RusHydro Group announces 1H 2021 IFRS results
August 26, 2021. 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 2nd quarter and 1st half of 2021. The company demonstrated stable results following improvement of financial performance in the 2nd quarter of 2021 maintaining a strong EBITDA margin.
Key highlights for 1H 2021:
Key highlights for 2Q 2021:
2Q and 1H 2021/2020 highlights (in RUB mn)
In 1H 2021, electricity generation by RusHydro Group amounted to 63,679 GWh (-7.6%), including Boguchanskaya hydropower plant 5 – 73,147 GWh (-6.0%).
Main factor affecting production was return of water inflows to main reservoirs of the hydropower plants of the Volga-Kama cascade, Siberia and the Far East to the normal level or slightly above.
Detailed review of operational results is available at the Company’s official website at: http://www.eng.rushydro.ru/investors/IR_news/113805.html
Key events since January 2021
Revenue breakdown in 2Q and 1H 2021/2020 (in RUB mn)
In 1H 2021, total revenue of the Group increased by 6.3% to RUB 231,728 mn as compared to 1H 2020. The change is associated with the following key factors:
Operating expenses breakdown in 2Q and 1H 2021/2020 (in RUB mn)
Total operating expenses in 1H 2021 as compared to the same period last year increased by 10.0% to RUB 181,122 mn due to the following factors:
In the first half of 2021, the Group’s net profit decreased by 14.0% to RUB 40,290 mn following absence of significant revaluations of the forward contract on the company’s shares which was accounted for in 1H 2020.
In the same period, EBITDA decreased by 1.9% to RUB 66,363 mn.
Key indicators of financial position
As of June 30, 2021, the Group's assets increased by RUB 18,922 mn or 2.0% to RUB 960,957 mn against December 31, 2020 following increase in accounts receivable and property, plant & equipment (implementation of the Group’s investment program).
As at the end of the reporting period, the Group's liabilities increased by RUB 1,090 mn or 0.3% to RUB 334,185 mn as compared to December 31, 2020 mainly due to accrual of liabilities on dividend payments for 2020.
Events after the reporting date
The full financial statements are available on the Company’s website at: http://www.eng.rushydro.ru/investors/reports
1 Includes employee benefit expenses, fuel expenses, third parties expenses, other materials and other costs.
2 Total net debt at the end of reporting period is calculated as the difference between financial debt and cash & cash equivalents (including bank deposits maturing in one year). Financial debt includes current debt, non-current debt (excluding interest payable), non-deliverable forward contract.
3 Operating profit is calculated as the difference between revenue, other operating profit and operating expenses.
4 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.
5 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.
6 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 RUB 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
7 includes grid company services
Shares / ADR