July 2, Moscow, Russia.
PJSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY)
announces that the Company's Board of Directors held a meeting in
absentia on June 29, 2020.
The Board of Directors approved the report on
interim results of the business plan execution for the first quarter
of 2020 including the report on execution of investment program as
well as comprehensive rehabilitation and modernization program.
PJSC RusHydro’s investment program amounted to
RUB 5.2 bn including RUB 3.7 bn for comprehensive modernization
program.
PJSC RusHydro’s electricity production in the
first quarter amounted to 22.9 GWh, an increase of 19.2% as compared
to the corresponding period of 2019 and 23% above the plan. The
increase in production was driven by record water inflows to the
reservoirs of the hydropower plants on the Volga and Kama rivers on
the back of abnormally warm winter weather as well as increased water
inflows to the reservoirs of the hydropower plants located in the Far
East.
PJSC RusHydro’s first quarter RAS net profit
reached RUB 14.3 bn, an increase of 14% as compared to the
corresponding period of 2019. EBITDA increased by 25% to RUB 24.4 bn
while revenue increased by 19% year-on-year and reached RUB 34.7 bn.
***
The Board of Directors approved the report on
execution of the company's comprehensive procurement program for the
first quarter of 2020.
In the first quarter, PJSC RusHydro has carried
out 818 procurement procedures, all in electronic format. The effect
of carrying out procurement procedures amounted to RUB 556.19 mn.
***
The Board of Directors approved the report on
implementation of Plan for divestment of none-core assets for the
first quarter of 2020 and made changes to the register of the Group’s
none-core assets. A number of infrastructure facilities not related
to operational activities were included to the register. PJSC
RusHydro has achieved the plan on divestment of none-core assets and
decreased the maintenance cost of none-core assets by RUB 23.6 mn.
The Board has also approved gratuitous transfer of
two traffic roads and bridge not utilized in RusHydro’s operations
to Federal Agency for State Property Management (Rosimushestvo) of
the Saratov region.
***
The Board of Directors took into consideration
performance reports of committees of the Board of Directors for
2019-2020 reporting year.
During the period, 6 committees held 56 meetings,
10 in joint presence where 151 topics covered.
***
The Board of Directors approved the following
transactions for consolidation of RusHydro Group’s power assets in
the Sakhalin region:
PJSC RusHydro’s purchase of 7.68% share in
JSC SEK or of the company’s share capital from PJSC Rosneft Oil
Company%;
Inclusion of JSC SEK’s share in authorized
share capital of JSC RAO ES East for further consolidation of
controlling share in JSC SEK on the balance of PJSC Sakhalinenergo.
The purchase transaction of JSC SEK’s shares and
subsequent transfer to the authorized share capital of JSC RAO ES
East is carried out according to the agreement signed by PJSC
RusHydro, JSC RAO ES East and the government of the Sakhalin region
in 2017 for consolidation of the region’s power assets by PJSC
Sakhalinenergo. JSC SEK is construction management company, which has
carried out investment projects in the power sector of Sakalin region
including construction of the 4th power generation unit of
Yuzhno-Sakhalinskaya CHPP-1 and grid infrastructure.
***
The Board of Directors approved the transaction on
preparation phase of modernization of Vladivostokskaya CHPP-2.
In accordance with the resolution of the
government of the Russian Federation Vladivostokskaya CHPP-2 was
selected among the projects for modernization of thermal generation
in Russia. The project with guaranteed return on investment includes
modernization of part of the generating equipment and reconstruction
of facility’s area for installation of generating equipment.
Implementation of the project will take place once
PJSC RusHydro purchases the facility from JSC DEK. In this respect,
the Board of Directors approved the purchase of the asset from JSC
DEK for market price confirmed by an independent appraiser, as well
as PJSC RusHydro’s operation of the asset afterwards.
***
The Board of Directors took into consideration
information on the execution status of priority projects in the Far
East as of 31.03.2020.
RusHydro is finalizing construction of the CHPP in
the city of Sovetskaya Gavan, has completed design and technical
pricing audit of the first phase of construction of Pevek-Bilibino
two 110kV overhead lines.
***
The Board of Directors has approved the updated
action plan and KPIs for 2019-2021 to transition PJSC RusHydro to
predominant usage of domestic manufactured software.
***
The Board of Directors took into consideration the
report on subsidiaries’ material transactions – intercompany rent
agreements of material value.
***
The Board of Directors took into consideration
information on the results of compliance assessment of Vyacheslav
Pivovarov and Maksim Bystrov with independence criteria provided by
the listing rules of PJSC Moscow Exchange and has determined them as
independent.
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