July 29, 2020. Moscow,
Russia. PJSC RusHydro (MOEX, LSE: HYDR; OTCQX: RSHYY)
announces non-consolidated financial results under Russian accounting
standards (RAS) for the six months ended June 30, 2020.
Key
highlights:
EBITDA – RUB 49,537 mn (+26%);
Reported net profit – RUB 29,870 mn (+41%);
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 expenses1.
In 1H20, the surcharge totaled RUB 20,529 mn, in the 1H19 – RUB
17,496 mn; Adjusted for the surcharge revenue and expenses (here and
below in the text) were:
Revenue – RUB 70,509 mn (+18%);
Operating expenses – RUB 29,748 mn (+4%).
Key
financials for 2Q and 1H 2020 under RAS (in RUB mn), excluding
surcharge
|
1H’20
|
1H’19
|
chg
|
2Q’20
|
2Q’19
|
chg
|
Revenue (adj. for surcharge)
|
70,509
|
59,675
|
18%
|
35,856
|
30,594
|
17%
|
Operating expenses (adj. for surcharge)
|
(29,748)
|
(28,651)
|
4%
|
(15,064)
|
(14,918)
|
1%
|
Operating profit
|
40,761
|
31,024
|
31%
|
20,792
|
15,676
|
33%
|
EBITDA2
|
49,537
|
39,383
|
26%
|
25,179
|
19,943
|
26%
|
Net profit
|
29,870
|
21,240
|
41%
|
15,555
|
8,703
|
79%
|
Revenue
In the first half of 2020, revenue increased by
18% or RUB 10,834 mn to RUB 70,509 mn as compared to the
corresponding period last year on the back of 33% output growth by
HPPs following increase of water inflows to the majority of
reservoirs and commissioning of Zaramagskaya HPP-1.
Revenue breakdown (RUB mn)
|
1H’20
|
1H’19
|
chg
|
2Q’20
|
2Q’19
|
chg
|
Electricity sales
|
44,559
|
37,892
|
18%
|
23,221
|
20,378
|
14%
|
Capacity sales
|
25,716
|
21,601
|
19%
|
12,527
|
10,130
|
24%
|
Other sales
|
234
|
182
|
29%
|
108
|
86
|
26%
|
TOTAL
|
70,509
|
59,675
|
18%
|
35,856
|
30,594
|
17%
|
Operating
expenses
Operating expenses in the first half of 2020
increased by 4% to RUB 29,748 mn.
The main changes were observed in the following
items:
Purchased electricity and capacity (decrease
of RUB 869 mn) due to decrease in day-ahead market prices;
Water tax (increase of RUB 470 mn) due to HPP
production growth and tariff increase;
Rent (intercompany, increase of RUB 134 mn)
due to rent agreement of Zaramagskaya HPP-1 property.
Operating expenses breakdown (in RUB mn)
|
1H’20
|
1H’19
|
chg
|
2Q'20
|
2Q'19
|
chg
|
Depreciation
|
8,776
|
8,359
|
5%
|
4,387
|
4,268
|
3%
|
Labor expenses, taxes and contributions
|
3 740
|
3 669
|
2%
|
2,077
|
2,034
|
2%
|
Purchased electricity and capacity
|
3,598
|
4,467
|
-19%
|
1,510
|
2,144
|
-30%
|
Property tax
|
3,154
|
3,019
|
4%
|
1,578
|
1,523
|
4%
|
Other third-party services
|
1,948
|
1,619
|
20%
|
927
|
841
|
10%
|
Rent
|
1,667
|
711
|
134%
|
912
|
304
|
200%
|
Power system services
|
1,621
|
1,527
|
6%
|
816
|
767
|
6%
|
Water tax
|
1,360
|
890
|
53%
|
756
|
480
|
58%
|
Repairs and maintenance
|
1,137
|
1,492
|
-24%
|
660
|
994
|
-34%
|
Security expenses
|
906
|
879
|
3%
|
440
|
441
|
-0,2%
|
Insurance expenses
|
826
|
832
|
-1%
|
423
|
431
|
-2%
|
Other
|
1 015
|
1 187
|
-14%
|
578
|
691
|
-16%
|
TOTAL
|
29,748
|
28,651
|
4%
|
15,064
|
14,918
|
1%
|
Profit
Operating profit for the first half of 2020
increased 31% as compared to the same period last year and amounted
to RUB 40,761 mn.
EBITDA in the first half of 2020 increased by 26%
to RUB 49,537 from RUB 39,383 in 1H’19.
Net profit in the reporting period increased by
41% to RUB 29,870 mn.
RusHydro's
financial position as of June 30, 2020
The Company's total assets increased by RUB 32,290
mn as of June 30, 2020, or 3% against the similar figure as of
December 31, 2019, reaching RUB 1,096,484 mn.
As of June 30, 2020, total liabilities increased
by 1% or RUB 2,366 mn as compared to the similar figure as of
December 31, 2019 and amounted to RUB 214,590 mn.
The Company's debt portfolio decreased by 6% as
compared to the beginning of the reporting year to RUB 135,526 mn.
Long-term loans comprise 83% of the total portfolio.
The Company's equity in the first half of 2020
increased by 4% to RUB 881,894 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
1H’20 IFRS results before August 31, 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 2020 to
the basic level of RUB 5.00 / kWh. According to the Resolution
of the Russian Government No. 1614-r and No. 1615-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. 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’s 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.
2 EBITDA
calculated as gross profit before depreciation.
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