JSC RusHydro 92XY Notice of 1H 2012 IFRS results

  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%
                                                       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 

- 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% 
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 

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:


The results presentation is available at:


For more information:

JSC RusHydro, Investor Relations Department

Tel. +7 (495) 225-3232 ext. 1319, 1394, 1607



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


STRFEWFSEFESESS -0- Oct/22/2012 10:15 GMT
Press spacebar to pause and continue. Press esc to stop.