RusHydro announces FY2014 RAS results
JSC RusHydro (MOEX, LSE: HYDR; OTCQX: RSHYY) announces its non-consolidated financial results under Russian accounting standards (RAS) for full year ended December 31, 2014.
Key financials for the 4Q and FY 2013/2014 under RAS (in RUB mn)
In 2014, revenue remained flat year-on-year and amounted to RUB 108,478 mn. The underlying factors behind the change in revenue were:
Revenue breakdown (RUB mn)
Operating expenses in 2014 increased by 11% to RUB 65,464 mn as compared to 2013.
Operating expenses breakdown (in RUB mn)
Major factors of change in operating expenses were:
The higher growth rate in operating expenses versus revenue growth in 2014 as compared to the previous year resulted in 14% decline in operating profit as compared to the same period of the previous year.
EBITDA decreased by 9% as compared to the same period of 2013 and amounted to RUB 56,052 mn.
RusHydro's net profit for the reporting period decreased by 13% to RUB 30,729 mn. Net profit adjusted for non-cash items decreased by 20% to RUB 32,876 mn as compared to RUB 40,870 mn in the same period of the previous year.
The difference between the reported and adjusted net profit is attributed mainly to the following non-cash effects:
RusHydro's financial position as of December 31, 2014
The Company's total assets increased by RUB 39,374 mn as of December 31, 2014, or 5% against the similar figure as of December 31, 2013, reaching RUB 855,580 mn.
The growth in assets mainly in terms of long-term financial investments is related to acquisition of shares of RusHydro’s subsidiaries: JSC Zagorskaya PSPP-2 in the amount of RUB 46,144 mn, JSC Zaramagskie HPPs in the amount of RUB 15,312 mn, JSC Ust’-Srednekanskaya HPP in the amount of RUB 8,389 mn, as well as shares of JSC Blagoveschenskaya TPP in the amount of RUB 6,301 mn and JSC Yakutskaya TPP No. 2 in the amount of RUB 5,637 mn and CJSC TPP in Sovetskaya Gavan’ in the amount of RUB 4,374 mn.
As of December 31, 2014, total liabilities stood at RUB 137,050 mn as compared to RUB 191,786 mn as of December 31, 2013. The decrease was attributed primarily to reduction of liabilities to acquirers of the Company’s shares of additional issue after registration of the amendments to the Company’s share capital in the beginning of 2014. The Company's debt portfolio rose by 11% from the beginning of the year to RUB 114,177 mn; long-term loans make up 81% of total debt portfolio.
The Company's equity for January-December 2014 increased by 15% to RUB 718,460 mn against RUB 624,343 mn as of the beginning of the reporting year.
The full financial statements are available on the Company’s website at:http://www.rushydro.ru/investors/reports
The Company plans to publish its consolidated results for the FY 2014 under International financial reporting standards (IFRS) on March 25, 2015.
 Net profit adjusted for the mark-to-market revaluation of listed equity stakes, reserves for financial investment impairment, assets and potentially uncollectible accounts receivable, contingencies This indicator is not reported in the official financial statements under RAS and has been calculated and put into the press release for reference.
 According to the decree of the government of the Russian Federation No. 374 of April 28, 2014, “On amendments to the Regulations of wholesale electricity and capacity market in terms of special aspects of participation of gencos, owners of hydropower plants located in the 2nd pricing zone, in the wholesale market” from May 1, 2014 till December 31, 2015, 35% of capacity of the hydropower plants located in the 2nd pricing zone is sold at the regulated tariffs based on the results of the competitive capacity auctions (KOM). Actual decrease in capacity sale price of KOM is related to decrease in capacity tariff of the Sayano-Shushenskaya HPP in the 2nd half of 2013 from RUB 86,825.85 per MW to RUB 35,955.02 per MW.
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.