JSC RusHydro (92XY) - Results of the Board of Directors
RNS Number : 7895Q
09 November 2012
Results of the Board of Directors on November 9, 2012
November 9, 2012. Moscow, Russia. JSC RusHydro (ticker symbol: MICEX-RTS, LSE:
HYDR; OTCQX: RSHYY) announces that the Company's Board of Directors held a
meeting in absentia today, November 9, 2012.
The Board of Directors approved the establishment of a unified O&M (operations
and maintenance) company through reorganization of RusHydro's subsidiaries -
JSC «Turboremont-VKK», JSC «Elektroremont-VKK», JSC «REMIK», JSC «SSHPR» - and
their merger with another 100% subsidiary JSC «Hydroremont-VKK».
The establishment of RusHydro's single O&M company is aimed at strengthening
of engineering competency within RusHydro group, O&M cost optimization and
improvement of personnel technical skills as RusHydro pursues its ambitious
comprehensive modernization program. The implementation of this program
requires the improvement of resource base, management system, RusHydro's and
contracting organizations' expertise that provides for necessity of setting up
a joint center of engineering assets control.
The management estimates that the establishment of a unified engineering
company will allow saving ca. RUR 700 mn in O&M costs per year.
The comprehensive modernization program was developed in accordance with
RusHydro's strategic plan after detailed inspection and reliability assessment
of hydrotechnical facilities, equipment and buildings. The program provides
for replacement of ca. 50% of turbines, 40% of generators, 60% of
transformers, plants auxiliaries and power circuit-breakers for the company's
hydropower fleet. This modernization will result in significant reliability,
efficiency and security improvement of RusHydro generating facilities,
increase in installed capacity of ca. 1 GW and sustainable growth of
electricity generation by 2025.
The Board of Directors made the amendments and additions to the list of
non-core assets of RusHydro approved by the Board on February 29, 2012.
These amendments aim to update the data after adjustment of the list of
RusHydro Group is one of Russia's largest generating companies. RusHydro is
the leading producer of renewable energy in Russia with over 70 generating
facilities in Russia and abroad. The company also manages a number of R&D,
engineering and electricity retail companies. Group's thermal assets are
operated by subsidiary - RAO Energy System of East in the Far East of Russia.
Total electricity generation capacity of the Group is 35.2 GW, heat capacity -
16.2 thousand GCal/h.
Russian Federation owns 60.5% in RusHydro, the rest is held by other
institutional and individual shareholders (over 360,000). The company's stock
is traded on the MICEX and RTS stock exchanges, and included in MSCI EM и MSCI
Russia indexes. Company's GDRs in the IOB section of LSE, ADRs - in OTCQX.
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. You 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, rapid
technological and market change in our industries, as well as many other risks
specifically related to RusHydro and its operations.
This information is provided by RNS
The company news service from the London Stock Exchange
STRXKLFBLFFEFBL -0- Nov/09/2012 13:53 GMT
Press spacebar to pause and continue. Press esc to stop.