Results of the Board of Directors on November 9, 2012
JSC RusHydro (ticker symbol: MICEX-RTS, LSE: HYDR; OTCQX: RSHYY) announces that the Company's Board of Directors held a meeting in absentia today, November 9, 2012.
The Board of Directors approved the establishment of a unified O&M (operations and maintenance) company through reorganization of RusHydro’s subsidiaries – JSC «Turboremont-VKK», JSC «Elektroremont-VKK», JSC «REMIK», JSC «SSHPR» – and their merger with another 100% subsidiary JSC «Hydroremont-VKK».
The establishment of RusHydro’s single O&M company is aimed at strengthening of engineering competency within RusHydro group, O&M cost optimization and improvement of personnel technical skills as RusHydro pursues its ambitious comprehensive modernization program. The implementation of this program requires the improvement of resource base, management system, RusHydro’s and contracting organizations’ expertise that provides for necessity of setting up a joint center of engineering assets control.
The management estimates that the establishment of a unified engineering company will allow saving ca. RUR 700 mn in O&M costs per year.
The comprehensive modernization program was developed in accordance with RusHydro's strategic plan after detailed inspection and reliability assessment of hydrotechnical facilities, equipment and buildings. The program provides for replacement of ca. 50% of turbines, 40% of generators, 60% of transformers, plants auxiliaries and power circuit-breakers for the company’s hydropower fleet. This modernization will result in significant reliability, efficiency and security improvement of RusHydro generating facilities, increase in installed capacity of ca. 1 GW and sustainable growth of electricity generation by 2025.
The Board of Directors made the amendments and additions to the list of non-core assets of RusHydro approved by the Board on February 29, 2012.
These amendments aim to update the data after adjustment of the list of assets.
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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