Results of the Board of Directors on May 29, 2015
JSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces that the Company's Board of Directors held a meeting in absentia on May 29, 2015.
The Board of Directors approved report on 2014 business-plan execution (including reports on implementation of investment program (including comprehensive modernization program) and annual procurement plan for 2014).
Electricity generation by RusHydro’s power plants in the 4th quarter and full year 2014 totaled 81.6% and 89.6% of the planned volumes respectively. Output totaled 81.8% and 90.0% of the planned volumes respectively. Deviation from the plan was driven by hydrological situation in the main river basins and regimes of hydropower plants operation, determined by the Federal Water Resources Agency.
During 2014 installed capacity of the Company’s facilities increased by 56.5 MW due to completion of rehabilitation and modernization works on the Volzhskaya (10.5 MW), Zhigulevskaya (21 MW), Kamskaya (6 MW), Saratovskaya (9 MW) and Verkhnevolzhskie HPP Cascade (10 MW). In addition, 333 MW of capacity was commissioned on the Boguchanskaya HPP. Altogether, including complex modernization program, 389.5 MW of capacity have been added.
Financing of investment program in 2014 amounted to RUB 83.22 bn or 97% of the planned target. Actual financing of rehabilitation and modernization in 2014 amounted to RUB 34.52 bn or 95% of the annual plan of RUB 36.38 bn.
The Board of Directors approved the report on implementation of innovative development program of RusHydro for 2011-2015 with the outlook for 2021 in 2014.
Overall financing of the program during the period totaled RUB 3,890.5 mn. In 2014, 22 projects were selected for implementation, 10 agreements for R&D works in total amount of RUB 381.64 mn were signed.
Total financing of development of educational programs amounted to RUB 95 mn.
As Chairman of Global Sustainability Electricity Partnership (GSEP) RusHydro arranged round table discussions on sustainable development of hydropower in Irkutsk and Moscow.
The Board of Directors approved additional contribution of funds to share capital of “VolgaHydro” LLC, qualified as an interrelated interested party transaction, and determined the price (monetary value) of contributed funds in the amount of up to RUB 487,700,000.
These funds will be used to finance further implementation of project in 2015. RusHydro’s share in the share capital of “VolgaHydro” LLC remains unchanged and amounts to 40%.
The Board of Directors approved the following agreements, qualified as interested party transactions:
In the 2nd quarter of 2014, Voith Hydro made the amendments to the general arrangement of the enterprise, which moved the terms of delivery of the equipment and construction of the enterprise. The delivery of major part of the equipment is scheduled for 2015.
In 2015, VolgaHydro” LLC plans to supply the technological equipment, construct the buildings of the enterprise and start installation of technological equipment.
The Board of Directors of RusHydro approved construction of enterprise aimed at manufacturing hydroturbine equipment, established together with Voith Hydro GmbH & Co. KG. In terms of this project a joint venture “VolgaHydro” LLC had been created. On June 19, 2013, the Company’s Board of Directors approved participation of RusHydro in the joint venture located in Russia.
The Board of Directors approved the agreements on compensation payments in 2015 related to changes of water usage conditions, qualified as transactions associated with gratuitous transfer of RusHydro’s property.
Starting from 1978 people, who live on the territories that had been flooded to build hydropower plants in Dagestan, get water and electricity supply benefits on annual basis.
The Board of Directors approved the contractor agreements between RusHydro and Institute Hydroproject, qualified as interested party transactions, for development of:
These works are included in operational program of RusHydro and are aimed at reliability and safety improvement of facilities of the Zagorskaya PSPP.
The Board of Directors approved the paid service contract between RusHydro and the Russian Union of Industrialists and Entrepreneurs (RSPP), qualified as interested party transaction.
The agreement provides for preparing the expert report on results of review of corporate sustainability report of RusHydro Group for 2014.
The Board of Directors took a note and approved changes in organizational structure of RusHydro.
The changes in organizational structure are related to appointment of Sergey Kirov to a position of a member of the Company’s Management Board, First Deputy General Director. The increase in the number of the Management Board members is aimed to enhance the financial and economic unit of RusHydro in the current unfavorable economic conditions.
The Board of Directors approved the report on execution of the Company’s KPIs in the 1st quarter of 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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