Results of the Board of Directors on June 6, 2016
PJSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces that the Company's Board of Directors held a meeting on June 6, 2016.
The Board of Directors approved the Strategy of RusHydro Group development through 2020 with outlook for 2025.
The strategy is aimed at efficient utilization of hydro resources, fostering conditions for reliable functioning of the Unified energy system of Russia and socio-economic development of the Far Eastern regions via provision of accessible energy infrastructure to existing and future customers.
The strategy incorporates principle of continuity with the Strategic plan of PJSC RusHydro through 2015 with an outlook till 2020 and is aimed at development of strategic and corporate governance.
The strategy reflects main trends of world economy and energy industry development, as well as decisions on timing and volume of investments by RusHydro Group, made earlier.
According to the Strategy, RusHydro is a company with efficient operations, focused on safe operations of its facilities and growth of shareholder value. RusHydro Group seeks to maximize free cash flow for higher financial stability and independence from external funding, optimization of organizational structure for reduction of transaction costs, increase in market capitalization in order to provide for efficient partial privatization, in case of adoption of respective decision by the government.
The following key growth drivers of RusHydro Group value have been identified:
The Board of Directors took a note of the report on execution of Strategic plan of PJSC RusHydro through 2015 with outlook till 2020.
The Board of Directors took a note of the report on execution of the Company’s business-plan for 2015 (including reports on implementation of investment program (including comprehensive modernization program) and annual procurement plan for 2015).
RusHydro’s net profit for 2015 totaled to RUB 30,022 mn, which exceeds the planned amount by RUB 9,340.4 (+45.2%). The Company continues to implement measures aimed at improving operating efficiency and optimization of costs. The most important measures resulted in decrease of expenses were optimization of organizational structure and business processes of the Company. In 2015, operating expenses decreased by 3% or RUB 574 mn, as a result of cost optimization.
Electricity generation and output by RusHydro’s power plants in 2015 totaled 97.6% and 98.1% of the planned volumes respectively. The difference between the planned and actual figures is explained by hydrological conditions.
During 2015, total installed capacity of RusHydro’s hydropower plants increased by 55.5 MW as a result of rerating of equipment, including at the Kamskaya HPP (+6 MW), Novosibirskaya HPP (+5 MW), Zhigulevskaya HPP (+ 21 MW), Volzhskaya HPP (+10.5 MW), and Saratovskaya HPP (+13 MW). Gotsatlinskaya HPP (100 MW) was commissioned upon completion of construction works.
Financing of the investment program in 2015 totaled RUB 56.03 bn or 92% of the funding plan. Actual financing of comprehensive modernization program in 2015 totaled RUB 29.53 bn or 96% of the plan.
The Board of Directors took a note of the report on execution of the Company’s KPIs for the 4th quarter and 2015.
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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