April 29, 2020. Moscow,
Russia. PJSC
RusHydro (MOEX, LSE: HYDR; OTCQX: RSHYY) announces non-consolidated
financial results under Russian accounting standards (RAS) for the
first quarter ended March 31, 2020.
Key
highlights:
EBITDA – RUB 24,358 mn (+25%);
Reported net profit – RUB 14,315 mn (+14%);
Since July 1st 2017, a surcharge to capacity
prices in 1st and 2nd price zones in order to attain base level of
end-user tariffs in the Far East of Russia is reflected in PJSC
RusHydro’s revenue and operating expenses[1].
In 1Q20, the surcharge totaled RUB 10,264 mn, in the 1Q19 – RUB
8,748 mn; Adjusted for the surcharge revenue and expenses (here and
below in the text) were:
Revenue – RUB 34,653 mn (+19%);
Operating expenses – RUB 14,684 mn (+7%).
Key
financials for 1Q 2020 under RAS (in RUB mn), excluding surcharge
|
1Q’20
|
1Q’19
|
chg
|
Revenue (adj. for surcharge)
|
34,653
|
29,081
|
+19%
|
Operating expenses (adj. for surcharge)
|
(14,684)
|
(13,733)
|
+7%
|
Operating profit
|
19,969
|
15,348
|
+30%
|
EBITDA[2]
|
24,358
|
19,440
|
+25%
|
Net profit
|
14,315
|
12,537
|
+14%
|
Revenue
In the first quarter of 2020, revenue increased by
19% or RUB 5,572 mn to RUB 34,653 mn as compared to the corresponding
period last year on the back of output growth by HPPs following
increase of water inflows to the majority of reservoirs.
Revenue breakdown (RUB mn)
|
1Q’20
|
1Q’19
|
chg
|
Electricity sales
|
21,338
|
17,513
|
+22%
|
Capacity sales
|
13,189
|
11,472
|
+15%
|
Other sales
|
126
|
96
|
+31%
|
TOTAL
|
34,653
|
29,081
|
+19%
|
Operating
expenses
Operating expenses in the first quarter of 2020
increased by 7% to RUB 14,684 mn.
The main changes were observed in the following
items:
Purchased electricity and capacity (decrease
of RUB 235 mn) due to decrease in day-ahead market prices;
Water tax (increase of RUB 194 mn) due to HPP
production growth;
Rent (intercompany, increase of RUB 348 mn)
due to rent agreement of Zaramagskaya HPP-1 property.
Operating expenses breakdown (in RUB mn)
|
1Q’20
|
1Q’19
|
chg
|
Depreciation
|
4,389
|
4,091
|
+7%
|
Purchased electricity and capacity
|
2,088
|
2,323
|
-10%
|
Labor expenses, taxes and contributions
|
1,663
|
1,635
|
+2%
|
Property tax
|
1,576
|
1,496
|
+5%
|
Other third-party services
|
1,021
|
778
|
+31%
|
Power system services:
|
805
|
760
|
+6%
|
Rent
|
755
|
407
|
+86%
|
Water tax
|
604
|
410
|
+47%
|
Repairs & maintenance
|
477
|
498
|
-4%
|
Security expenses
|
466
|
438
|
+6%
|
Insurance expenses
|
403
|
401
|
+0.4%
|
Other
|
437
|
496
|
-12%
|
TOTAL
|
14,684
|
13,733
|
+7%
|
Profit
Operating profit for the first quarter of 2020
increased 30% as compared to the same period last year and amounted
to RUB 19,969 mn.
EBITDA in the first quarter of 2020 increased by
25% to RUB 24,358 from RUB 19,440 in 1Q’19.
Net profit in the reporting period increased by
14% to RUB 14,315 mn.
RusHydro's
financial position as of March 31, 2020
The Company's total assets increased by RUB 25,315
mn as of March 31, 2020, or 2% against the similar figure as of
December 31, 2019, reaching RUB 1,089,509 mn.
As of March 31, 2020, total liabilities increased
by 5% or RUB 10,999 mn as compared to the similar figure as of
December 31, 2019 and amounted to RUB 223,224 mn.
The Company's debt portfolio increased by 2% as
compared to the beginning of the reporting year and reached RUB
147,041 mn. Long-term loans comprise 71% of the total portfolio.
The Company's equity in the first quarter of 2020
increased by 2% to RUB 866,285 mn against RUB 851,970 mn as of the
beginning of the reporting year.
The full financial statements are available on the
Company’s website at:https://www.eng.rushydro.ru/investors/reports
RusHydro Group will announce consolidated
1Q’20 IFRS results in June,, 2020.
[1]
In July 2017, the Resolution of the Russian Government No. 895
“On reaching basic rates (tariffs) for electric power (capacity)
in the territories of the Far East Federal region (the “Far
East”)” became effective, under which rates for consumers in the
territories of the Far East should be reduced starting from 1
January 2017 to the basic level (RUB 4.00 / kWh). According to the
Resolution of the Russian Government No. 1614-r of 28 July 2017,
PJSC RusHydro was appointed as the recipient of a premium to the
price for capacity provided by the Company in the price zones of the
wholesale market under CCS agreements. The premium to the price for
capacity is set in order to achieve the basic level of rates
(tariffs) for electricity (capacity) planned for the next regulation
period in the Far East constituent regions. Within the amounts
defined by Resolution No. 1615-r of the Russian Government dated 28
July 2017, the Company translates the collected amounts of margin in
the form of free-of-charge targeted contributions to the budgets of
the respective regions. The Group companies being guaranteeing
suppliers will receive compensation for the shortage of income
related to the reduction of rates, through subsidies from the Far
East constituent regions. In November 2017, according to the
Resolution of the Russian Government No. 2527-r of 15 November 2017
the rate for consumers in the territories of the Far East basic was
set at RUB 4.30 / kWh.
[2]
EBITDA calculated as gross profit before depreciation.
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