RusHydro announces 1H 2020 IFRS results
August 27, 2020. Moscow, Russia. RusHydro Group (hereinafter referred to as the “Group”, ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces its condensed consolidated interim unaudited financial information prepared in accordance with International Financial Reporting Standards (IFRS) for the 2nd quarter and 1st half of 2020.
Key highlights for 1H of 2020:
Key highlights for 2Q of 2020:
2Q and 1H 2020/2019 highlights (in RUB mn)
Nikolay Shulginov, Chairman of the Management Board – General Director of RusHydro commented: "Thanks to systematic initiatives aimed at increasing the company's value growth, capitalization increased by 33% in the first half of the year. Operational efficiency growth, sustainability of our business model and commissioning of new capacities are the backbones behind our performance.
Strong operational results in the first half of 2020 would not have been possible without effective hydropower resource management and seamless maintenance.
Solid financial results enable RusHydro to continuously improve reliability of electricity supply to consumers and carry out operational and investment program to successfully implement the government's modernization program of thermal power plants under capacity supply agreements".
In the first half of 2020, electricity generation by RusHydro Group amounted to 68,900 GWh (+21.8%), including Boguchanskaya hydropower plant3 – 77,742 GWh (+23.6%).
Main factors affecting operating results in January-June 2020 were:
Detailed review of operational results is available at the Company's official website at:
Key events during the period January-June 2020
Revenue breakdown in 2Q and 1H2020/2019 (in RUB mn)
In the first half of 2020, total revenue of the Group increased by 9.0% to RUB 218,057 mn as compared to RUB 200,134 in the first half of 2019. The change is associated with the following key factors:
Operating expenses in 2Q and 1H2020/2019 (in RUB mn)
Total operating expenses in the first half of 2020 compared to the same period last year increased insignificantly (+1.4%) to RUB 164,613 mn due to the following factors:
The Group's net profit increased by 59.4% to RUB 46,825 mn.
In the first half of 2020, EBITDA increased by 33.3% to a record RUB 67,652 mn compared to the same period of 2019. At the same time, the Far East segment's EBITDA increased by 39% and reached RUB 15.7 bn.
Key indicators of financial position
As of June 30, 2020, the Group's assets increased by RUB 27,919 mn or 3.0% to RUB 953,038 mn against the comparable figure as at December 31, 2019 following increase in property, plant & equipment and working capital .
As at the end of the reporting period, the Group's liabilities decreased by RUB 13,630 mn or 3.8% to RUB 341,614 mn as compared to December 31, 2019 following decrease of non-current debt and accounts payable.
Events after the reporting date
The full financial statements are available on the Company's website at:
1 Operating profit is calculated as the difference between revenue, other operating profit and operating expenses.
2 EBITDA is calculated as operating profit/loss excluding depreciation of property, plant and equipment, amortization of intangible assets, impairment of property, plant and equipment, impairment of financial assets, profit / loss on disposal of property, plant and equipment and other non-cash items of operating income and expenses.
3 The Boguchanskaya hydropower plant is part of the Boguchanskiy Energy and Metals Complex (BEMO), a 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
4 In July 2017, the Resolution of the Russian Government No. 895 "On reaching basic rates (tariffs) for electric power (capacity) in the territories of the Far East Federal region (the "Far East")" became effective, under which rates for consumers in the territories of the Far East should be reduced starting from 1 January 2017 to the basic level of RUB 4.00 / kWh, from 1 January 2018 to RUB 4.30 / kWh, from 1 January 2019 to RUB 4.69 / kWh, from 1 January 2020 to RUB 5 / kWh. According to the Resolution of the Russian Government No. 1614-r of 28 July 2017, PJSC RusHydro was appointed as the recipient of a premium to the price for capacity provided by the Company in the price zones of the wholesale market under CCS agreements. The premium to the price for capacity is set in order to achieve the basic level of rates (tariffs) for electricity (capacity) planned for the next regulation period in the Far East constituent regions. Within the amounts defined by Resolution No. 1615-r of the Russian Government dated 28 July 2017, the Company translates the collected amounts of margin in the form of free-of-charge targeted contributions to the budgets of the respective regions. The Group companies being guaranteeing suppliers will receive compensation for the shortage of income related to the reduction of rates, through subsidies from the Far East constituent regions
5 includes grid company services