Results of the Board of Directors on May 31, 2016
PJSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces that the Company's Board of Directors held a meeting in absentia on May 31, 2016.
The Board of Directors took a note of the report on interim results of 2016 business-plan execution for the 1st quarter of 2016, including reports on implementation of investment program (including comprehensive modernization program) and annual procurement plan for the 1st quarter of 2016.
Electricity generation and output by RusHydro’s power plants in the 1st quarter of 2016 totaled 114.4% and 115.3% of the planned volumes respectively.
In the 1st quarter of 2016, total installed capacity of RusHydro’s hydropower plants increased by 3 MW as a result of rerating of the equipment at the Kamskaya HPP. Kamskaya HPP was the first plant of RusHydro to complete renovation of all hydropower equipment as a part of the comprehensive modernization program. The installed capacity of the plant increased from 483 MW to 552 MW.
Financing of the investment program in the 1st quarter of 2016 amounted to RUB 6.63 bn or 85.8% of funding plan for the quarter and 10.1% of the annual plan. Actual financing of comprehensive modernization program in the 1st quarter of 2016 totaled RUB 4.58 bn or 100% of the plan for the 1st quarter and 13% of the annual plan.
The Board of Directors approved the report on execution of the Company’s KPIs in the 1st quarter of 2016.
The Board of Directors approved the list of projects implemented or planned for implementation in terms of the investment program of RusHydro entitled to technological assessment and price audit in 2016-2017.
The list includes comprehensive modernization of the Volzhskaya, Votkinskaya, Maynskaya and Zhigulevskaya HPPs.
The Board of Directors took a note of the information on status of implementation of four priority projects in the Far East: Yakutskaya TPP-2, 2nd stage of Blagoveshenskaya TPP, TPP in Sovetskaya Gavan’, Sakhalinskaya TPP-2 as of March 31, 2016.
The Board of Directors commissioned Nikolay Shulginov, Chairman of the Management Board – General Director of RusHydro:
1. To choose one of the following MOEX indexes: MICEX, MICEX PWR, SCI, RCI, to use as a target value for Total Shareholders Return (TSR) in the Company’s KPIs starting from January 1, 2016. The indicator should be considered as achieved, in case its actual value exceeds the dynamics of chosen index.
2. To amend the Company’s internal documents accordingly.
The Board of Directors approved the amended charitable and sponsorship activities plan of the Company for 2016 as well as new version of charitable and sponsorship activities policy.
The Board of Directors approved Regulations on the accounting procedure of the investment projects of RusHydro Group.
The Board of Directors commissioned Nikolay Shulginov, Chairman of the Management Board – General Director of RusHydro to approve standards for procurement of goods, works and services that are not subject to further resale. These standards should be applied while planning and running the Company’s business. The standards are subject to annual adjustment.
These measures are aimed at improving efficiency, transparency and optimization of costs of RusHydro’s procurements.
The Board of Directors resolved to consider commission of the Federal Agency for State Property Management to prepare a road map for organization of anti-corruption procedures as accomplished.
The Board of Directors commissioned RusHydro’s representatives at the AGM of JSC BoGES Holding company and JSC BoAZ Holding company to approve loan agreements, qualified as major transactions.
PJSC RusHydro gives to JSC BoGES Holding company non-interest bearing loan in the amount of RUB 2,673,602 and non-interest bearing loan in the amount of RUB 2,073,602 to JSC BoAZ Holding company. The loans are aimed to finance the investment projects of the companies.
The Board of Directors commissioned RusHydro’s representatives at the AGM of JSC BoGES Holding company to approve an agreement, qualified as major transaction.
According to the agreement JSC BoGES Holding company gives to LLC Joint holding company BoGES non-interest bearing loan in the amount of RUB 600,000. The loan is aimed to finance the investment project of the company.
The Board of Directors commissioned RusHydro’s representatives at the AGM of JSC Blagoveschenskaya TPP to approve the agreement for construction and installation works between JSC Blagoveschenskaya TPP and JSC Power Machines.
The Board of Directors commissioned RusHydro’s representatives at the AGM of JSC TPP in Sovetskaya Gavan’ to approve an addendum to the general agreement No. SG TPP – 14/0027 of June 23, 2014, between JSC TPP in Sovetskaya Gavan’ and JSC GlobalElectroService, qualified as major transaction.
The Board of Directors determined the auditor’s remuneration for auditing the Company’s 2016 accounting statements of PJSC RusHydro under RAS and consolidated financial statements of RusHydro Group under IFRS in the amount of RUB 119,999,805 (including VAT in the amount of RUB 18,305,055).
JSC PriceWaterhouse Coopers Audit has won a tender for these services.
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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