RusHydro Group announces its operating results for the 3Q and 9 months of 2016
October 20, 2016. Moscow, Russia. PJSC RusHydro (ticker symbol: MICEX-RTS, LSE: HYDR; OTCQX: RSHYY) announces operating results for the 3rd quarter and nine months of 2016 of the parent company and the subsidiaries of RusHydro Group reflected in consolidated financial statements.
In the 3rd quarter of 2016, total electricity generation by power plants of RusHydro Group amounted to 31,007 GWh, a 17.3% increase as compared to the same period of 2015, total power generation in the 9 months of 2016 amounted to 94,117 GWh (a 12.6% growth as compared to the same period of 2015). In the 3rd quarter of 2016, hydropower (HPPs) and pumped storage power plants (PSPPs) of RusHydro Group increased electricity generation by 28.4% to 26,009 GWh, in the 9 months of 2016 generation increased by 20.3% to 72,844 GWh, output by thermal (TPPs) and geothermal plants located in the Far East of Russia in the 3rd quarter of 2016 decreased by 19.1% to 4,998 GWh, in the 9 months of 2016 – by 7.8% to 21,273 GWh.
Electricity generation by the plants of RusHydro Group, GWh
The underlying factors of the production change in January-September 2016 were:
Center of Russia
Due to increased water inflow in 2H 2015, water storage in reservoirs of the Volgo-Kama cascade, in the beginning of 2016, amounted to 65.55 km3, which is 18% higher than long-run average and 49% higher than at the beginning of 2015. In the 1st quarter of 2016, water inflow to reservoirs of the Volgo-Kama cascade was 1.3-2.2x higher than long-run average.
In the 2nd quarter of 2016, water inflow to reservoirs located at the Upper Volga was 20-35% lower than long-run average, to Volgogradskoe reservoir – only 25% of norm, to Gorkovskoe, Cheboksarskoe, Kuybyshevskoe and Nizhnekamskoe reservoirs – close to normal, to Kamskoe and Votkinskoe reservoirs – 25-65% higher than long-run average.
Total water inflow to reservoirs of the Volgo-Kama cascade in the 3rd quarter of 2016 amounted to 34.5 km3 as compared to the average of 37.0 km3, in the 9 months of 2016 – 229.4 km3 as compared to the average of 219.3 km3. Special water supply spill for agricultural needs of lower Volga was longer than in previous years and amounted to 127.25 km3 as compared to 65.46 km3 in 2015.
Total electricity generation by RusHydro’s hydropower plants of the Volgo-Kama cascade together with Zagorskaya pumped storage plant in the 3rd quarter of 2016 amounted to 8,446 GWh, a 16.2% decrease as compared to the same period of 2015. In the 9 months of 2016, generation reached 30,930 GWh, which is 9.0% higher than in the same period of the previous year.
South of Russia and North Caucasus
In the 9 months of 2016, water conditions on the rivers of the South of Russia and North Caucasus were close to long-run average. In January-September 2016, water inflow to the Chirkeyskoe reservoir was 5% higher than long-run average.
Hydropower plants of the Dagestan branch of RusHydro successfully went through the peak flood period, which took place in the first decade of June. In July, Kubanskoe reservoir was filled to its normal level of 629 m. By the beginning of September Chirkeyskoe reservoir was also filled up to its normal water level of 355 m. Currently, the Chirkeyskaya HPP operates in normal regime.
The electricity generation by the hydropower plants of the South of Russia and North Caucasus in the 3rd quarter of 2016 increased by 32.0% to 2,667 GWh, in the 9 months of 2016 – by 28.1% to 6,853 GWh.
In January - September 2016, water inflow to the Ob and Yenisei rivers was close to normal. In 2016, the spring flood period in the basin of the Sayano-Shushenskaya HPP started later than usual. In the end of August, reservoir of the Sayano-Shushenskaya HPP was filled to its maximum level of 538.5 m. On September 2, 2016, the plant generated its all-time high daily amount of electricity – 110,306,939 kWh. The record high amount of electricity produced by the Sayano-Shushenskaya HPP is a result of favorable hydrological conditions, as well as modernization of automatic reliability system of the plant made in 2015.
The flood period in the basin of Novosibirskoe reservoir started earlier than usual. There were two peak periods of flooding: in April and July 2016.
The Boguchanskaya hydropower plant in the 9 months of 2016 generated 10,597 GWh, 3.2% increase as compared to the same period of the previous year. DThe reservoir of the Boguchanskaya HPP had been drawn down to 207.0 m. As of the end of September, the reservoir level was 207.5 m.
Total electricity generation by RusHydro’s Siberian hydropower plants in the 3rd quarter of 2016 increased by 112.9% to 9,859 GWh, in the 9 months of 2016 –by 37.3% to 22,179 GWh.
In the 3rd quarter of 2016, after heavy rains water inflow to reservoirs of the Zeyskaya and Kolymskaya HPPs was 1.8x and 1.9x higher than normal (respectively), water inflow to the Far Eastern rivers was 10-74% higher than normal.
In order to provide for safe and uninterrupted operation of hydropower facilities during the flood period, the spare capacity was created in reservoirs to accumulate spring and summer inflows.
In 2016, unlike two previous years, the reservoir of the Zeyskaya HPP was filled over its normal water level of 315 m and limitations of output were removed allowing the plant to reach its annual output of 4.3 TWh.
Total electricity generated by hydro and geothermal power plants of the Far East in the 3rd quarter of 2016, increased by 48.0% to 4,632 GWh. In the 9 months of 2016, generation increased by 25.2% to 11,342 GWh.
In the 3rd quarter of 2016, generating assets of RAO ES East Holding, a subsidiary of RusHydro, produced 5,244 GWh of electricity, 18.3% decrease as compared to the 3rd quarter of 2015, in the 9 months of 2016 generation decreased by 7.4% and amounted to 22,439 GWh. Of this total, 72% was generated by JSC Far East Generating Company (DGK), which decreased production by 9.3% in the 9 months of 2016 to 16,798 GWh, mainly due to 30% increase in electricity output by the Zeyskaya and Bureyskaya hydropower plants. In the 9 months of 2016, electricity generation by companies operating in isolated energy systems of the Far East remained flat year-on-year.
In the 9 months of 2016, heat output by thermal plants of RAO ES East increased by 3.8% to 20,233 ths. GCal as compared to the same period of 2015.
Heat output by thermal plants of RAO ES East, ths. GCal
In the 3rd quarter of 2016, electricity generation by the Sevan-Hrazdan cascade of hydropower plants in Armenia decreased by 2.1% to 159 GWh, in the 9 months of 2016, electricity generation decreased by 11.2% to 375 GWh. 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 3rd quarter of 2016, total electricity output by RusHydro’s four retail companies, operating in Bashkiria, Chuvashia, Ryazan and Krasnoyarsk regions, amounted to 7,354 GWh, a 0.2% decrease as compared to the same period of 2015; in the 9 months of 2016 output amounted to 25,151 GWh (-2.7%).
In the reporting period ESC RusHydro, a holding company for all electricity retail operations, increased electricity output by 476 GWh (+37.7%) as compared to the same period of 2015 due to addition of major consumers.
The decrease in electricity output by JSC Krasnoyarskenergosbyt by 363 GWh or 3.6%, Bashkiria power retail company by 716 GWh (-7%), JSC Chuvash retail company by 13 GW (-0.6%) and PJSC Ryazan retail company by 73 GWh (-3.6%) in the 9 months of 2016 is attributable to recession in manufacturing industry, transfer of a number of major consumers to independent wholesale electricity purchases and abnormally high air temperature in autumn.
Electricity output by RusHydro Group’s retail companies, GWh
Water inflows forecast
According to the forecast of the Hydrometeorological Center of Russia, the following dynamics of water inflows to the major reservoirs is expected in the 4th quarter of 2016:
[i] 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.
[ii] Includes generation by HPPs of JSC RusHydro, Kolymskaya HPP and Viluiskie HPPs, part of RAO ES East Subgroup.
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.