Results of the Board of Directors on August 30, 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 August 30, 2013.
The Board of Directors approved addendum to the agreement between RusHydro and Iberdrola Ingeniería y Construcción, S.A.U., qualified as interested party transaction, denominated in foreign currency.
The addendum provides for additional services in relation to comprehensive reconstruction of 500 kW outdoor switchgear at the Company’s Votkinskaya HPP. Replacement of the equipment will significantly increase reliability of the plant.
The agreement between RusHydro and Iberdrola Ingeniería y Construcción, S.A.U. provides for comprehensive reconstruction of the 500 kW outdoor switchgear at the Votkinskaya HPP and replacement of old parts with new up-to-date equipment, which will significantly increase reliability of the plant. The reconstruction of the switchgear at the Votkinskaya HPP is included in RusHydro's Investment Program.
The Board of Directors approved loan agreement between RusHydro, RUSAL and CJSC Boguchansky aluminum plant, qualified as transaction incurring liabilities in foreign currency.
According to the agreement RusHydro and RUSAL can provide financing to CJSC Boguchansky aluminum plant to ensure payments under the loan agreement between CJSC Boguchansky aluminum plant and Vnesheconombank from December 3, 2010. This agreement is needed as a guarantee to receive financing from the increased loan limit between Vnesheconombank and CJSC Boguchansky aluminum plant for the construction of the Boguchansky aluminum smelter.
The loan facility amounts to RUR 16.8 bn and is equally allocated to RusHydro and RUSAL. The loan is paid in RUR.
The terms of the agreement are from January 1, 2015 to December 20, 2027 with the repayment date no later than December 21, 2027.
The Board of Directors approved the voluntary group health and accident insurance agreement between RusHydro and SK Alliance, qualified as an interested party transaction, and determined the price of the agreement.
The Board of Directors approved purchase of shares of Zagorskaya pumped storage plant No. 2 and commissioned its representatives in the management bodies of JSC Zagorskaya pumped storage plant No. 2 to vote for the decisions related to additional share issue. RusHydro’s share in share capital of the company will remain unchanged and amount to 100%.
According to the Board’s decision JSC Zagorskaya pumped storage plant No. 2 should transfer to RusHydro up to 109,264,000 of its ordinary shares of additional issue with par value of RUR 1 per share. RusHydro will pay for these shares by contribution of upper spillway dam of the plant to share capital of JSC Zagorskaya pumped storage plant No. 2.
The Board of Directors approved the report on implementation of priority projects within innovative development Program and cooperation with scientific and educational institutions for the first half of 2013.
The total financing of RusHydro’s innovation development projects in the first half of 2013 exceeded RUR 900 mn, including financing of R&D projects in the amount of RUR 151.5 mn.
The Board of Directors approved the inclusion of the assistance program to people suffered from flood in the Far East of Russia to the charitable and sponsor activities plan of RusHydro for 2013.
RusHydro will allocate RUR 200 mn to implement its assistance program, which includes financial assistance to citizens and restoration of infrastructure of the region.
The Board of Directors approved the report on execution of the Company’s KPIs in the second quarter of 2013.
The Board of Directors approved the report on interim results of 2013 business-plan execution in the first half of 2013 (including report on implementation of investment program, comprising report on implementation of generating facilities modernization program).
Electricity generation by RusHydro’s power plants in the 2nd quarter and 1st half of 2013 totaled 115.4% and 118.2% of the planned volumes respectively. Electricity output totaled 116% and 119% of the planned volumes respectively. The slight overshoot was a result of favorable hydrological conditions and regimes allowed by the Federal Water Resources Agency.
The financing of investment program in the first half of 2013 amounted to RUR 27.96 bn (including VAT) or 101% of the plan for the period.
Financing of rehabilitation and modernization projects in the first half of 2013 amounted to RUR 11.27 bn or 123% of the plan for the period. The overshoot was due to early delivery of the equipment and completion of works.
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.
Shares / ADR