Results of the Board of Directors on December 23, 2016
December 23, 2016. Moscow, Russia. PJSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces that the Company's Board of Directors held a meeting on December 23, 2016.
The Board of Directors approved RusHydro’s business plan for 2017 incorporating Cost optimization plan based on independent external audit of the Company and subsidiaries’ costs.
The Board of Directors approved RusHydro’s investment program for 2017 and planned investment projects of PJSC RusHydro and new construction projects of subsidiaries. The Board of Directors reviewed Company’s business plan including investment program for 2018-2021.
RusHydro’s 2017-2021 investment program provides for financing of RUB 167,362.06 mn and commissioning 695.48 MW of new electrical and 687.80 GCal*h of heating capacity. Construction of priority projects in the Far East (Yakutskaya TPP-2 (first phase), CHP in Sovetskaya Gavan’, Sakhalinskaya TPP-2 (first phase)) is approaching completion. Planned financing volume of these projects for 2017-2018 is RUB 28,395.69 mn, with commissioning of 433.48 MW new electrical and 687.80 GCal*h of heating capacity.
In 2017, RusHydro is planning to finance investment projects, implemented by Company’s subsidiaries as well as R&D activity in total amount of RUB 60,990.84 mn, including:
The Board of Directors approved annual procurement program of RusHydro for 2017.
The Board of Directors approved the report on execution of KPIs of RusHydro for the third quarter of 2016.
The Board of Directors approved and introduced as of 01.01.2017 annual key performance indicators of the members of the Management Board of PJSC RusHydro for the year 2017 along with Methodology for calculation and evaluation of these KPIs. The Board of Directors also approved key performance indicators of the Long-Term Motivation Program of PJSC RusHydro for the first cycle for the years 2017 - 2019 along with methodology for calculation and evaluation of these KPIs.
With the view to implement directives of the Government of the Russian Federation on aligning management compensation with KPIs of Long Term Development Program (LTDP KPIs), the Board of Directors charged Nikolay Shulginov, Chairman of the Management Board - General Director of RusHydro, to amend the list and methodology of the LTDP KPIs of RusHydro Group for the years 2016-2020 accordingly.
The Board of Directors reviewed status of implementation of 4 priority projects in the Far East (Yakutskaya TPP-2 (first phase), Blagoveshenskaya CHP (2nd phase), CHP in Sovetskaya Gavan’, Sakhalinskaya TPP-2 (first phase)) as of September 30, 2016.
The Board of Directors approved RusHydro’s insurance program 2017.
The approved program provides for 2.8% reduction of insurance costs in 2017 as compared to 2016. The reduction is explained by optimization of the overall insurance program, reduction of insured persons due to personnel optimization, reduced number of vehicles employed by the Company and other efficiency enhancing measures.
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.
Shares / ADR