RusHydro Group announces its 1Q 2017 operating results
April 20, 2016. Moscow, Russia. PJSC RusHydro (ticker symbol: MICEX-RTS, LSE: HYDR; OTCQX: RSHYY) announces operating results for the 1st quarter of 2017 of the parent company and the subsidiaries of RusHydro Group reflected in consolidated financial statements.
In the 1st quarter of 2017, total electricity generation by power plants of RusHydro Group amounted to 29,126 GWh, a 5.4% decrease as compared to the same period of 2016. In the 1st quarter of 2017, hydropower (HPPs) and pumped storage power plants (PSPPs) of RusHydro Group decreased electricity generation by 3.4% to 20,452 GWh, output by thermal (TPPs) and geothermal plants located in the Far East of Russia in the 1st quarter of 2017 decreased by 9.8% to 8,673 GWh.
Electricity generation by the plants of RusHydro Group, GWh
The underlying factors of the production change in January-March 2017 were:
Center of Russia
Due to low water inflow in the 4th quarter of 2016, water storage in reservoirs of the Volgo-Kama cascade, as of January 1, 2017, amounted to 50.5 km3, which is 8.6% lower than long-run average and 15.3% lower than at the same period of 2016.
Winter 2016/2017 in most regions of Russia was close to normal – without long warm periods and with relatively ample snowfalls. Due to early spring snow melt water inflow to reservoirs in the Upper Volga was higher normal by 2.1-3.5x times, to Gorkovskoe and Cheboksarskoe reservoirs – by 1.6-1.7x.Total water inflow to reservoirs of the Volgo-Kama cascade was 33.2 km3 (normal level - 21.3 km3).
Despite the ample water inflows in the 1st quarter 2017, major reservoirs the Volgo-Kama cascade have been drown down to multi-year average levels, a result of efficient cooperation with the System Operator and Russian water regulator.
Water content in snow packs in the basin of the Volgo-Kama cascade as at the beginning of April was higher than in 2016 and amounted to 104 mm (95% from multi-year average).
Total electricity generation by RusHydro’s hydropower plants of the Volgo-Kama cascade together with Zagorskaya pumped storage plant in the 1st quarter of 2017 amounted to 8,729 GWh, a 10.9% decrease as compared to the same period of 2016.
South of Russia and North Caucasus
Water conditions on the rivers of the South of Russia and North Caucasus in the 1st quarter of 2017 were close to long-run average or up to 20% higher.
The Chirkeyskoe and Irganayskoe reservoirs are being drown down to the beginning of the flood period.
The electricity generation by the hydropower plants of the South of Russia and North Caucasus in the 1st quarter of 2017 decreased by 24.7% to 1,204 GWh.
In the 1st quarter of 2017, water inflow to Novosibirskoe and Sayano-Shushenskaya HPPs reservoirs was 30-45% higher than normal.
Novosibirskaya hydropower plant already entered in an early onset of spring flooding. Spring flooding in Siberia is expected to be even.
Water content in snow packs of Siberian hydropower plants of RusHydro as at the end of March was 82-132% of the normal levels.
The Boguchanskaya hydropower plant in the 1st quarter of 2017 generated 3,175 GWh, 1.6% increase as compared to the same period of the previous year.
Total electricity generation by RusHydro’s Siberian hydropower plants in the 1st quarter of 2017 increased by 2.6% to 5,788 GWh.
In the end of the 1st quarter 2017, RusHydro started filling the reservoir of the Nizhne-Bureyskaya hydropower plant. On April 9, the intermediate reservoir level of 128 m was reached.
Total electricity generated by hydro and geothermal power plants of the Far East in the 1st quarter of 2017, increased by 18.9% to 4,077 GWh.
In the 1st quarter of 2017, generating assets of RAO ES of the East Holding, a subsidiary of RusHydro, produced 9,291 GWh of electricity, a 9.2% decrease as compared to the 1st quarter of 2016. Of this total, 74% was generated by JSC Far East Generating Company (DGK), which decreased production by 11.3% in the 1st quarter of 2017 to 6,862 GWh, mainly due to increase in electricity output by the Zeyskaya and Bureyskaya hydropower plants, as well as decrease in electricity consumption by 1.3% as compared to the previous year. In the 1st quarter of 2017, electricity generation by companies operating in isolated energy systems of the Far East decreased by 2.5% compared to 2016 on the back of lower electricity consumption in all the subregions.
In the 1st quarter of 2017, heat output by thermal plants of RAO ES of the East decreased by 9.2% to 12,102 ths. GCal as compared to 2016 due to higher temperatures.
Heat output by thermal plants of RAO ES of the East, ths. GCal
In the 1st quarter of 2017, electricity generation by the Sevan-Hrazdan cascade of hydropower plants in Armenia decreased by 46.6% to 38 GWh. The 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 1st quarter of 2017, total electricity output by RusHydro’s retail companies, operating in Chuvashia, Ryazan and Krasnoyarsk regions, amounted to 5,945 GWh, a 7% decrease as compared to the same period of 2016.
In the reporting period, JSC Krasnoyarskenergosbyt decreased its output due to a number of consumers switching to wholesale electricity purchases, higher temperatures and other factors.
ESC RusHydro, a holding company for all electricity retail operations, increased electricity output by 11.3% as compared to the same period of 2016 due to addition of major consumers.
Electricity output by RusHydro Group’s retail companies, GWh
Water inflows forecast
According to the forecast of the Hydrometeorologic Center of Russia, the following dynamics of water inflows to the major reservoirs is expected in the 2nd quarter of 2017:
 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.
 Includes generation by HPPs of JSC RusHydro, Kolymskaya HPP and Viluyskie HPPs, part of RAO ES of East group.
 2016 data doesn’t include operating data of Bashkiria electricity retail company divested to Inter RAO Group in December 2016.
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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