31st Jul 2012 11:04
July 31th, 2012
RusHydro announces 1H 2012 RAS results
JSC RusHydro (ticker symbol: MICEX-RTS, LSE: HYDR; OTCQX: RSHYY) announces its non-consolidated financial results under Russian accounting standards (RAS) for the first six months of 2012.
Key financials under RAS (in RUR mn)
1H 2012 | 1H 2011 | chg | |
Revenue | 44,149 | 47,005 | -6% |
Operating costs | (25,697) | (19,033) | 35% |
Operating profit | 18,452 | 27,971 | -34% |
Other revenue | 1,713 | 19,029 | -91% |
Other expenses | (4,217) | (23,638) | -82% |
EBITDA | 23,725 | 32,335 | -27% |
Net profit | 13,251 | 18,531 | -28% |
Net profit (adj.) | 10,363 | 14,585 | -29% |
Comparable key financials under RAS (in RUR mn) - excludes investment component in tariffs3
1H 2012 | 1H 2011 | chg | |
Revenue | 44,149 | 39 602 | +11% |
EBITDA | 23,725 | 24 932 | -5% |
Net profit (adj.) | 10,363 | 7 182 | +48% |
For the first six months of 2012 revenue decreased by 6% to RUR 44,149 mn as compared to RUR 47,005 mn in the 1st half of 2012. The underlying factors behind this decrease are:
- decrease in revenue from capacity sales as of 2012 after liquidation of special investment component in the capacity prices of hydropower plants, as well as implementation of tariff regulation for hydro capacity in Siberian price zone as of the 2nd quarter 2011 (instead of competitive capacity prices);
- decrease in electricity prices on the day-ahead market in the European price zone caused by an increase in price-taking supply, due to a change in accounting for minimal generated capacity in compliance with Rules of the wholesale market for electricity and capacity, and the absence of suppliers with high price bids among price-determining suppliers in the 1st half 2012.
As illustrated in the table below (RUR mn), the dominant share of revenues comes from electricity and capacity sales:
1H 2012 | 1H 2011 | chg | |
Electricity sales, incl. | 30,532 | 26,899 | 14% |
Sales of electricity under unregulated bilateral contracts | 4,171 | 128 | 3,159% |
Capacity sales | 13,369 | 19,941 | -33% |
Heat sales | 76 | 71 | 7% |
Other sales | 172 | 94 | 83% |
TOTAL | 44,149 | 47,005 | -6% |
Operating costs increased 35% year-on-year to RUR 25,697 mn.
Operating costs (in RUR mn)
1H 2012 | 1H 2011 | chg | |
Purchased power | 7,685 | 3,189 | 141% |
Services of SO UES, ATS, CFS | 1,149 | 1,147 | 0% |
Depreciation | 5,273 | 4,364 | 21% |
Leasing expenses | 682 | 675 | 1% |
Insurance expenses | 381 | 312 | 22% |
Repairs & maintenance | 1,394 | 1,291 | 8% |
Labor expenses | 3,130 | 3,011 | 4% |
Property tax | 2,605 | 2,315 | 13% |
Water tax | 411 | 396 | 4% |
Other | 2,989 | 2,333 | 28% |
TOTAL | 25,697 | 19,033 | 35% |
Major factors for change in operating costs were:
- growth in expenses for purchased power in connection with free bilateral agreements for the sale of electricity concluded in the 1st half of 2012 to optimize the company's cash flow;
- higher depreciation due to commissioning of a number of facilities into operation, including the coastal spillway of the Sayano-Shushenskaya hydropower plant (put into operation in 2011) and acquisition of five dams (dams of Bratskaya, Ust'-Ilimskaya and Irkutskaya hydropower plants) from the Russian state as payment for shares of the additional share issue.
As a result, operating profit decreased by 34% as compared to last year to RUR 18,452 mn.
Other revenue for the first six months of 2012 was RUR 1,713 mn, other expenses stood at RUR 4,217 mn. The largest portion of other expenses was losses from the mark-to-market revaluation of JSC Inter RAO UES shares in the amount of RUR 1,793 mn.
EBITDA fell by 27% to RUR 23,725 mn. This was mainly due to the removal of the investment component in tariffs since 2012.
RusHydro's net profit for the reporting period decreased 28% to RUR 13,251 mn. The adjusted net profit for the reporting period fell by 3% to RUR 10,363 mn.
RusHydro's key financial position indicators as of June 30th, 2012
The Company's total assets increased RUR 35,407 mn as of June 30th, 2012, or 5% against the similar figure as of December 31st, 2011, reaching RUR 695,699 mn.
The growth in assets was mainly caused by increase in financial investments. This can be attributed to:
- granting long- and short-term loans in the total amount of RUR 9,177 mn to the Company's subsidiaries and affiliates;
- placing short-term bank deposits (up to three months) in the total amount of RUR 8,074 mn.
As of June 30th, 2011, total obligations stood at RUR 149,472 mn compared with RUR 124,815 mn as of the beginning of the reporting period. The increase was attributed primarily to raising loans from Sberbank of Russia and UniCredit Bank Austria AG in the amount of RUR 17,325 mn. The Company's credit portfolio rose 26% to RUR 87,099 mn; long-term loans make up 94% of the total debt portfolio.
The Company's equity in the 1st quarter 2012 increased 1% to RUR 546,153 mn against RUR 535,402 mn as of the beginning of the reporting year. This was primarily due to a RUR 17,371 mn decrease in non-distributed profit.
The full financial statements in Russian only are available on the Company's website.
RusHydro expects to post its 1H 2012 consolidated financial results under IFRS in late October 2012.
For more information:
JSC RusHydro, Investor Relations Department
Tel. +7 (495) 225-3232 ext. 1319, 1394, 1607
DISCLAIMER
The information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of RusHydro. One can identify forward-looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might," the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially from these statements.
We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia and rapid technological and market changes in our industries, as well as many other risks specifically related to RusHydro and its operations.
Related Shares:
HYDR.L