28.10.2021
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RusHydro announces 9M 2021 RAS results

October 28, 2021. Moscow, Russia. PJSC RusHydro (MOEX, LSE: HYDR; OTCQX: RSHYY) announces non-consolidated financial results under Russian accounting standards (RAS) for the nine months ended September 30, 2021.


Key highlights:

  • EBITDA – RUB 75,811 mn (+5%);
  • Reported net profit – RUB 43,879 mn (+3%);
  • Since July 1st 2017, a surcharge to capacity prices in 1st and 2nd price zones in order to attain base level of end-user tariffs in the Far East of Russia is reflected in PJSC RusHydro’s revenue and operating expenses 1. In 9M21, the surcharge totaled RUB 31,139 mn, in the 9M20 – RUB 30,793 mn; Adjusted for the surcharge revenue and expenses (here and below in the text) were:
  • Revenue – RUB 114,690 mn (+9%);
  • Operating expenses – RUB 48,288 mn (+18%).


Strong 3Q results reiterated record-high EBITDA and net profit on the back of hydropower production and spot market price growth aided by effective planning of hydropower regimes and DPM payments from facilities commissioned last year.


Key financials for 3Q and 9M 2021 under RAS (in RUB mn), excluding surcharge


9M’21

9M’20

chg

3Q’21

3Q’20

chg

Revenue (adj. for surcharge)

114,690

104,852

9%

39,549

34,343

15%

Operating expenses (adj. for surcharge)

(48,288)

(41,017)

18%

(16,583)

(14,302)

16%

Administrative expenses

(5,267)

(4,616)

14%

(1,914)

(1,583)

21%

Sales profit

61,134

59,219

3%

21,051

18,458

14%

EBITDA 2

75,811

72,449

5%

26,000

22,912

13%

Net profit

43,879

42,716

3%

14,217

12,846

11%


Revenue


In the nine months of 2021, revenue increased by 9% or RUB 9,838 mn as compared to the corresponding period last year on the back capacity sales from facilities commissioned in 2020 aided by electricity and heat sales from Vladivostokskaya CHPP-2 from 01.01.2021.


Revenue breakdown (RUB mn)


9M’21

9M’20

chg

3Q’21

3Q’20

chg

Electricity sales

69,561

65,362

6%

25,629

20,803

23%

Capacity sales

43,615

39,111

12%

13,664

13,395

2%

Heat sales

1,293

92

1,305%

183

12

1,425%

Other sales

221

287

-23%

73

133

-45%

TOTAL

114,690

104,852

9%

39,549

34,343

15%


As of 01.01.2021, PJSC RusHydro carries out electricity and heat sales from Vladivostokskaya CHPP-2 following gaining the right for sales and tariff setting (intergroup asset structure).


Operating expenses


Operating expenses in the nine months of 2021 increased by 18% as compared to the corresponding period of last year to RUB 48,288 mn.


The main changes were observed in the following items:

  • Purchase of Vladivostokskaya CHPP-2 (increase of maintenance cost of RUB 4,700 mn, including fuel cost of RUB 3,734 mn) with simultaneous increase in electricity and heat sales of RUB 4,878 mn;
  • Depreciation (increase of RUB 1,446 mn) following purchase of Zaramagskaya HPP-1 and Vladivostokskaya CHPP-2 with simultaneous decrease in rent of RUB 1,449 mn;
  • Purchased electricity and capacity (increase of RUB 1,294 mn) following sport market prices growth.


Operating expenses breakdown (in RUB mn)


9M’21

9M’20

chg

3Q’21

3Q’20

chg

Depreciation

14,391

12,945

11%

4,854

4,357

11%

Repairs and maintenance

7,000

2,109

232%

2,355

972

142%

(incl. fuel cost)

3,734

-

-

1,107

-

-

Purchased electricity and capacity

6,897

5,603

23%

2,504

2,005

25%

Property tax

5,434

4,761

14%

1,811

1,607

13%

Labor expenses, taxes and contributions

4,024

4,108

-2%

1,333

1,344

-1%

Power system services

2,767

2,505

10%

967

884

9%

Water tax

2,281

2,023

13%

851

663

28%

Other third-party services

1,465

1,455

1%

518

548

-5%

Security expenses

1,318

1,399

-6%

440

495

-11%

Insurance expenses

1,070

1,015

5%

363

345

5%

Rent

569

2,018

-72%

190

670

-72%

Other

1,072

1,076

0%

397

412

-4%

TOTAL

48,288

41,017

18%

16,583

14,302

16%


Profit


Sales profit for the nine months of 2021 increased by 3% as compared to the same period last year and amounted to RUB 61,134 mn.


EBITDA increased by 5% to RUB 75,811 from RUB 72,449 in 9M’20.


Net profit in the reporting period came in at RUB 43,879 mn, an increase of 3% as compared to nine months of 2020.


RusHydro's financial position as of September 30, 2021


The Company's total assets increased by RUB 8,534 mn as of September 30, 2021, against the similar figure as of December 31, 2020, and amounted to RUB 1,116,533 mn. At the same time, the Company’s equity increased by 2% to RUB 905,820 mn against RUB 885,312 mn as of the beginning of the reporting year.


As of September 30, 2021, total liabilities decreased by 5% or RUB 11,975 mn as compared to the similar figure as of December 31, 2020 and amounted to RUB 210,713 mn following repayment of loans and borrowings.


The Company's debt portfolio decreased by 12% as compared to the beginning of the reporting year and totaled RUB 123,469 mn. Long-term loans comprise 49% of the total portfolio.


The full financial statements are available on the Company’s website at: http://www.eng.rushydro.ru/investors/reports


RusHydro Group will announce consolidated 3Q and 9M’21 IFRS results on November 25, 2021.




1 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 2021 to the basic level of RUB 5.49 / kWh. According to the Resolution of the Russian Government No. 1614-r and No. 1615-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. 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’s 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.


2 EBITDA calculated as gross profit before depreciation.

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