JSC RusHydro (MOEX, LSE: HYDR; OTCQX: RSHYY) announces its
non-consolidated financial results under Russian accounting standards
(RAS) for the full year ended December 31, 2015.
Key highlights:
4Q 2015 revenue – RUB 29,076 mn (+10%), for
2015 – RUB 107,099 mn (-1%);
2015 operating expenses – RUB 63,969 mn
(-2%);
4Q 2015 EBITDA – RUB 14,343 mn (+25%), 2015
EBITDA – RUB 57,387 mn (+2%);
EBITDA margin in 4Q 2015 – 49% (+6 p.p.),
in 2015 – 54% (+2 p.p.);
Reported net profit for 2015 – RUB 30,022
mn (-2%), adjusted net profit – RUB 31,142 mn (-5%).
Key financials for 2014/2015 under RAS (in RUB mn)
|
2015
|
2014
|
chg
|
4Q’15
|
4Q’14
|
chg
|
Revenue
|
107,099
|
108,478
|
-1%
|
29,076
|
26,535
|
10%
|
Operating expenses
|
(63,969)
|
(65,464)
|
-2%
|
(18,411)
|
(18,484)
|
0%
|
Operating profit
|
43,130
|
43,014
|
0%
|
10,665
|
8,051
|
32%
|
EBITDA[i]
|
57,387
|
56,052
|
2%
|
14,343
|
11,431
|
25%
|
Net profit
|
30,022
|
30,729
|
-2%
|
2,464
|
3,420
|
-28%
|
Net profit (adj.)[ii]
|
31,142
|
32,876
|
-5%
|
5,969
|
4,184
|
43%
|
Revenue
In 2015, revenue decreased by 1% to RUB 107,099 mn
as compared to RUB 108,478 mn for 2014. The underlying factors behind
the change in revenue were:
decrease in production and electricity output
by hydropower plants of PJSC RusHydro as a result of: a) low water
level in the basin of the Angara-Yenisey cascade; b) lower than
long-run average water inflow and water reserves in reservoirs of
the Volga-Kama cascade in the 1st half of 2015;
increase in “day-ahead” prices in the 2nd
pricing zone due to decrease in electricity generation by hydropower
plants and higher load of fossil fuel fired power plants;
increase in capacity sales following partial
liberalization of hydro capacity market in the second price zone
from May 1, 2014[iii].
Revenue breakdown (RUB mn)
|
2015
|
2014
|
chg
|
4Q’15
|
4Q’14
|
chg
|
Electricity sales
|
73,262
|
76,532
|
-4%
|
19,569
|
17,458
|
12%
|
Capacity sales
|
32,583
|
30,678
|
6%
|
9,177
|
8,749
|
5%
|
Other sales
|
1,254
|
1,268
|
-1%
|
330
|
328
|
1%
|
TOTAL
|
107,099
|
108,478
|
-1%
|
29,076
|
26,535
|
10%
|
Operating expenses
Operating expenses in January-December 2015
decreased by 2% to RUB 63,969 mn as compared to the same period of
2014.
Operating expenses breakdown (in RUB mn)
|
2015
|
2014
|
chg
|
4Q’15
|
4Q’14
|
chg
|
Depreciation
|
14,257
|
13,038
|
9%
|
3,678
|
3,380
|
9%
|
Purchased electricity and capacity
|
13,970
|
17,975
|
-22%
|
4,020
|
4,689
|
-14%
|
Labor expenses
|
10,113
|
10,635
|
-5%
|
3,141
|
3,382
|
-7%
|
Property tax
|
6,640
|
6,123
|
8%
|
1,676
|
1,528
|
10%
|
Repairs & maintenance
|
3,891
|
3,615
|
8%
|
1,647
|
1,353
|
22%
|
Other third-party services
|
3,236
|
2,624
|
23%
|
1,100
|
1,073
|
3%
|
Services of System Operator, ATS, CFS
|
2,884
|
2,770
|
4%
|
751
|
689
|
9%
|
Security expenses
|
1,729
|
1,660
|
4%
|
446
|
422
|
6%
|
Insurance expenses
|
1,482
|
1,185
|
25%
|
402
|
326
|
23%
|
Rent
|
1,230
|
1,140
|
8%
|
338
|
323
|
5%
|
Water tax
|
934
|
836
|
12%
|
247
|
170
|
45%
|
Leasing expenses
|
479
|
706
|
-32%
|
259
|
109
|
138%
|
Other
|
3,124
|
3,157
|
-1%
|
706
|
1,040
|
-32%
|
TOTAL
|
63,969
|
65,464
|
-2%
|
18,411
|
18,484
|
0%
|
Major factors of change in operating expenses were
(among the highest constituent expenses):
decrease in purchased electricity and
capacity as a result of: a) lower consumption of electricity and
capacity for own needs due to decrease in electricity output; b)
lower consumption of electricity for own needs of PSPPs; c) decrease
in purchased electricity for sale under free bilateral agreements
due to lower sales under these contracts;
increase in depreciation and property tax as
a result of commissioning of new fixed assets as well as
reconstruction and modernization of operating assets;
decrease in labor expenses after headcount
optimization during 2015.
Profit
Operating profit for the period was flat
year-on-year.
EBITDA increased by 2% as compared to the same
period of 2014 and amounted to RUB 57,387 mn.
RusHydro's net profit for the reporting period
decreased by 2% to RUB 30,022 mn. Net profit adjusted for non-cash
items decreased by 5% to RUB 31,142 mn as compared to RUB 32,876 mn
in the same period of the previous year.
The difference between the reported and adjusted
net profit is attributed mainly to the following non-cash effects:
gain from mark-to-market revaluation of
listed equity stakes in the amount of RUB 781 mn;
regained reserves on accounts receivable in
the amount of RUB 840 mn;
expenses (net) on provision for impairment of
financial investments in the amount of RUB 3,098 mn;
gain (net) from other reserves in the amount
of RUB 357 mn.
RusHydro's financial position as of December 31,
2015
The Company's total assets increased by RUB 37,051
mn as of December 31, 2015, or 4% against the similar figure as of
December 31, 2014, reaching RUB 892,631 mn.
As of December 31, 2015, total liabilities
increased by 10% or RUB 13,042 mn and amounted to RUB 150,092 mn.
The Company's debt portfolio rose by 9% from the
beginning of the year from RUB 114,177 mn to RUB 124,010 mn;
long-term loans make up 85% of total debt portfolio.
The Company's equity for 2015 increased by 3% to
RUB 742,469 mn against RUB 718,460 mn as of the beginning of the
reporting year.
[i]
EBITDA calculated as gross profit before depreciation.
[ii]
Net profit adjusted for the mark-to-market revaluation of listed
equity stakes, provisions for financial investments and other assets
impairment, provisions for potentially uncollectible accounts
receivable and other, estimated liabilities. This indicator is not
reported in the official financial statements under RAS and has been
calculated and put into the press release for reference.
[iii]
According to the decree of the government of the Russian Federation
No. 374 of April 28, 2014, “On amendments to the Regulations of
wholesale electricity and capacity market in terms of special
aspects of participation of gencos, owners of hydropower plants
located in the 2nd pricing zone, in the wholesale market” from May
1, 2014 till December 31, 2015, 35% of capacity of the hydropower
plants located in the 2nd pricing zone is sold at the regulated
tariffs based on the results of the competitive capacity auctions
(KOM). Actual decrease in capacity sale price of KOM is related to
decrease in capacity tariff of the Sayano-Shushenskaya HPP in the
2nd half of 2013 from RUB 86,825.85 per MW to RUB 35,955.02 per MW.
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