RusHydro announces full year 2012 IFRS results
JSC RusHydro (ticker symbol: MICEX-RTS, LSE: HYDR; OTCQX: RSHYY) announces its 2012 audited consolidated financial statement under International Financial Reporting Standards (IFRS).
RusHydro Group's financial results for the reporting period include the results of a number of retail companies, which were accounted for until the disposal date – March 28th, 2011, when these companies were contributed to the share capital of OJSC Inter RAO UES in the course of the share issue of the latter.
2012 financial highlights (in RUR mn)
Comparable 2012 financial results (in RUR mn) – excl. investment component and disposal group 
For 2012 total revenue decreased by 18% from RUR 371,696 mn to RUR 305,761 mn. The Group's total expenses decreased by 14% to RUR 268,663 mn against RUR 313,617 mn in 2011. Reduction in the Group’s revenue and expenses as compared to the previous year is connected with the disposal of retail companies in late March 2011, and removal of the investment component from RusHydro’s capacity prices in 2012.
Comparable revenue increased by 16% from RUR 263,401 mn to RUR 305,761 mn. The change is associated with the following factors:
Comparable expenses rose by 19% from RUR 226,448 mn to RUR 268,663 mn. The growth can primarily be attributed to the following factors:
In the reporting period, EBITDA decreased by 18% to RUR 62,966 mn compared to RUR 76,972 mn for the previous year. Decrease in EBITDA is related to a change in the Group's structure and removal of the special investment component in capacity prices in 2012. Comparable EBITDA rose 10% on the back of increase in electricity output and unregulated power prices and growth of subsidies in the Far East.
For 2012, the Group received a net loss of RUR 25,539 mn compared to RUR 29,493 mn of net profit in 2011. Net loss occurred due to the following non-cash operations (before income tax charge):
Comparable net profit was up 14% due to higher power sales in unregulated sectors.
Key indicators of RusHydro Group’s financial position as at December 31, 2012
As at December 31st, 2012, the Group's assets increased by RUR 42,964 mn to RUR 854,747 mn against the comparable figure as at December 31st, 2011. The increase in assets is primarily due to additions to the Group's fixed assets and construction in progress (mainly Sayano-Shushenskaya HPP and Zagorskaya GAES-2) and placing of short-term deposit in JSC Sberbank of Russia in the amount of RUR 50,000 mn received in the course of additional share issue of the Company.
As at the end of the reporting period the Group's liabilities rose by RUR 30,228 mn since December 31st, 2011, to RUR 316,352 mn. The increase in the liabilities was mainly caused by new borrowings raised from JSC Sberbank of Russia, European Bank for Reconstruction and Development,JSC Bank of Moscow, UniCredit Bank Austria AG.
The consolidated financial statements of the Group are available at: http://www.eng.rushydro.ru/investors/reports/
The presentation of the results is available at: http://www.eng.rushydro.ru/investors/presentations/results_presentations/
 JSC Altayenergosbyt, JSC Mosenergosbyt and its subsidiaries, JSC Saint Petersburg Sale Company and its subsidiaries, JSC Saratovenergo, JSC Tambov Energy Retail Company and JSC United Energy Retail Company.
 Net profit is adjusted for the effects of impairment on the Group's property, plant and equipment, available-for-sale financial assets, investments in associates, long-term promissory notes, goodwill and intangible assets, and for effects of accounts receivable impairment, loss on disposal of property, plant and equipment and remeasurement of net assets of OJSC “DRSK” to fair value less cost to sell.
 Comparable financials are calculated by excluding from 2011 results earnings from an investment component, included in capacity prices of RusHydro’s hydropower plants and discontinued starting from 2012, and the results of a number of retail companies, which were accounted for until the disposal date – March 28th, 2011, when these companies were contributed to the share capital of OJSC Inter RAO UES in the course of the share issue of the latter. These comparable results were calculated using management accounting, were not audited and are presented for general information.
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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