JSC RusHydro (92XY) - RusHydro announces 9 months 2012 RAS results
RNS Number : 9414P
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
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%
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.) ^^ 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^^
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%
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
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^^;
- 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
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
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
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
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.
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.
 EBITDA calculated as gross profit before depreciation.
Net profit adjusted for the mark-to-market revaluation of listed equity
stakes, reserves for financial investment impairment, assets and potentially
uncollectible accounts receivable.
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.
According to the regulations of the Russian wholesale power market, the
supplier of electricity intending to enter into bilateral contracts must
the same amount of electricity from the market to fulfill its contractual
obligations. In IFRS statements these costs are netted against corresponding
This information is provided by RNS
The company news service from the London Stock Exchange
STRGCBDGLBXBGDB -0- Oct/31/2012 09:50 GMT
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