RusHydro announces 1Q 2020 IFRS results
June 4, 2020. Moscow, Russia. RusHydro Group (hereinafter referred to as the “Group”, ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces its condensed consolidated interim unaudited financial information prepared in accordance with International Financial Reporting Standards (IFRS) for the 1st quarter of 2020.
Key highlights for the first quarter of 2020:
1Q 2020/2019 highlights (in RUB mn)
Nikolay Shulginov, Chairman of the Management Board – General Director of RusHydro commented: “RusHydro Group demonstrated solid operational and financial results in the first quarter of 2020 as a result of systematic efforts aimed at improvement of operational and financial performance, optimization of manageable operational expenses and growth of the company’s core value.”
In the first quarter of 2020, electricity generation by RusHydro Group amounted to 34,371 GWh, an increase of 18.6% as compared to the first quarter of 2019. The Group’s total power production including Boguchanskaya hydropower plant was 39,008 GWh (+19.2%). Total electricity generation by hydropower and pumped storage plants of RusHydro Group in 1Q 2020 increased by 29.6% to 24,823 GWh, total output thermal power plants in the Far East decreased by 3.0% to 9,431 GWh, while output of geothermal power plants in 1Q 2020 increased by 9.4% to 117 GWh .
Main factors affecting operating results in in January-March 2020 were:
Heat output by RusHydro’s Group’s thermal plants in the Far Eastern Federal District in the first quarter of 2020 increased by 0.6% to 12,246 GCal as compared to the corresponding period of 2019 due to lower air temperatures in the regions of presence of JSC DGK, PJSC Yakutskenergo and JSC Chukotenergo.
In the first quarter of 2020, total electricity output by RusHydro’s retail companies, JSC ESC RusHydro, PJSC Krasnoyarskenergosbyt, JSC Chuvash retail company and PJSC Ryazan retail company decreased by 4% as compared to the same period in 2019 and amounted to 5,371 GWh.
Key events of for the period January-March 2020
Revenue breakdown in 1Q 2020/2019 (in RUB mn)
In the first quarter of 2020, total revenue of the Group increased by 7.5% to RUB 117,684 mn as compared to RUB 109,460 in the first quarter of 2019. The change is associated with the following key factors:
Operating expenses in 1Q 2020/2019 (in RUB mn)
Total operating expenses in the first quarter of 2020 compared to the same period last year increased by 2.3% to RUB 88,302 mn due to the following factors:
The Group’s net profit increased by 56.9% to RUB 25,908 mn. Adjusted net profit in the reporting period amounted to RUB 23,431 – an increase of 22.4% as compared to the same period last year.
The difference between the reported and adjusted profit is attributed mainly to the recognition of change in fair value of the derivative financial instrument as a result of change in fair value of non-deliverable forward contract following increase of market price of PJSC RusHydro’s shares in the reporting period as well as recognition of impairment of financial assets resulting from measuring expected credit losses of accounts recievables
In the first quarter of 2020, EBITDA increased by 23.8% to RUB 36,613 mn compared to the same period of 2019.
Key indicators of financial position
As of March 31, 2020, the Group's assets increased by RUB 27,036 mn or 2.9% to RUB 952,155 mn against the comparable figure as at December 31, 2019 following increase in accounts receivable and increase in property, plant & equipment (following execution of the Group’s investment program).
As at the end of the reporting period, the Group's liabilities increased insignificantly - by RUB 743 mn or 0.2% to RUB 355,987 mn as compared to December 31, 2019.
Events after the reporting date
The full financial statements are available on the Company’s website at: http://www.eng.rushydro.ru/investors/reports
 Operating profit is calculated as the difference between revenue, other operating profit and operating expenses.
 EBITDA is calculated as operating profit/loss excluding depreciation of property, plant and equipment, amortization of intangible assets, impairment of property, plant and equipment, impairment of financial assets, profit / loss on disposal of property, plant and equipment and other non-cash items of operating income and expenses.
 Net profit is adjusted for the effects of recognition of financial income/expense arising from the change in fair value of non-deliverable forward contract, impairment of fixed assets, impairment of financial assets, profit / loss on disposal of property, plant and equipment, as well as other operating non-cash income.
 The Boguchanskaya hydropower plant is part of the Boguchanskiy Energy and Metals Complex (BEMO), a 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.
 In July 2017, the Resolution of the Russian Government No. 895 “On reaching basic rates (tariffs) for electric power (capacity) in the territories of the Far East Federal region (the “Far East”)” became effective, under which rates for consumers in the territories of the Far East should be reduced starting from 1 January 2017 to the basic level of RUB 4.00 / kWh, from 1 January 2018 to RUB 4.30 / kWh, from 1 January 2019 to RUB 4.69 / kWh, from 1 January 2020 to TUB 5 / kWh. According to the Resolution of the Russian Government No. 1614-r of 28 July 2017, PJSC RusHydro was appointed as the recipient of a premium to the price for capacity provided by the Company in the price zones of the wholesale market under CCS agreements. The premium to the price for capacity is set in order to achieve the basic level of rates (tariffs) for electricity (capacity) planned for the next regulation period in the Far East constituent regions. Within the amounts defined by Resolution No. 1615-r of the Russian Government dated 28 July 2017, the Company translates the collected amounts of margin in the form of free-of-charge targeted contributions to the budgets of the respective regions. The Group companies being guaranteeing suppliers will receive compensation for the shortage of income related to the reduction of rates, through subsidies from the Far East constituent regions.
 Here and hereinafter the operating expenses do not include impairment loss.
 includes grid company services
Shares / ADR