Results of the Board of Directors on March 29, 2013
JSC RusHydro (ticker symbol: MICEX-RTS, LSE: HYDR; OTCQX: RSHYY) announces that the Company's Board of Directors held a meeting in absentia on March 29, 2013.
The Board of Directors approved the report on 2012 business-plan execution (including report on implementation of investment program, comprising report on implementation of generating facilities modernization program in 2012).
Electricity generation and output by RusHydro’s power plants for the 2012 totaled 105.2% and 105.9% of the planned volumes respectively. The slight overshoot was a result of favorable hydrological conditions and regimes allowed by the Federal Water Resources Agency.
In 2012, as a part of RusHydro`s investment program implementation a number of construction works were completed, including:
Technical upgrade and reconstruction works and capacity installation at the Volzhskaya HPP (15.5 MW), the Kamskaya HPP (9 MW) and the Kabardino-Balkaria branch (2 MW) were also completed.
In 2012, three new hydropower units (1,920 MW) at the Sayano-Shushenskaya HPP and three hydropower units at the Baksanskaya HPP (25 MW) were also commissioned.
Financing of investment program in 2012 including projects of comprehensive modernization program for 2012-2025 amounted to RUR 97.07 bn or 99% of financing plan.
Actual financing of technical rehabilitation and modernization projects totaled RUR 33.12 bn or 127% of the annual plan of RUR 26.13 bn. The increase of financing was due to the additional reconstruction of hydro turbines at the Volzhskaya HPP, the Zhigulevskaya HPP, the Kamskaya HPP and other HPPs.
The Board of Directors approved RusHydro`s business-plan for 2013, including the investment program, quarterly and yearly KPIs and quarterly financing plans for 2013. Furthermore, the Company’s Board of Directors approved the Company’s business plan for 2014-2017, including the investment program for 2014-2017.
Technical upgrade and reconstruction of the Volzhskaya, Zhigulevskaya, Kamskaya, Novosibirskaya and Saratovskaya HPPs, as well as new capacities installation (the Boguchanskaya HPP, the Ust-Srednekanskaya HPP and the Zagorskaya pumped storage plant No. 2) will result in increase of installed capacity by 1,710 MW in 2013. The Company also plans to increase its’ installed capacity by 1,255.27 MW in 2014-2017 through technical upgrade and reconstruction of power plants in Dagestan and North Ossetia, the cascades of Verhnevolzhskie and Kubanskie HPPs, the Volzhskaya, Zhigulevskaya, Kamskaya, Novosibirskaya, Saratovskaya and other HPPs and also through completion of construction of new generation facilities (the Ust-Srednekanskaya HPP, the Zagorskaya pumped storage plant No. 2, the Lower Bureya HPP and a number of small hydropower plants in the North Caucasus).
The planned amount of capital expenditures for 2013 according to the approved investment program totals RUR 102.86 bn.
The Board of Directors approved the report on execution of the Company’s KPIs in the fourth quarter and full year 2012.
The Board of Directors commissioned RusHydro’s representatives in management bodies of Pavlodolskaya HPP to approve an agreement on sale of property, qualified as a major transaction.
The property of the Pavlodolskaya HPP (currently wholly-owned by RusHydro) will be included in the North Ossetian branch of the Company. This will result in HPP efficiency improvement and its reconciliation to RusHydro’s technical standards. These measures are aimed to optimize the Group structure and create a single management body in the North Ossetian region, which will allow to reduce administrative costs and increase economic efficiency of operating facilities.
The Pavlodolskaya HPP is located on the Terek river, upstream from Mozdok. The HPP was put into operation in 1965. The capacity of the HPP is 2.62 MW. The average annual output is 12.08 mn kWh per annum.
The Board of Directors approved the report on activities of the Company’s Management Board in 2012.
The Board of Directors approved the report on implementation of program of comprehensive development of infrastructure of Cheremushki settlement in 2010-2014 (that suffered from the consequences of the Sayano-Shushenskaya accident).
Total financing of the program in 2012 exceeded RUR 194 mn.
The Board of Directors approved the report on insurance protection of RusHydro in 2012.
Insurance costs in 2012 totaled RUR 909,608 ths, which is 2.8% less than the planned amount.
The Board of Directors approved RusHydro`s Social Policy and its development plan.
Being a socially responsible company, RusHydro is committed to creating social environment for orphans.
The Board of Directors noted the activity concept of the Fund for scientific and technical development. The Board of Directors also instructed the Company’s Management Board to develop and submit the Fund’s investment declaration and regulations through May 31, 2013.
Creation of such Fund’s is aimed at improvement of the investments in the scientific and technical projects, technology transfer projects and creation of infrastructure for scientific, technical and innovative development.
The Board of Directors approved the report on implementation of the Company’s charitable and sponsor activities program in 2012.
In 2012, RusHydro continued implementation of a long-term comprehensive charitable program "The Sail of Hope", including core charitable projects of the Company.
In 2012, the Company launched the "Born by Energy" project aimed to provide maternity clinics with expensive diagnostic and rehabilitation equipment. Last year, the project was implemented in six branches.
In 2012, RusHydro participated in financing of the ‘Alania’ football club. The project includes financing of current FC activities and development of football schools for children in the North Caucasus region.
During the past few years, one of RusHydro’s priority projects was cooperation with the Russian Geographical Society. In 2012, the Company financed the formation of a grant funding for research expeditions and the publication of the cartographic encyclopedia of Russia, etc.
Overall amount of funds spent on charity and sponsorship in 2012 was more than RUR 1 bn.
The Board of Directors also approved RusHydro’s charitable and sponsor activities plan for 2013. The Company will continue to support orphanages and boarding schools, educational programs, sports activities, including ‘Alania’ football club, and implement "The Sail of Hope" program.
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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