print version 

Find company
Home About the ProjectContact usFor the Clients
Enter code or ISIN
 
alpha / industry search

Issuers' Corner
Press Releases
Annual Reports Library

Financial Statements
SEC & FFMS Filings
Corporate Presentations
GM Materials
Issues Documents
Corporate Governance Materials
Russian Company Guide
Company Profiles
Corporate Calendar
Markets Corner
Consensus Estimates
Media Corner
News Line


Get updates



Home  Issuers' Corner  Press Releases  RusHydro REGISTER LOG IN

Press Releases > RusHydro  all about the company

company search
all press releases
all RusHydro press releases

RusHydro

February 7, 2018

Results of the Board of Directors on February 5, 2018

February 6, 2018. Moscow, Russia. PJSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces that the Company's Board of Directors held a regular meeting on February 5, 2017.

***

The Board of Directors approved entering into the loan agreement between PJSC RusHydro and JSC Far East and Baikal Region Development Fund as an interested party transaction.

The loan in the amount of not more than RUB 7 bn is raised by RusHydro to finance construction of off-site infrastructure facilities for Sakhalin GRES-2 at an interest of 5% per annum to be repaid no later than June 30, 2026. The Fund, being a state development institution, finances projects in the Far East using direct State support mechanisms. The terms of the loan provided by the Fund, including the discounted rate would help PJSC RusHydro reduce the project’s financing cost as opposed to borrowing at the current market rate.

***

The Board of Directors approved to conduct a major transaction – property lease agreement between JSC Sakhalin GRES-2 and PJSC Sakhalinenergo and authorized representatives of the Company to approve the lease of Sakhalin GRES-2 (1st stage) asset to PJSC Sakhalinenergo at the General Meeting of Shareholders of Sakhalin JSC GRES-2.

The decision was made to transfer the operation of the new electric power plant to PJSC Sakhalinenergo, a RusHydro operating company, once the plant is commissioned in 2018.

The 1st stage of Sakhalin GRES-2 is one of RusHydro’s four priority investment projects in the Far East. The project will replace retired capacity of Sakhalin GRES and increase the power supply of the isolated island power system in the light of long-term economic growth. Commissioning of Sakhalin GRES-2 will create reliability margin and facilitate industrial production growth, manufacturing and housing in the region.

***

The Board of Directors approved the Group’s contributions to the authorized capital of JSC Chukotenergo for the implementation of the initial construction phase of two 110 kV high voltage overhead power lines Pevek – Bilibino.

Capital expenditures of the initial construction phase of overhead lines are measured at RUB 18 bn. Technical examination of the project has taken place. In the first quarter of 2018 conclusion of the state expert evaluation upon which the construction cost of the overhead lines will be determined is expected to be received.

Project financing is expected to be provided in the amount of RUB 13 bn from the Federal budget and RUB 5 bn from the Company’s funds.

High voltage power lines construction project in Chukotka is carried out in connection with upcoming modernization of Chaun-Bilibinskiy energy hub following decommissioning of nuclear power plant units of Bilibino nuclear power plant that has reached the end of its service life. Construction of 110 kV high voltage overhead power lines Pevek – Bilibino will further expand power supply in the Chukotka autonomous region and provide sustainable growth of the Far East energy sector.

***

The Board of Directors reviewed the initiatives to improve reliability at the RusHydro’s power facilities.

Since 2012, RusHydro is carrying out a comprehensive modernization program of hydropower plants. By 2025, the Company plans to replace 55% of its turbines, 42% of its electric power generators and 61% of its transformers. The program will help reverse the aging trend of prime hydropower generation equipment and reduce maintenance costs thanks to automation and reduced number of repairs. Upon completion of the program, the Group’s total capacity will increase by 779 MW while electricity production will increase by 1,375.6 MWh per year.

Since the start of the program 87 hydro turbines, 67 electric power generators and 59 transformers were replaced, representing 43%, 36% and 32% of the planned placement respectively. Replacement of obsolete equipment is essentially important for improving reliability and safety of RusHydro’s facilities.

RusHydro is finalizing development of the long-term program of replacement of obsolete thermal generation capacity in the Far East, providing replacement of combined 1.3 GW of obsolete thermal generation capacity. The Company also proposed mechanisms, providing for return on investment in electric and heat generation capacity in the Far East Federal District. The proposal assumes that return on investment will be guaranteed within thermal generation modernization program due to continuation of investment sources, released due to completion of capacity supply agreements, committed earlier in European part of Russia and Siberia.

The Board of Director took information note.

***

The Board of Director reviewed information on compliance with conditions of RusHydro’s participation in completion of Taishet Aluminium Smelter jointly with UC RUSAL. The Board of Directors has approved preliminary results of structuring participation in the project on September 1, 2017.

According to decision of the Board, substantial conditions for participation in the project, providing for guaranteed stable financial conditions of RusHydro, will be presented to the Board of Directors for approval in the end of first quarter of 2018.

***

The Board of Director approved report on implementation of Charitable and Sponsorship Program in 2017 as well as the Charitable and Sponsorship Program for 2018.

During 2017, designated as the Year of Environment in Russia, RusHydro has implemented six charitable and socially important programs in the field of environmental protection and conservation of biodiversity. One of the implemented projects, new for the Company, was support of Severtsev Institute of Ecology and Evolution of the Russian Academy of Sciences project in the Caucasus, aimed at restoration of population of Persian leopard, an endangered species, included in the Red Book.

During 2017 RusHydro continued “Ecological paths” project – joint effort with the Russian reserves aimed at conservation of natural habitat of rare and endangered animals and plants, cleaning of river banks, fish stocking of reservoirs, cooperation with the Center for conservation of Amur tiger population and the Russian Geographic Society. Environmental responsibility is one of the highest priorities of RusHydro.

In addition to implementation of environmental projects in 2017, RusHydro continued long-term charitable program “Clean Energy” aimed at support of orphanages, education, medical and sports institutions. Joint project with Literature for Children Foundation “Want to know all” book was prepared and published.

In 2018 RusHydro will continue charitable and sponsorship activity.

***

The Board of Director approved report on implementation on Plan of divestment of non-core assets for the fourth quarter of 2016 and 2017.

During that period, RusHydro sold 238 non-core assets with total worth of RUB 193.6 mn. The maintenance of the assets cost the company RUB 23 million per year.

Divested assets include minority stake in PJSC Irkutskenergo, PJSC Krasnoyarskaya HPP, OAO Zharki as well as other assets (apartments and tunnel in Karachay-Cherkessia Republic). A number of non-core assets, such as waste storage site in Amur region were handed over to Administration of Bureya region. An obsolete industrial building and overhead communications network were liquidated.

RusHydro aims to improve asset management efficiency. Divestment of non-core assets, reduction of maintenance cost and sale of minority stakes in companies of no interest to RusHydro Group is in line with the company’s priorities. 






Search by industry

Agriculture, Foresty and Fishing | Chemicals | Engineering | Ferrous Metals | Financial, Insurance & Real Estate | Food & Kindred Products | General Construction | Information Technology | Media & Publishing | Non-Ferrous Metals | Oil & Gas | Pharmaceuticals | Power Industry | Precious Metals and Diamonds | Telecommunications | Transportation | Wholesale & Retail Trade

Search by alpha index

A B C D F G H I K L M N O P R S T U V W X Z


Site Map
© RUSTOCKS.com
Privacy Statement | Disclaimer