RusHydro Group announces its operating results for the 1Q 2018
April 20, 2018. Moscow, Russia. PJSC RusHydro (ticker symbol: MICEX-RTS, LSE: HYDR; OTCQX: RSHYY) announces operating results for the 1st quarter of 2018, of the parent company and subsidiaries of RusHydro Group reflected in consolidated financial statements.
Electricity generation by the plants of RusHydro Group, GWh
The underlying factors of the production change in January-March 2018 were:
Center of Russia
In the beginning of 2018 water supply in the hydropower plants of the cascade was higher as compared to the long-run average and to last year by 35% and 51% respectively. The available capacity of the reservoirs of the Volga-Kama cascade was 75.1 km3 as compared to the long-run average of 58.3 km3.
In the first quarter of 2018 water inflow to most of the reservoirs on Volga and Kama was higher than normal by 1.2-2.5x times. Total water inflow to the reservoirs of the Volga-Kama cascade reached 38.7 km3 (normal level - 21.3 km3).
In the second quarter of 2018, water inflow is expected to be lower than the normal level to the following reservoirs: Ivankovskoe, Uglichskoe and Rybinskoe – by 15%, Nizhnekamskoe – by 35%. Water inflow to all other reservoirs is expected to be close to the normal level.
Total electricity production by the hydropower plants of the Volga-Kama cascade and Zagorsksaya pumped storage in the first quarter 2018 reached 10,957 GWh, an increase of 25.5% over the corresponding period last year.
South of Russia and North Caucasus
According to the Hydrometeorology Center of Russia, in the first quarter of 2018 hydropower plants in the North Caucasus were operating with water supply 10% higher than the long-run average. The same situation is expected in the second quarter of the year.
Pre-flooding reservoir draw-down is currently in effect at the main hydropower plants of the North Caucasus (Chirkeyskaya and Irganayskaya HPPs)
Total electricity production by the hydropower plants in the South of Russia and North Caucasus decreased by 5.2% to 1,141 GWh as compared to the corresponding period last year due to lower factual water inflow than in 2017.
Water inflow to the reservoirs on the rivers of Siberia in the first quarter of 2018 was higher than normal level: inflow to Sayano-Shushenskoe reservoir and Novosibirskaya HPP was higher by 20% and 15%, respectively.
Overall electricity production by the hydropower plants in Siberia decreased by 3.4% to 5,594 GWh on the back of lower water inflows as compared to the first quarter of last year. The Boguchanskaya HPP produced 2,803 GWh in the first quarter of 2018, a decrease of 11.7% over the corresponding period last year.
Given hydrological conditions of the autumn-winter period of 2017/2018 and decreased water reserves in Zeyskoe reservoir in the beginning of the year as compared to long-run average, the Far East hydropower plants were operating according to the regimes to provide necessary draw-down of reservoirs to pre-flood levels and ensure reliable and safe operation of the facilities as well as accumulation of inflows during the 2018 flood period. Water inflow to Zeyskoe reservoir in the first quarter was 20% higher than the long-run average and to Kolymskaya HPP - 35% above the long-run average.
Total electricity generated by hydro and geothermal power plants in the Far East (not included in the RAO ES East subgroup) in the first quarter of 2018 decreased by 11% to 3,625 GWh against the same period last year.
Total electricity generated by RAO ES East subgroup in the first quarter of 2018 amounted to 10,454 GWh, an increase of 12.5% compared to the first quarter last year. JSC Far Eastern Generating Company’s (DGK) share of electricity generated was 75% or 7,822 GWh, an increase of 14% as compared to the same period last year.
Electricity production by vertically-integrated power companies in isolated zones of the Far East increased by 8.5% in first quarter of 2018 against the corresponding period of 2017.
The main drivers behind the increase was an overall consumption growth aided by increase in electricity sales to China and UES of Siberia by 25% from 503 GWh to 630 GWh.
Energy consumption in the Unified Power System of the East in the first quarter of 2018 increased by 5.8% over the same period last year, while overall energy consumption in the Far East (including isolated power systems) increased by 6.4% according to System Operator of the United Power System.
Heat output by thermal plants of RAO ES East Subgroup in the first quarter of 2018 increased by 7.7% and reached 13,039 GCal as compared to the corresponding period of 2017 due to lower air temperatures in all the regions of the Far East with an exception of Chukotka Autonomous Okrug.
Heat output by thermal plants of RAO ES of the East Subgroup, ‘000 GCal
Electricity generation by the Sevan-Hrazdan cascade of hydropower plants in Armenia in the first quarter of 2018 increased by 65.1% to 63 GWh. The power generation by the plants of the cascade is dependent on water inflows of the Hrazdan river and water discharge from Sevan Lake.
Total electricity output by RusHydro's retail companies – Krasnoyarskenergosbyt, Chuvash retail company, Ryazan retail company and ESC RusHydro – in the first quarter of 2018 amounted to 6,025 GWh, an increase of 1.3% against the same period of 2017.
The increase in output was driven by increase in net output by Krasnoyarskenergosbyt as result of temperature factor, growth of customer base and increase in purchased electricity to compensate for the losses of grid operators in the first quarter of 2018 against first quarter of 2017 as result of overall increase of energy consumption.
Increase in electricity output of JSC Chuvash retail company is driven by climate factor for the most part as air temperature in March 2018 was lower than in March 2017, which resulted in increased energy consumption.
Electricity output by RusHydro Group’s retail companies, GWh
Water inflows forecast
According to the forecast of the Hydrometeorology Center of Russia, the following dynamics of water inflows to the major reservoirs is expected in the 2nd quarter of 2018:
 The Boguchanskaya hydropower plant is part of the Boguchanskiy Energy and Metals Complex (BEMO), a 50/50 joint venture (JV) between RusHydro and UC RUSAL, and is not part of RusHydro Group. According to RusHydro’s shareholding in the JV (50%), the results of the plant are reported in the official financial statements in “Share of results of associates and jointly controlled entities”. Operations of the HPP have been put into the press-release for general reference.
 Includes generation by HPPs of JSC RusHydro, Kolymskaya HPP and Viluiskie HPPs (RAO ES East Subgroup).
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