JSC Rushydro's net profit for 6m 2010 increased 13% in accordance with Russian Accounting Standarts
July 30th, 2010 — Today, JSC RusHydro (ticker symbol - LSE, RTS,
MICEX: HYDR) announced its unaudited financial results for the first six months
*EBITDA is calculated as gross profit excluding depreciation
According to results for the first six months of 2010, JSC RusHydro’s revenues increased 7.3%, reaching RUR 42,003.3 million — compared with RUR 39,150.4 million for the first six months of 2009. The driving factors behind the revenue growth include:
∙ an increase in the share of sales at unregulated prices in accordance with the schedule for wholesale electricity and capacity market liberalization;
∙ the growth in electricity prices on the free market (day-ahead-market);
∙ increased sales of electricity produced at the Zeyskaya HPP and the Bureyskaya HPP, including volumes produced above the balance sheet established by the FTS (the Federal Tariff Service);
∙ the growth in electricity sales on the balancing market (which balances supply and demand in real time, where prices are generally higher).
The majority of JSC RusHydro’s total revenues is represented by electricity and capacity sales:
The cost of goods, products, work and services sold for the first six months of 2010 totaled RUR 19,046.7 million, which represents a 10.6% increase compared to the first six months of 2009.
The main factor explaining the cost increase was higher volumes of electricity and capacity purchases on the free market to fulfill obligations under regulated agreements due to the accident at the Sayano-Shushenskaya HPP, specifically:
∙ an increase in costs to purchase electricity from RUR 2,230.7 million to RUR 3,808.0 million —a 70.7% increase, compared to the first six months of 2009;
∙ a RUR 167.7 million increase in costs for purchasing capacity, compared to the first six months of 2009.
JSC RusHydro’s gross profits for the reporting period increased 4.7%, compared to the first six months of 2009 and reached RUR 22,956.6 million.
JSC RusHydro’s other income for the reporting period reached RUR 49,148.8 million, compared to RUR 17,791.9 million for the same period of the previous year. The main factors behind the increase in other income included: actions aimed at the novation of the debt on promissory notes of JSC RusHydro’s subsidiaries and associates. This novation also influenced the item "Other income" that caused other income to grow from RUR 16,138.2 million for the first six months of 2009 to RUR 45,711.1 million for the first six months of 2010.
The Company’s EBITDA equaled RUR 26,970.3 million - a 3.6% increase, compared to the first six months of 2009.
JSC RusHydro’s net profit, in accordance with Russian Accounting Standards, increased 13% and reached RUR 20,728.9 million.
Key indicators of the Company’s financial position, as of June 30th, 2010
As of June 30th, 2010, JSC RusHydro’s total assets increased by RUR 24,530.4 million (or by 5.2%), compared to the same indicator as of January 1st, 2010, and amounted to RUR 500,039.5 million.
The increase in assets was primarily driven by:
∙ growth in accounts receivable, payments on which are expected 12 months after the reporting date, by RUR 29,637.0 million, as a result of restructuring the debt of the promissory notes of subsidiaries and associates;
∙ an increase in the value of long-term financial investments by RUR 3,993.5 million, compared to the same indicator as of the beginning of the reporting period, due to the acquisition of shares of subsidiaries ad associates.
As of June 30th, 2010, the Company’s total liabilities equaled RUR 34,196.8 million, which is a 12.7 % increase, compared to the beginning of the reporting period.
The increase was principally the result of the occurrence of obligations before the Company’s shareholders within the framework of the additional issue of ordinary shares prior to making amendments to the Company’s Articles of Association, in the amount of RUR 4,603.0 million.
As of June 30th, 2010, JSC RusHydro’s total equity stood at RUR 465,842.7 million, compared to RUR 445,162.5 million as of January 1st, 2010. The 4.6% growth in this indicator was primarily caused by a RUR 20,179.8 million increase in retained profits.