'19 - 58,539 (-13.1%). In 2Q'19 total electricity generation by RusHydro Group's hydropower and pumped storage plants decreased by 20.9% to 22,530 GWh, electricity generation by the Group's thermal power plants increased by 0.8% to 6,998 GWh, and electricity generation by renewables increased by 0.1% to 113 GWh as compared to the corresponding period of 2018. Consequently, in 1H'19 of the year total electricity generation by RusHydro Group's hydropower and pumped storage plants decreased by 17.7% to 41,657 GWh, by renewables - by 4.5% to 217 GWh, while electricity generation by the Group's thermal power plants increased by 1.2% to 16,720 GWh as compared to the same period of 2018. Total electricity generation by Boguchanskaya hydropower plant***** in 2Q'19 amounted to 3,619 GWh, an increase of 7.7% as compared to 2Q 2018, in 1H - 7,360 (+19.4%).
Heat output by thermal plants of RAO ES East Subgroup in 2Q'19 increased by 0.2% to 4,627 GCal as compared to the corresponding period last year. In the 1H'19, heat output decreased by 4.9% against 1H'18 to 16,800 GCal.
Total electricity output by RusHydro's retail companies, operating in Chuvashia, Ryazan and Krasnoyarsk regions in the 2Q'19 decreased by 4.8% to 4,305 GWh as compared to 2Q'18. In 1H'19, total output decreased by 5.8% as compared to the corresponding period last year and amounted to 9,902 GWh.
Key events of the 1H of 2019
Revenue breakdown in 2Q and 1H 2019/2018 (in RUB mn)
In 1H'19, total revenue of the Group amounted to RUB 200,848 mn as compared to RUB 201,285 in the 1H'18. The change is associated with the following key factors:
Operating expenses in 2Q and 1H 2019/2018 (in RUB mn)
Total operating expenses in the 1H'19 amounted to RUB 163,117 mn as compared 152,198 mn in the 1H'18 due to the following factors:
In the 1H'19, EBITDA decreased by 15.3% to RUB 50,770 mn as compared to RUB 59,949 mn in the same period of 2018.
The Group's net profit decreased by 23.8% to RUB 29,385 mn. Adjusted net profit in the reporting period amounted to RUB 31,109 - a 22.6% decrease as compared to the same period last year.
The difference between the reported and adjusted profit is attributed mainly to the following non-cash effects (before income tax) and recognition of change in fair value of the derivative financial instrument:
Key indicators of financial position
As of June 30, 2019, the Group's assets increased by RUB 24,702 mn or 2.7% to RUB 956,633 mn against RUB 931,931 as of December 31, 2018. Change in assets is primarily attributable to:
As at the end of the reporting period, the Group's liabilities increased by RUB 12,202 mn or 3.5% to RUB 357,914 mn as compared to RUB 345,712 as of December 31, 2018. The structure of liabilities has changed accordingly: long-term liabilities decreased by RUB 18,655 mn and short-term liabilities increased by RUB 30,857 mn mainly due to increase of accounts payable, current debt and current portion of non-current debt.
As of June 30, 2019 the liability on issued shares in the amount of RUB 7,000 mn is reflected, as additional share issue in the course of implementation of preemptive right, under which PJSC RusHydro placed 7,000,092,298 shares among shareholders, was not completed.
The fair value of the non-deliverable forward contract, recognized under the terms of transaction with PJSC VTB Bank, decreased from RUB 31,896 mn (as of December 31, 2018) to RUB 25,591 mn (as of June 30, 2019) following increase of market price of RusHydro's shares in 1H'19.
Events after the reporting date
The full financial statements are available on the Company's website at: http://www.eng.rushydro.ru/investors/reports
* As of January 1, 2018 the Group has changed its accounting policy to reflect the initial cost of property plant and equipment excluding accumulated depreciation and impairments. As a result accumulated depreciation for the 1H of 2018 has been restated.
** 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, gains on changes in the carrying value of financial assets at fair value through profit or loss, impairment of property, plant and equipment, impairment of other assets, impairment of financial assets, loss on disposal of property, plant and equipment, loss on disposal of other non-current assets and other non-monetary items of operating income and expenses.
**** Net profit is adjusted for the effects of recognition of financial income/expense arising from the change in fair value of non-deliverable forward contract, impairment of fixed assets, impairment of other assets, impairment of financial assets, profit / loss on disposal of property, plant and equipment, loss on disposal of other non-current assets as well as other operating income arising from the change in fair value of financial assets measured through profit or loss.
***** 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. 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.
******* Here and hereinafter the operating expenses do not include impairment loss.
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 39.4 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. Group's GDRs are traded in the IOB section of LSE, ADRs - in OTCQX.
For more information:
Investor Relations Department
Tel. +7 (495) 122 0555 ext. 1607, 1319, 1304
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.
|OAM Categories:||2.2. Inside information|
|EQS News ID:||865509|
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