RusHydro Group announces its operating results for the 1Q 2019
April 18, 2019. Moscow, Russia. PJSC RusHydro (ticker symbol: MICEX-RTS, LSE: HYDR; OTCQX: RSHYY) announces operating results for the 1st quarter of 2019, 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
Hydropower plants of the Volga-Kama cascade are operating under the winter period regime of pre-flooding reservoir drawdown. The water reserves of the cascade’s reservoirs are higher by 17% and by 28% as compared to the normal level and last year, respectively. Reservoir drawdown is expected to be higher as compared to the normal level and last year. Increase of unregulated side inflows are projected in third decade of April. Flood control committees were established at HPPs to ensure the hydro facilities and equipment’s readiness to pass the flooding season. Currently no safety risks are projected.
In the first quarter of 2018 water inflow to most of the reservoirs on Volga and Kama was close to the normal level. Total water inflow to the reservoirs of the Volga-Kama cascade reached 24.9 km3 (normal level - 21.3 km3).
Total electricity production by the hydropower plants of the Volga-Kama cascade and Zagorsksaya pumped storage in the first quarter of 2019 reached 8,180 GWh.
South of Russia and North Caucasus
According to the Hydrometeorology Center of Russia, in the first quarter of 2019 the snow accumulation in the mountains of the North Caucasus is above the normal level. The water inflow from the mountains will reach the hydro system in the end of May – beginning of June. The high water period will last until the end of August.
Water inflow to the reservoir of Chirkeyskaya HPP in 1Q 2019 was 20% above the normal level. Average daily water inflow to the reservoir of Chirkeyskaya HPP in the months of January and February 2019 was 75.7 m3. The HPP is operating under water economy regime to preserve high water level in the reservoir as water reserves in the snow deposits of the Sulak River are below the normal level.
Total electricity production by the hydropower plants in the South of Russia and North Caucasus decreased by 2.6% to 1,169 GWh as compared to the corresponding period last year.
Water inflow to the reservoirs on the rivers of Siberia in the first quarter of 2019 was higher than normal level by 15%.
Overall electricity production by the hydropower plants in Siberia increased by 0.9% to 5,642 GWh as compared to the first quarter of last year. The Boguchanskaya HPP produced 3,741 GWh in the first quarter of 2019, an increase of 33.5% over the corresponding period last year.
The spring flooding season in the Far East is expected at the end of April – beginning of May.
In the first quarter of 2019, water inflow to Kolymskoye and Zeyskoye reservoirs was 25-40% above the normal level. Water inflow to the cross section of Bureyskaya HPP decreased following a landslide that occurred in December of 2018. The situation has been restored in February 2019 once an outlet was formed. Since then 1.16 km3 of water has entered the dam storage. In the first wuarter of 2019, the facility was operating under normal conditions, in the pre-flooding reservoir drawdown regime.
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 2019 decreased by 9.5% to 3,281 GWh against the same period last year.
Total electricity generated by RAO ES East subgroup in the first quarter of 2019 amounted to 10,627 GWh, an increase of 1.6% as compared to the first quarter last year. JSC Far Eastern Generating Company’s (DGK) share of electricity generated was 74% or 7,847 GWh, an increase of 0.3% against the same period last year.
The main driver behind the increase was a decrease in production by HPPs operating in United Power System of the East. Energy consumption in the Unified Power System of the East in the first quarter of 2019 decreased by 0.3% over the same period last year. Electricity sales to China decreased by 32.9% to 370.2 GWh, while sales to UES of Siberia increased by 40.7% to 159.5 GWh.
Heat output by thermal plants of RAO ES East Subgroup in the first quarter of 2019 decreased by 6.7% to 12,172 GCal as compared to the corresponding period of 2018 due to higher air temperatures in all the regions of the Far East with an exception of Kamchatka Krai, Magadan region and 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 2019 decreased by 24.9% to 48 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 Group’s energy retail companies in 1Q 2019 decreased by 3.3% to 14,779 GWh as compared to 1Q 2018. Decrease came on the back of climate factor as the average temperature in the first quarter of 2019 was higher than in the first quarter of 2018.
In the first quarter of 2019, total electricity output by RusHydro’s retail companies, operating in Chuvashia, Ryazan and Krasnoyarsk regions, amounted to 5,588 GWh.
Electricity output by PJSC DEK (energy retail company operating in the Primorskiy Krai, Khabarovskiy Krai, Amur region and Jewish Autonomous region, the main supplier of electricity to the population in the second non-price zone of the wholesale energy market) in the first quarter of 2019 amounted to 6,416 GWh. The decrease in performance in 2018 is primarily driven by abnormally warm weather conditions in 1Q 2019.
Total electricity output by RusHydro’s companies located in the isolated energy systems in the Far East Federal District amounted to 2,775 GWh in 1Q 2019, an increase of 4.9% as compared to the same period last year.
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 2019:
[i] ATS (Trading System Administrator) spot prices.
[ii] 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.
[iii] Includes generation by HPPs of JSC RusHydro, Kolymskaya HPP and Viluiskie HPPs (RAO ES East Subgroup).
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 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.
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