JSC RusHydro (92XY) - Notice of 1H 2012 IFRS results RNS Number : 2004P JSC RusHydro 22 October 2012 October 22^th, 2012 RusHydro Group announces 1H 2012 IFRS results JSC RusHydro announces its IFRS condensed consolidated interim financial information for the first half of2012. RusHydro Group's financial results for the first half of2011 include the results of a number of retail companies^^1, which were accounted for until the disposal date - March 28^th, 2011, when these companies were contributed to the share capital of OJSC INTER RAO UES in the course of the share issue of the latter. 1H 2012 financial highlights (in RUR mn) 1H 2012 1H 2011 Change,% Total revenue, including 151,155 230,698 -35% Revenue 145,802 226,565 -36% Government grants 5,353 4,133 30% Comparable revenue (less revenue of disposal group) 151,155 134,913 12% Total expenses 132,614 188,553 -30% Comparable expenses (less expenses of disposal group) 132,614 101,384 31% EBITDA^^2 31,149 49,312 -37% Net profit (468) 32,360 -101% Net profit (adjusted) ^^3 13,438 33,072 -59% In the 1^st half of 2012, total revenue decreased by 35% from RUR 230,698 mn to RUR 151,155mn. The Group's total expenses decreased by 30% to RUR 132,614 mn against RUR 188,553 mn in the 1^st half of 2011. Reduction in the Group's revenue and expenses as compared to the same period of previous year is connected with the disposal of retail companies in late March 2011. Comparable revenue (excluding revenue of disposal group) increased by 12% from RUR134,913 mn to RUR 151,155 mn. The change is associated with the following factors: - growth of electricity sales following the acquisition of LLC Energy Supply Company of Bashkortostan on September 12^th, 2011, the financial results of which are included in the Group starting from the acquisition date; - decrease of capacity sales due to removal of the special investment component in tariffs of hydropower plants starting from 2012 and implementation of tariffs for hydropower plants of the 2^nd pricing zone as from the 2^nd quarter of 2011 instead of capacity auctions prices. Comparable expenses (excluding expenses of the disposal group) rose by 31% from RUR 101,384 mn to RUR 132,614 mn. The growth can primarily be attributed to the following factors: - higher electricity purchases and power distribution expenses in the Group's retail segment following the acquisition of LLCEnergy Supply Company of Bashkortostan; - higher fuel expenses for electricity and heat generation by power plants of RAO Energy System of East Group as a result of increased purchases of fuel oil and coal due to disruptions in gas supply together with increased volumes of electricity and heat generation; - accrual of impairment of accounts receivable of RAO Energy System of East in the 1^st half of 2012 as compared to reversal of impairment of accounts receivable in the 1^st half of 2011. In the reporting period, EBITDA decreased by 37% to RUR 31,149 mn compared to RUR 49,312 mn for the same period of the previous year. Decrease of EBITDA is related to a change in the Group's structure and removal of the special investment component in capacity prices starting from 2012. The Group received a net loss of RUR 468 mn compared to RUR 32,360 mn of net profit in the 1^st half of 2011. Net loss occurred due to the following non-cash operations: - loss from impairment of property, plant and equipment in the amount of RUR 4,757 mn in respect of additions related to cash-generating units impaired in previous periods; - loss in the amount of RUR 3,669 mn from remeasurement of the net assets of OJSC DRSK, electricity distribution company in the Far East, classified as a discontinued operation to fair value less costs to sell; - accumulated revaluation loss on shares of OJSC INTER RAO UES in the amount of RUR 6,451 mn recycled to the Income Statement due to significant and prolonged decline in their fair value; - accrual of impairment of accounts receivable in the amount of RUR 3,698 mn resulting from analysis of past due receivables and estimation of their collectability. Key indicators of RusHydro Group's financial position as at June 30, 2012 As at June 30^th, 2012, the Group's assets increased by RUR 28,064 mn to RUR 839,847 mn against the comparable figure as at December 31^st, 2011. The increase in assets is primarily due to additions to the Group's fixed assets and construction in progress (mainly Sayano-Shushenskaya HPP and Zagorskaya GAES-2) and placing of short-term bank deposits mainly due to additional borrowings received. As at the end of the reporting period the Group's liabilities rose by RUR 25,635 mn since December31^st,2011, to RUR 311,759 mn. The increase in the liabilities was mainly caused by new borrowings raised from JSC Sberbank of Russia, JSC Gazprombank, JSC Bank of Moscow, UniCredit Bank AustriaAG. The condensed consolidated financial information of the Group is available on RusHydro's web site: http://www.eng.rushydro.ru/investors/reports/ The results presentation is available at: http://www.eng.rushydro.ru/investors/presentations/results_presentations/2012/ For more information: JSC RusHydro, Investor Relations Department Tel. +7 (495) 225-3232 ext. 1319, 1394, 1607 firstname.lastname@example.org DISCLAIMER 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," "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 and rapid technological and market changes in our industries, as well as many other risks specifically related to RusHydro and its operations. ------------------------------------------------------------------------------ 1JSC Altayenergosbyt, JSC Mosenergosbyt and its subsidiaries, JSC Saint Petersburg Sale Company and its subsidiaries, JSCSaratovenergo, JSC Tambov Energy Retail Companyand JSC United Energy Retail Company. 2EBITDA is calculated as operating profit before depreciation of PP&E and non-cash impairment charges. 3Net profit is adjusted for the effects of impairment on the Group's fixed assets, available-for-sale financial assets, remeasurement of net assets of OJSC "DRSK" to fair value less cost to sell. This information is provided by RNS The company news service from the London Stock Exchange END STRFEWFSEFESESS -0- Oct/22/2012 10:15 GMT
JSC RusHydro 92XY Notice of 1H 2012 IFRS results
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