RusHydro Group announces its operating results for the 4Q and FY2015
PJSC RusHydro (ticker symbol: MICEX-RTS, LSE: HYDR; OTCQX: RSHYY) announces operating results for the 4th quarter and full year ended December 31, 2015 of the parent company and the subsidiaries of RusHydro Group reflected in consolidated financial statements.
Installed electric capacity of RusHydro Group, MW
Installed heat capacity of RusHydro Group, Gcal
In the 4th quarter of 2015, total electricity generation by power plants of RusHydro Group amounted to 30,651 GWh, a 13.6% increase as compared to the same period of 2014, total power generation in 2015 amounted to 114,265 GWh (a 0.6% increase as compared to 2014). In the 4th quarter of 2015, hydropower (HPPs) and pumped storage power plants (PSPPs) of RusHydro Group increased electricity generation by 22.8% to 21,532 GWh, in 2015 generation decreased by 2.4% to 82,079 GWh, output by thermal (TPPs) and geothermal plants located in the Far East of Russia in the 4th quarter of 2015 decreased by 3.6% to 9,119 GWh, in 2015 – increased by 9.2% to 32,186 GWh.
Electricity generation by the plants of RusHydro Group, GWh
The underlying factors of the production change in 2015 were:
Center of Russia
In the 1st half of 2015, for the second consecutive year, water level of the Volga river was low. In 2015, two negative factors: low water inflow as well as low water reserves in the reservoirs resulted in water savings. In the 2nd quarter of 2015, increased water inflow allowed to increase water storage in reservoirs of hydropower plants by the beginning of autumn-winter period of 2015-1016.
In the second half of 2015, total water inflow to reservoirs of the Volgo-Kama cascade was 39% higher than long-run average. Total water inflow to reservoirs of the Volgo-Kama cascade in the 4th quarter of 2015 amounted to 46.7 km3 as compared to the average of 36.6 km3, in 2015 – 234.6 km3 which is 8% lower than normal.
Total electricity generation by RusHydro’s hydropower plants of the Volgo-Kama cascade together with Zagorskaya pumped storage plant in the 4th quarter of 2015 amounted to 9,640 GWh, a 23.9% increase as compared to the same period of 2014. In 2015, generation reached 38,029 GWh, which is 0.8% lower than in the previous year.
South of Russia and North Caucasus
Water conditions on the rivers of the South of Russia and North Caucasus in 2015 were close or lower than long-run average. In the 1st quarter of 2015 water inflow to the Chirkeyskoe reservoir was 15% lower than long-run average. In the 2nd quarter of 2015, water inflow on the Sulak river was 10-25% higher than long-run average, water inflow to Dzaudzhikauskaya HPP and Krasnodarskiy reservoir was close to normal.
In the 3rd quarter of 2015, water inflow to reservoirs of HPPs of the North Caucasus was 25-50% lower than normal, to Chirkeyskoe reservoir – close to normal. The plants operated in the regime providing for accumulation of water reserves by the beginning of autumn-winter period. In the 4th quarter of 2015, water inflow to Krasnodarskiy reservoir and Dzaudzhikauskaya HPP was 20-50% lower than normal, to Chirkeyskaya HPP – close to long-run average.
The electricity generation by the hydropower plants of the South of Russia and North Caucasus in the 4th quarter of 2015 decreased by 9.9% to 1,229 GWh, in 2015 – increased by 5.1% to 6,578 GWh.
In the 1st half of 2015, water level in the basin of the Angara-Yenisey cascade was sustainably low, excluding Novosibirskoe reservoir where water inflow was 18% higher than normal. In the 3rd quarter of 2015, unlike the 1st half of the year, water inflow to all reservoirs of Siberia was substantially lower than long-run average.
In 4th quarter of 2015, water inflow to Novosibirskoe and Krasnoyarskoe reservoirs was 20-45% higher than normal, to reservoir of Sayano-Shushenskaya HPP – close to normal. Water inflow to other reservoirs of Siberia was 10-25% lower than long-run average.
The Boguchanskaya hydropower plant in the 4th quarter of 2015 generated 2,881 GWh, 41.4% increase as compared to the same period of the previous year, in 2015, generation amounted to 13,077 GWh as compared to 8,362 GWh generated in the previous year. During spring flood reservoir of the Boguchanskaya hydropower plant was filled to its design level of 208 m above sea level. This reservoir level will allow the plant to reach its full capacity of 2,997 MW and produce 1.46 TWh of electricity per month.
Total electricity generation by RusHydro’s Siberian hydropower plants in the 4th quarter of 2015 increased by 41.7% to 6,563 GWh, in 2015 – by 1.0% to 22,718 GWh.
Due to low water conditions on the basin of the Zeya river, the reservoir was not filled to its normal water level of 315.0 m, which substantially affected output of Zeyskaya and Bureyskaya HPP in the 1st half of 2015.
In September, water inflow to major reservoirs of hydropower plants of the Far East was 40-60% lower than normal, except for Kolymskoe reservoir where water inflow was 1.5x higher than normal. In December, water inflow to Kolymskoe reservoir was twice as high as normal, in 4th quarter of 2015 – the highest in its history.
Total electricity generated by hydro and geothermal power plants of the Far East in the 4th quarter of 2015, increased by 11.9% to 3, 459 GWh; in 2015, the generation decreased by 15.8% to 12 516 GWh.
In the 4th quarter of 2015, generating assets of RAO ES of the East Holding, a subsidiary of RusHydro, produced 9,729 GWh of electricity, a 3.5% decrease as compared to the 4th quarter of 2014. In 2015, generation increased by 9% to 33,970 GWh. Of this total, 76% was generated by JSC Far East Generating Company (DGK), which increased production by 12% in 2015 to 25,833 GWh, mainly due to 19% decrease in electricity output by the Zeyskaya and Bureyskaya hydropower plants, as well as increase in electricity consumption by 1.3% as compared to the previous year. In 2015, electricity generation by companies operating in isolated energy systems of the Far East increased by 1% as compared to the previous year.
In 2015, heat output by thermal plants of RAO ES of the East decreased by 3% to 30,359 ths. GCal as compared to 2014. The decrease is mainly attributed to higher than usual air temperatures.
Heat output by thermal plants of RAO ES of the East, ths. GCal
In the 4th quarter of 2015, electricity generation by the Sevan-Hrazdan cascade of hydropower plants in Armenia decreased by 23.1% to 32 GWh, in 2015, electricity generation decreased by 4.5% to 453 GWh. The power generation by the plants of the cascade is dependent on water inflows of the Hrazdan river and water releases from Sevan lake.
In the 4th quarter of 2015, total electricity output by RusHydro’s four retail companies, operating in Bashkiria, Chuvashia, Ryazan and Krasnoyarsk regions, amounted to 10,272 GWh, a 3.3% decrease as compared to the same period of 2014. Total electricity output by RusHydro’s four retail companies in 2015 amounted to 36,113 GWh, a 3.9% decrease as compared to 2014.
In 2015, ESC RusHydro, a holding company for all electricity retail operations, increased electricity output by 424 GWh (or 31.7%) as compared to 2014, power retail company, operating in Chuvashia, also increased output by 150 GWh (or 4.8%) due to addition of major consumers.
The decrease in electricity output by JSC Krasnoyarskenergosbyt by 588 GWh or 4%, Bashkiria power retail company by 1,338 GWh (-8.6 %) and PJSC Ryazan power retail company by 99 GWh (-3.4%) is attributable to temperature factor, as well as recession in manufacturing industry.
Electricity output by RusHydro Group’s retail companies, GWh
Water inflows forecast
According to the forecast of the Hydrometeorologic Center of Russia, the following dynamics of water inflows to the major reservoirs is expected in the 1st quarter of 2016:
 The Boguchanskaya hydropower plant is part of the Boguchanskiy Energy and Metals Complex (BEMO), a 50/50 joint venture (JV) between RusHydro and UC RUSAL, and is not part of RusHydro Group. According to RusHydro’s shareholding in the JV (50%), the results of the plant are reported in the official financial statements in “Share of results of associates and jointly controlled entities”. Operations of the HPP have been put into the press-release for general reference.
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.