RusHydro Group Reports 9.8% IFRS Net Profit Growth for the 6 Months Ended 30 June 2010
RusHydro Group (ticker symbol: LSE, RTS, MICEX: HYDR OTCQX: RSHYY) announces its unaudited interim financial results for the six months ended June 30th, 2010, prepared in accordance with IFRS.
Financial Highlights for 6 months ended 30 June 2010 (RUR mln)
In the first half of the year 2010 RusHydro Group acquired retailing companies from OJSC RAO Energy System of East Group and OJSC Lenenergo. These retailing companies were accounted for using predecessor values method and retrospectively presented in all periods reported.
The Group's revenue for the six months ended 30 June 2010 has increased by 21.4% and totaled RUR 204,978 mln in comparison with RUR 168,835 mln for the six months ended 30 June 2009.
The main factors of revenue growth for the six months ended 30 June 2010 were:
The largest share of the Group's revenue is represented by revenue from sales of electricity and capacity:
Other revenue includes revenue earned from rendering of construction, repairs and other services.
The operating expenses for the six months ended 30 June 2010 totaled RUR 175,727 mln, a 21.8% increase in comparison with RUR 144,321 mln for the same period last year.
The increase in operating expenses was caused by:
RusHydro Group's operating profit for the reporting period was RUR 29,251 mln, compared with RUR 24,514 mln for the same period in 2009.
EBITDA for the first half of 2010 increased by 12.9% year-on-year and totaled RUR 34,851 mln. EBITDA margin stood at 17.0%, compared with 18.3% for the same period last year.
The Group's net profit, in accordance with IFRS, for the first six months of 2010 totaled RUR 21,462 mln against RUR 19,549 for the same period last year.
Key indicators of the Group financial position as of 30 June 2010
As of June 30th, 2010, the Group's assets increased by RUR 17,368 mln to RUR 524,234 mln - a 3.4% increase compared with December 31st, 2009. The increase was primarily driven by:
The Group's equity totaled RUR 420,345 mln and RUR 405,800 mln as of June 30th, 2010 and December 31st, 2009, respectively. The 3.6% growth was due to net profit generated during the reporting period.
As of June 30th, 2010, the Group's total liabilities were RUR 103,889 mln, or 2.8% higher than as at December 31st, 2009.
The Consolidated Financial Statements for the 6 Months Ended 30 June 2010 are available at Company's web-site: http://www.eng.rushydro.ru/investors/reports/finreports/iasfinrep
Management of the Group will hold a conference call on the results on 23rd November, 2010, at 5.00 pm (Moscow time). The presentation for the conference-call will be available on Group's website: http://www.eng.rushydro.ru/ starting from 4 p.m. (Moscow time).
Dial in Details
Please dial in 10-15 minutes prior to the scheduled time of the conference call.
Russia Toll Free: 7-495-580-9543
UK Access Number: 44-207-153-2027
UK Toll Free: 0800-358-0886
US Access Number: 1-480-629-9726
US Toll Free: 1-877-941-2930
Conference ID: 4386292#
A replay of this call will be available until December 7th, 2010.
Access Code 4386292#
UK +44 207 959 6720
 EBITDA determined as operating profit before depreciation
 The following companies were acquired from JSC RAO Energy System of East Group and JSC Lenenergo for cash considerations of RUR 7,832 mln and RUR 468 mln respectively ( RUR 7,995 mln was paid during the first half of 2010): JSC Mosenergosbyt, JSC Saint-Petersburg Sale Company, JSC Altayenergosbyt, JSC Tambov Energy Retailing Company, JSC Saratovenergo and JSC United Energy Retailing Company.
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.
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