RusHydro Group announces its operating results for the 1 quarter of 2015
JSC RusHydro (ticker symbol: MICEX-RTS, LSE: HYDR; OTCQX: RSHYY) announces operating results for the 1st quarter of 2015 of its branches and the companies of RusHydro Group reflected in consolidated financial statements.
In the 1st quarter of 2015, total electricity generation by power plants of RusHydro amounted to 26,634 GWh, a 14.4% decrease as compared to the same period of 2014. In the 1st quarter of 2015, hydropower (HPPs) and pumped storage power plants (PSPPs) of RusHydro Group decreased electricity generation by 26.5% to 16,713 GWh, output by thermal (TPPs) and geothermal plants located in the Far East of Russia increased by 18.5% to 9,921 GWh.
Electricity generation by RusHydro Group in 1Q 2015/2014, GWh
The underlying factors of the production change in January-March of 2015 were:
Center of Russia
In the 1st quarter of 2015, total water inflow to reservoirs of the Volga-Kama cascade was 26% higher than normal, but not enough to compensate low water resources in reservoirs of hydropower plants. The useful storage of the Volgo-Kama cascade reservoirs amounted to 41.9 km3, 17.8% lower than long-run average and 35% lower than in the 1st quarter of 2014.
Total water inflow to reservoirs of the Volgo-Kama cascade in the 1st quarter of 2015 amounted to 26.9 km3 as compared to the average of 21.3 km3. As of the end of March 2015, water reserves in snow packs in the basins of the Sheksninskoe, Gorkovskoe, Cheboksarskoe, Kamskoye, Votkinskoe, Kuibyshevskoe, and Nizhekamskoye reservoirs amounted to 63-99% of the norm, in the basins of the Verkhnevolzhskoe, Uglichskoe, Rybinskoe, Volgogradskoe and Saratovskoe reservoirs amounted to 5-37% of the norm.
Total electricity generation by RusHydro’s hydropower plants of the Volgo-Kama cascade together with Zagorskaya pumped storage plant in the 1st quarter of 2015 amounted to 7,006 GWh, a 30.5% decrease as compared to the same period of 2014, and 6% lower than long-run average.
South of Russia and North Caucasus
Water conditions on the rivers of the South of Russia and North Caucasus in the 1st quarter of 2015 were close or lower than long-run average. In the 1st quarter of 2015 water inflow to the Chirkeyskoe reservoir was 15% lower than long-run average.
Due to low water level (ca. 75-80% of norm) in the basin of the Sulak river, the Chirkeyskaya and Irganayskaya HPPs are operating in more intense drawdown mode.
The electricity generation by the hydropower plants of the South of Russia and North Caucasus in the 1st quarter of 2015 decreased by 26.9% to 1,037 GWh, which is 18% lower than long-run average.
In the 1st quarter of 2015, water inflow to Novosibirskoe reservoir was 20-30% higher than long-run average, to Sayano-Shushenskoe and Krasnoyarskoe reservoirs – close to long-run average.
Decrease in the electricity generation by the Sayano-Shushenskaya HPP as compared to the long-run average due to stable low water level in the basin of the Angara-Yenisey cascade. At the same time, water level in the basin of the Novosibirsky reservoir was 30% higher than normal.
In the 1st quarter of 2015, the Boguchanskaya hydropower plant increased electricity generation by 39.1% to 2,354 GWh as compared to the same period of 2014. The increase in output is attributable to reservoir filling to 206 m (design reservoir level is 208 m), commissioning of all hydro units of the plant and completion of construction of power transmission lines.
Total electricity generation by RusHydro’s Siberian hydropower plants in the 1st quarter of 2015 decreased by 13.9% to 5,156 GWh.
Due to low water level in the basin of the Zeya river during 2014, the reservoir level of the Zeyskaya HPP was not filled to its full level of 315 m. The power efficiency of the Zeyskaya HPP was reduced in accordance with the rules for water resources usage. At the same time, the output of the Bureyskaya HPP was higher than planned. Water inflow to the Kolymskoe reservoir in the 1st quarter of 2015 was 2.6x higher than normal.
Total electricity generated by hydro and geothermal power plants of the Far East in the 1st quarter decreased by 38.2% to 2,843 GWh.
In the 1st quarter of 2015, the generating assets of RAO ES of East, a subsidiary of RusHydro, produced 10,537 GWh of electricity, a 17.2% increase as compared to the 1st quarter of 2014. Of this total, 76% (8,050 GWh) was generated by JSC Far East Generating Company (DGK), which increased production by 23.8%, mainly due to 45 % decrease in electricity output by the Zeyskaya and Bureyskaya hydropower plants as compared to the 1st period of 2014, and electricity consumption at the level of the previous year. In the 1st quarter of 2015, electricity generation by the companies operating in isolated energy systems of the Far East and JSC Mobile energy (Peredvizhnaya energetika) remained flat year-on-year, in March 2015 – increased by 1.5%.
In the 1st quarter of 2015, heat output by thermal plants of RAO ES of the East decreased by 7% to 12,583 ths. GCal as compared to the same period of 2014. The decrease is mainly attributed to higher than usual air temperatures.
Heat output by thermal plants of RAO ES of the East, ths. GCal
In the 1st quarter of 2015, electricity generation by the Sevan-Hrazdan cascade of hydropower plants in Armenia increased by 23.7% to 55 GWh. The power generation by the plants of the cascade is dependent on water inflows of Hrazdan river and water releases from lake Sevan.
In the 1st quarter of 2015, total electricity output by RusHydro’s four retail companies, operating in Bashkiria, Chuvashia, Ryazan and Krasnoyarsk regions, amounted to 10,564 GWh, a 2.8% decrease as compared to the same period of 2014. In the 1st quarter of 2015, ESC RusHydro, a holding company for all electricity retail operations, increased electricity output by 192.2 GWh (or 79.6%), the retail company, operating in Chuvashia, also increased output by 78 GWh (or 9.3%) due to addition of major consumers.
The decrease in electricity output by JSC Krasnoyarskenergosbyt by 218 GWh or 4.9% and Bashkiria power retail company by 305 GWh (-6.7%) is primarily attributable to abnormally high air temperatures in January and February 2015. The reduction in output by JSC Ryazan power retail company by 55 GWh (-6.9%) is attributable to recession in manufacturing industry.
Electricity output by RusHydro Group’s retail companies, GWh
Water inflows forecast and power generation outlook
According to an updated forecast of the Hydrometeorology Center of Russia, the following dynamics of water inflows to the major reservoirs is expected in the 2nd quarter of 2015:
[i] 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.
[ii] Includes generation by HPPs of JSC RusHydro, Kolymskaya HPP and Viluiskie HPPs, part of RAO ES of East group.
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.