PJSC RusHydro (HYDR) RusHydro announces 9M 2019 IFRS results December 12, 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 3rd quarter and 9 months of 2019. Key highlights for the 3Q and 9M of 2019:
� 3Q and 9M 2019/2018 highlights (in RUB mn)
� Operating results Total electricity generation by RusHydro Group's power plants amounted to 33,295 GWh in 3Q'19, an increase of 3.3% as compared to the corresponding period last year, in 9M'19 - 91,888 (-7.7%). In 3Q'19 total electricity generation by RusHydro Group's hydropower and pumped storage plants increased by 4.6% to 27,168 GWh, electricity generation by the Group's thermal power plants decreased by 2.6% to 6,036 GWh, and electricity generation by renewables increased by 4.5% to 91 GWh as compared to the corresponding period of 2018. Consequently, in 9M'19 of the year total electricity generation by RusHydro Group's hydropower and pumped storage plants decreased by 10.1% to 68,824 GWh, by renewables - by 2.0% to 308 GWh, while electricity generation by the Group's thermal power plants increased by 0.1% to 22,755 GWh as compared to the same period of 2018. Total electricity generation by Boguchanskaya hydropower plant***** in 3Q'19 amounted to 4,426 GWh, an increase of 7.4% as compared to 3Q 2018, in 9M - 11,785 (+14.6%). Heat output by RusHydro Group's thermal plants in the Far Eastern Federal Districtin 3Q'19 increased by 13.2% to 2,168 GCal as compared to the corresponding period last year. In 9M'19, heat output decreased by 3.1% against 9M'18 to 18,967 GCal. Total electricity output by RusHydro's retail companies, operating in Chuvashia, Ryazan and Krasnoyarsk regions in the 3Q'19 decreased by 1.6% to 4,127 GWh as compared to 3Q'18. In 9M'19, total output decreased by 4.5% as compared to the corresponding period last year and amounted to 14,051 GWh. Key events in January - September 2019
� Revenue � Revenue breakdown in 3Q and 9M 2019/2018 (in RUB mn)
� In 9M'19, total revenue of the Group amounted to RUB 287,620 mn as compared to RUB 288,670 in the 9M'18. The change is associated with the following key factors:
� Operating expenses******* � Operating expenses in 3Q and 9M 2019/2018 (in RUB mn)
� Total operating expenses in the 9M'19 amounted to RUB 236,621 mn as compared 225,005 mn in the 9M'18 due to the following factors:
� Profit In the 9M'19, EBITDA decreased by 13.1% to RUB 70,429 mn as compared to RUB 81,016 mn in the same period of 2018. The Group's net profit decreased by 23.5% to RUB 35,157 mn. Adjusted net profit in the reporting period amounted to RUB 39,842 - a 22.1% 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 September 30, 2019, the Group's assets increased by RUB 25,417 mn or 2.7% to RUB 957,348 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 7,077 mn or 2.0% to RUB 352,789 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 11,151 mn and short-term liabilities increased by RUB 18,228 mn mainly due to increase of accounts payable, current debt and current portion of non-current debt. � As of September 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 27,170 mn (as of September 30, 2019) following increase of market price of RusHydro's shares in 9M'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 9 months 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. � � 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 in Russia and Armenia. The Group's total electricity generation capacity including Boguchanskaya HPP is 39.8 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. Company's GDRs 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. |
ISIN: | US7821834048, RU000A0JPKH7 |
Category Code: | MSCM |
TIDM: | HYDR |
LEI Code: | 2534005TJN9DX4YWVT97 |
OAM Categories: | 2.2. Inside information |
Sequence No.: | 35000 |
EQS News ID: | 934559 |
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End of Announcement | EQS News Service |
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