RusHydro publishes audited financial statements for year 2009 (in accordance with Russian accounting standards)
Moscow — 30 March 2010 — JSC RusHydro (ticker symbol HYDR; LSE, RTS, MICEX) announces today its audited financial results for 2009 in accordance with the Russian Accounting Standards.
2009 Financial highlights (million roubles):
According to the results for 2009, the revenue from the sale of goods and services increased by 28% to 78,995.8 million roubles, compared to 61,877.2 million roubles in 2008. The main factors behind the revenue growth in 2009 were:
∙ increase in the share of sales at unregulated prices in accordance with the time schedule for liberalization of the wholesale market for electricity and capacity;
∙ year-on-year increase of special investment component included in the tariff for financing construction of the most important hydro-power facilities and technical rehabilitation and modernization programs.
The major part of the Company's revenue is represented by the sales of electricity and capacity:
The cost of goods and services sold (COGS) amounted to 36,704.5 million roubles in 2009, a 4 % decrease compared to 2008.
The main factor behind the drop in COGS was the fall in costs of purchased electricity and capacity for providing for supplies under regulated agreements, driven by:
∙ increase of share of the free electricity and capacity market in line with the liberalization schedule;
∙ decrease in total volume of purchased electricity and capacity due to higher water flow during 2009.
As a result of the increase in revenue and drop in COGS, in 2009 the Company's gross profit rose by 79 % y-o-y and amounted to 42,291.3 million roubles.
The Company's other costs in the reporting period amounted to 56,880.4 million roubles, a 144 % growth compared to 2008. The increase in other costs in 2009 was engendered by the revaluation of financial investments marked to market. As a result of the given operation, the Company booked a non-cash loss in the amount of 21,711.1 million roubles, including 21,683.4 million roubles in respect of JSC OGK-1 shares.
In addition, the Company's other costs in 2009 include losses from the accident at Sayano-Shushenskaya HPP amounted to 4,706.9 million roubles in total, including fixed assets write-off to the amount of 4,124.9 million, which was off-set by insurance compensation under the property insurance contract.
As a result of the accident Sayano-Shushenskaya HPP ceased to generate electricity. For the purpose of fulfilling the obligations under existed agreements the requisite volumes of electric power are being purchased on the day-ahead market and the balancing market. The costs of the electric power purchased for securing the obligations of the Sayano-Shushenskaya HPP in 2009 amounted to 2,613.0 million roubles (1,400.7 million roubles in 2008).
The EBITDA in 2009 rose over 2008 by 62% to reach 50,395.6 million roubles. EBITDA margin** reached 64 % compared to 50 % a year earlier.
Company's net profit in accordance with the Russian Accounting Standards fell by 37% to 10,329.0 million roubles. The main reason for the drop was booking of the non-cash loss as a result of revaluation of financial investment in the shares of JSC OGK-1.
Key indicators of the Company's financial position as of 31.12.2009:
As of 31 December 2009, total assets of JSC RusHydro increased by 34,214.2 million roubles to 475,509.0 million roubles. This 8 % raise compared to 1 January 2009 was primarily driven by:
∙ increase in cash, including received from additional share issues and then deposited on bank accounts, amounted to 30,417.0 million roubles;
∙ increase of net assets value of construction in progress by 7,746.9 million roubles.
The total volume of the Company's liabilities as of 31 December 2009 amounted to 30,346.6 million roubles — a drop of 3 % since the beginning of the reporting period.
Total equity of the JSC RusHydro amounted, as of 31 December 2009, to 445,162.5 million roubles, compared to 410,117.2 million roubles on 1 January 2009.
The 9 % rise was caused by an increase in retained profit and other reserves, as well as in the size of the charter capital as a consequence of additional issues of 10 billion shares (the amendments to the Articles of Association of the Company were registered on 2 April 2009) and 16 billion shares (the amendments to the Articles of Association of the Company were registered on 12 October 2009).
The number of shares registered in the shareholders' register as of 31 December 2009 exceeds the sum of shares in the charter capital of the Company as of 31 December 2009 by 19 billion shares due to additional issue of shares registered on 19 November 2009. The placement of shares will be completed by 21 September 2010 or at the date of placement of the last share of the issue, depending on which of these dates is the earliest. Federal Financial Markets Service also allowed to place on international markets 1.5% of total the share issue program.
Subsequent events (31 December 2009):
∙ 24 February 2010 — restored hydro-unit No. 6, with an installed capacity of 640 MW, was launched at the JSC RusHydro subsidiary Sayano-Shushenskaya HPP.
∙ 9 March 2010 — The Board of Directors of JSC RusHydro considered and approved the Company's investment program for 2010 in the amount of 97.1 billion roubles.
∙ 22 March 2010 — the restored hydro-unit No. 5 at the Sayano-Shushenskaya HPP was connected to the grid under load. The start-up of hydro-unit No. 5 brought the plant's capacity up to 1280 MW (before the accident it was 6400 MW). The operation of the two hydro-units (Nos. 5 and 6) has greatly increased reliability of the electric power supply to the Siberian grid and minimized the high-water passage risks.
JSC RusHydro is Russia's largest hydrogenerating company incorporating 53 facilities using renewable energy. RusHydro's installed capacity is 25.4 GW, including the Sayano-Shushenskaya HPP named after P.S. Neporozhny (6,400 MW) where work is currently under way to eliminate the consequences of the August 17, 2009 accident. On February 24, 2010, hydropower unit No. 6 with a capacity of 640 MW was launched into operation.
RusHydro is the leader in the production of power on the basis of renewable energy sources, developing power generation using water flows, tidal, wind and geothermal energy.
For further information:
* — The EBITDA is calculated as gross profit exclusive of depreciation
** — EBITDA margin is calculated as ratio between Revenue and EBITDA
Shares / ADR