RusHydro Group announces 3Q and 9 months 2017 operating results
October 25, 2017. Moscow, Russia. PJSC RusHydro (ticker symbol: MICEX-RTS, LSE: HYDR; OTCQX: RSHYY) announces its operating results for the 3rd quarter and 9 months of 2017 of the parent company and the subsidiaries of RusHydro Group reflected in consolidated financial statements.
Electricity generation by the plants of RusHydro Group, GWh
The underlying factors of the production change in January-September 2017 were:
Center of Russia
In 3Q 2017, due to continued rainfalls the water inflows were at all time highs. Water inflow to Gorkovskoe, Cheboksarskoe, Kamskoe and Nizhnekamskoe reservoirs was 1.3-1.7x of normal values, to Uglich, Rybinskoe and Kuibyshevskoe – 2.1-3.3x of norm. In 3Q 2017, total water inflow to reservoirs in Volga and Kama was 66.0 km3 against a normal value of 37.0 km3.
Flow control gates of the dams of Zhigulevskaya hydropower plant were open for 126 consecutive day – the longest period in cascade’s history. At the same time the amount of sterile spills was 56.74 km3 – 10% lower than in 2016 (in 2016, sterile spills lasted 55 consecutive days with total volume of 63.31 km3).
Efficient cooperation with the System Operator and Russian water authority in respect of planning of hydropower regimes allowed to bring sterile spills to a minimum, effective management of spring flooding as well as further flooding caused by rainfalls with optimal water levels and high efficiency factor.
Total production by the hydropower plants of Volga-Kama cascade, operated by RusHydro group, and Zagorskaya pumped storage in the 3nd quarter of 2017 increased by 46.8% against the same figure of 2016 to 12,395 GWh, in the 9 months of 2017 – increased by 17% to 36,203 GWh.
South of Russia and North Caucasus
In the 1st half of 2017, hydropower plants in the North Caucasus operated in conditions of normal water inflows or up to 20% higher than norm.
At the beginning of spring flooding the Chirkeyskoe reservoir was drawn down to the lowest level in the last 21 years, followed by gradual filling up of the reservoir. However, due to low water inflows the reservoir was not filled to the normal level.
Rivers of Baksan and Cherek in Republic of Kabardino-Balkaria went through a difficult spring flooding. Ample and frequent rainfalls in the mountains resulted in emergency situations in three region of the republic. Flooding caused by ample rainfalls brought significant volumes of debris to reservoirs that caused periodic downtime of Baksanskaya, Aushigerskaya, Zaragizhskaya and Kashkhatau hydropower plants,
The filling of Kuban reservoir was completed 5 days earlier than planned. The total amount – 474.8 mn m3 – should be dispensed through May 2018.
The electricity generation by the hydropower plants of the South of Russia and North Caucasus in the 3rd quarter of 2017 decreased against previous year by 15.6% to 2,259 GWh, in the 9 months of the year decreased by 16.8% to 5,705 GWh.
In the 3rd quarter of 2017, water inflow to Novosibirskoe and Sayano-Shushenskaya hydropower plants reservoirs was close to long-run average levels, to Bratskoe reservoir and Baikal – 35-50% lower than normal.
Sayano-Shushesnkaya, after the planned draw-down of the reservoir to the minimum admissible level of 500 meters, entered regime of filling-up in order to accumulate the water resources required for operations in winter. The maximum reservoir level of 538.58 m was reached in mid-September – the highest level in the last 11 years of the facility.
The Angara cascade, like in the previous year, is going through low water period. Boguchankskaya hydropower plant is working in accordance with instructions of the Yenisei Basin Directorate in order to provide sufficient levels of water to allow navigation in the Lower Angara. The reservoir level of the Boguchanskaya was drawn down lower than admissible level – to 207.5 m – to allow navigation.
Total electricity generation by RusHydro’s Siberian hydropower plants in the 3rd quarter of 2017 decreased by 35.9% to 6,319 GWh, in the 9 months of 2017 decreased – by 15.9% to 18,652 GWh.
The Boguchanskaya hydropower plant in the 3st quarter of 2017 generated 3,716 GWh, a 7.7% decrease as compared to the same period of the previous year, in the 9 months of the year – 10,463 GWh (-0.5%).
In the 2nd and 3rd quarters of 2017, water inflows to reservoirs in the Far East was close to normal (inflows to some reservoirs was 5-10% higher than normal).
Lower than normal water inflow to Zeyskoe reservoir (ca. 10%) during spring flooding didn’t allow to fill up the reservoir to a normal level of 315.0 m by the start of autumn, which should result in constraints in Zeyskaya hydropower plant’s output.
As of late August Bureyskaya hydropower plant experienced an increased water inflow due to ample rainfalls. As of August 31, 2017, the plant started sterile spills which ended in September 20. During this time, the facility dispensed 3.67 km3 of water, and accumulated 10.22 km3 to operate safely in autumn/winter period.
Total electricity generated by hydro and geothermal power plants of the Far East in the 3rd quarter of 2017, decreased by 25.0% to 3,474 GWh, in the 9 months of the year – decreased by 5.6% against the same period of previous year to 10,702 GWh.
In the 3rd quarter of 2017, generating assets of RAO ES of East Subgroup, a subsidiary of RusHydro, produced 6,389 GWh, or 21,8% higher than in the 3rd quarter of 2016. Of this total, 77% was generated by JSC Far East Generating Company (DGK), which increased production by 30.7% in the 3rd quarter of 2017, mainly due to decrease in output from hydropower plants, as well as increase in electricity consumption in the United Power System of the East by 1.9%, as well as a low base effect of 2016 when a significant amount of supply from thermal power generation was substituted by increased hydropower output.
Overall electricity production by RAO ES of East Subgroup in the 9 months of 2017 increased by 2.0% to 22,882 GWh.
In the 9months of 2017, heat output by thermal plants of RAO ES of the East decreased by 7.5% to 18,708 thousand GCal as compared to 2016. The decrease is due to higher temperatures and reduced length of heating season in a number of towns of the region.
Heat output by thermal plants of RAO ES of the East Subgroup, thousand GCal
In January-September 2017, electricity generation by the Sevan-Hrazdan cascade of hydropower plants in Armenia increased by 16% to 435 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 9 months of 2017, total electricity output by RusHydro’s retail companies, operating in Chuvashia, Ryazan and Krasnoyarsk regions, amounted to 14,908 GWh, a 4.3% decrease as compared to the same period of 2016.
The decrease in output is driven by a number of consumers switching to wholesale electricity purchases (primarily in Krasnoyarsk region), higher temperatures, and additional calendar day in 2016 due to leap year, as well as lower purchase of electricity for compensation of losses by grid companies on the back of overall reduction in electricity consumption.
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 4th 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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