RusHydro announces 1Q 2017 RAS results
April 28, 2017. Moscow, Russia. PJSC RusHydro (MOEX, LSE: HYDR; OTCQX: RSHYY) announces its non-consolidated financial results under Russian accounting standards (RAS) for the 1st quarter of 2017.
Key financials for 1Q 2016/2017 under RAS (in RUB mn)
In the 1st quarter of 2017, revenue increased by 2% to RUB 27,678 mn as compared to RUB 27,093 mn for the same period of 2016. The underlying factors behind the change in revenue were:
Revenue breakdown (RUB mn)
Operating expenses in the 1st quarter of 2017 increased by 5% to RUB 13,212 mn as compared to the same period of 2016.
Operating expenses breakdown (in RUB mn)
Major factors of change in operating expenses were (among the highest constituent expenses):
Operating profit for the period totaled RUB 14,466 mn against 14,484 mn for the same period of previous year.
EBITDA increased by 2% as compared to the same period of 2016 and amounted to RUB 18,609 mn.
RusHydro's net profit for the reporting period decreased by 11% to RUB 13,529 mn. Net profit adjusted for non-cash items decreased by 22% to RUB 11,189 mn as compared to RUB 8,363 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:
RusHydro's financial position as of March 31, 2017
The Company's total assets increased by RUB 55,555 mn as of March 31, 2017, or 6% against the similar figure as of December 31, 2016, reaching RUB 964,228 mn. The increase in assets is explained by a conclusion of a transaction between PJSC RusHydro and VTB Bank (PJSC) to purchase 55 bn shares of RusHydro and a non-deliverable forward contract. The deal was aimed at restructuring the debt portfolio of PJSC RAO ES East Subgroup and its subsidiaries.
As of March 31, 2017, total liabilities increased RUB 42,006 mn or 30% against similar figure as of December 31, 2016 and totaled RUB 181,279 mn.
The Company's debt portfolio decreased by 1% as compared to the beginning of the year from RUB 108,873 mn to RUB 107,873 mn; long-term loans make up 87% of total debt portfolio.
The Company's equity for the 1st quarter of 2017 increased by 2% to RUB 782,887 mn against RUB 769,336 mn as of beginning of the year.
The full financial statements are available on the Company’s website at: http://www.rushydro.ru/investors/reports
The Company plans to publish its consolidated results for the 1st quarter of 2017 under International financial reporting standards (IFRS) on June 7, 2017.
 PJSC RusHydro, the parent company of RusHydro Group, includes 19 branches registered in the Russian Federation, including: branch Bureyskaya GES, branch Volzhskaya GES, branch Votkinskaya GES, Dagestan branch, branch Zhigulevskaya GES, branch Zagorskaya GAES, branch Zeiskaya GES, Kabardino-Balkarsky branch, branch Kamskaya GES, Karachaevo-Cherkessky branch, branch Cascade of Verkhne-Volzhsky GES, branch Cascade of Kuban GES, branch Corporate Energy University, branch Nizhegorodskaya GES, branch Novosibirskaya GES, branch Saratovskaya GES, branch Sayano-Shushenskaya GES named after P.S. Neporozhny, Severo-Osetinsky branch, branch Cheboksarskaya GES.
 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.
 According to decree of the government of the Russian Federation No. 379 of April 30, 2016, all limitations on sale of hydro capacity located in the 2nd price zone at unregulated prices have been lifted. Thus, all volume of hydro capacity in the 2nd price zones less volumes sold under regulated tariffs will be sold at unregulated prices.
The information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of RusHydro. You 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, rapid technological and market change in our industries, as well as many other risks specifically related to RusHydro and its operations.