JSC RusHydro 92XY RusHydro announces 9 months 2012 RAS results

  JSC RusHydro (92XY) - RusHydro announces 9 months 2012 RAS results

RNS Number : 9414P
JSC RusHydro
31 October 2012
 



October 31^st, 2012

                 RusHydro announces 9 months 2012 RAS results

JSC RusHydro announces  its non-consolidated financial  results under  Russian 
accounting standards (RAS) for the nine months ended September 30, 2012.

Key financials for the 9 months and the 3^rd quarter of 2012 under RAS (in RUR
                                   mn)^^[1]

                                       

                         9M 2012  9M 2011  chg  3Q 2012  3Q 2011    chg
Revenue                   68,276   69,460  -2%   24,127   22,455   7,4%
Operating costs         (41,061) (31,021)  32% (15,364) (11,987)  28,2%
Operating profit          27,215   38,441 -29%    8,763   10,468 -16,3%
Other revenue              3,282   19,810 -83%    1,569      780 101,1%
Other expenses           (5,871) (27,074) -78%  (1,654)  (3,607) -54,1%
EBITDA^^[2]
                          35,214   45,044 -22%   11,490   12,709  -9,6%
 
Net profit                19,963   24,451 -18%    6,712    5,920  13,4%
Net profit (adj.) ^^[3]   17,442   19,467 -10%    7,079    4,882  45,0%

 

 Comparable key financials under RAS (in RUR mn) - excluding 2011 investment
                          component in tariffs^^[4]

                                       

                                       

                  9M 2012 9M 2011   chg 3Q 2012 3Q 2011    chg
Revenue            68,276  59,737 14,3%  24,127  20,135  19,8%
EBITDA             35,214  35,321 -0,3%  11,490  10,389  10,6%
Net profit (adj.)  19,963   9,744   79%   7,079   2,562 176,3%

 

In the  nine months  of 2012,  revenue decreased  by 2%  to RUR  68,276 mn  as 
compared to RUR 69,460 mn in the  nine months of 2011. The underlying  factors 
behind the change in revenue were:

-    decrease in revenue from capacity  sales as of 2012 after liquidation  of 
special investment component in the  capacity prices of RusHydro's  hydropower 
plants, as well as implementation of  tariff regulation for hydro capacity  in 
Siberian price zone instead of competitive capacity prices;

-    pricing environment on  the day-ahead market,  affected by the  following 
factors: a) decrease in electricity  prices in the first  half of the year  in 
the first pricing zone caused by an  increase in price-taking supply due to  a 
change in accounting for minimal  generated capacity in compliance with  rules 
of the  wholesale market  for electricity  and capacity,  and the  absence  of 
suppliers with high price bids among price-determining suppliers in the  first 
months of 2012; b) increase  in electricity prices as  of the 3^rd quarter  of 
2012 following indexation of gas prices;

-    lower electricity sales in non-price zone of the wholesale market due  to 
decrease in supply in the first half of 2012;

-    slight decrease in power generation against the backdrop of normal  water 
inflows to reservoirs in European Russia  and abnormally low inflows to  major 
reservoirs in Siberia.

 

As illustrated in  the table below  (RUR mn), the  dominant share of  revenues 
comes from electricity and capacity sales:

 

 

 

                                                          9M 2012 9M 2011  chg
Electricity sales, incl.                                   47,812  40,776  17%
Sales of electricity under unregulated bilateral            7,185   1,081 565%
contracts
Capacity sales                                             20,118  28,449 -29%
Heat sales                                                     87      82   6%
Other sales                                                   259     153  69%
TOTAL                                                      68,276  69,460  -2%

 

Operating costs increased 32% year-on-year to RUR 41,061 mn.

 

                         Operating costs (in RUR mn)

                                 9M      9M   chg
                                2012    2011
Purchased power               12,963   5,914 119%
Services of SO UES, ATS, CFS   1,785   1,721   4%
Depreciation                   7,999   6,605  21%
Leasing expenses                 995   1,026  -3%
Insurance expenses               573     472  21%
Repairs & maintenance          2,429   2,192  11%
Labor and related expenses     5,476   5,363   2%
Property tax                   3,913   3,478  13%
Water tax                        590     598  -1%
Other                          4,338   3,652  19%
TOTAL                         41,061  31,021  32%

           

Major factors for change in operating costs were:

-    growth in expenses for purchased power in connection with free  bilateral 
agreements for the sale of electricity concluded in January-September 2012  to 
optimize the company's cash flow^^[5];

-    higher depreciation due to commissioning  of a number of facilities  into 
operation,  including  the   coastal  spillway   of  the   Sayano-Shushenskaya 
hydropower plant (put  into operation in  2011) and acquisition  of five  dams 
(dams of Bratskaya, Ust'-Ilimskaya and Irkutskaya hydropower plants) from  the 
Russian state as payment for shares of the additional share issue.

As a result,  operating profit for  the reporting period  decreased by 29%  as 
compared to last year to RUR 27,215 mn.

Other revenue for the  nine months of  2012 was RUR  3,282 mn, other  expenses 
stood at RUR 5,871 mn. The largest  portion of other expenses was losses  from 
the mark-to-market revaluation of  JSC Inter RAO UES  shares in the amount  of 
RUR 1,994 mn.     

EBITDA fell by 22% to RUR 35,214 mn. This was mainly due to the removal of the
investment component in tariffs since 2012.

RusHydro's net profit for the reporting period decreased by 18% to RUR  19,963 
mn. The adjusted net profit for the reporting period fell by 10% to RUR 17,442
mn.

 

RusHydro's key financial position indicators as of September 30^th, 2012

The Company's total assets increased to  RUR 42,070 mn as of September  30^th, 
2012, or 6% against the similar figure as of December 31st, 2011, reaching RUR
702,362 mn.

The growth in assets was mainly  caused by increase in financial  investments, 
including granting long- term loans  in the total amount  of RUR 15,482 mn  to 
the Company's subsidiaries and affiliates.

As of  September  30^th, 2012,  total  obligations  stood at  RUR  149,432  mn 
compared with RUR 124,815 mn as of the beginning of the reporting period.  The 
increase was attributed primarily to raising loans from Sberbank of Russia and
UniCredit Bank Austria AG in the amount of RUR 18,780 mn. The Company's credit
portfolio rose 27% to RUR 87,796 mn; long-term loans make up 94% of the  total 
debt portfolio.

The Company's  equity for  the nine  months of  2012 increased  by 3%  to  RUR 
552,402 mn against RUR 535,402 mn as  of the beginning of the reporting  year. 
This was primarily  due to net  profit distribution for  dividend payments  in 
2011 in the amount of RUR 2,500  mn and increase in non-distributed profit  to 
RUR 19,963 mn based on the profit gained in current period.

The full financial statements in Russian only are available on the Company's
website at: http://www.rushydro.ru/investors/reports

 

For more information:

JSC RusHydro, Investor Relations Department

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

ir@rushydro.ru

 

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.

 

 

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[1] The insulated July-September financials are  not reported in the  official 
financial statements under RAS, they have been calculated and put into the

 

 press release  for  reference. The  quarterly  figures may  not  include  the 
adjustments and revaluations made  by the Company  only for financial  results 
starting from January 1.

[2] EBITDA calculated as gross profit before depreciation.

[3] Net profit adjusted  for the mark-to-market  revaluation of listed  equity 
stakes, reserves for financial investment impairment, assets and potentially

 

 uncollectible accounts receivable.

[4] Until January 1,  2012 RusHydro's  tariffs received  by hydropower  plants 
included special investment component to ensure the safe operation of

 

 hydropower plants  and  pumped storage  plants  as well  as  financing  their 
investments needs. For 2011 the total amount of this tariff mark-up was set at
RUR 12.9 bn. As of 2012, the investment component for RusHydro was cancelled.

[5] According to the regulations  of the Russian  wholesale power market,  the 
supplier of  electricity  intending to  enter  into bilateral  contracts  must 
purchase

 

 the same amount  of electricity from  the market to  fulfill its  contractual 
obligations. In IFRS statements these  costs are netted against  corresponding 
revenue.

                     This information is provided by RNS
           The company news service from the London Stock Exchange
 
END
 
 
STRGCBDGLBXBGDB -0- Oct/31/2012 09:50 GMT