RusHydro Group announces 2Q and 1H 2015 operating results
PJSC RusHydro (ticker symbol: MICEX-RTS, LSE: HYDR; OTCQX: RSHYY) announces operating results for the 2nd quarter and 1st half of 2015 of the parent company and the subsidiaries of RusHydro Group reflected in consolidated financial statements.
In the 2nd quarter of 2015, total electricity generation by power plants of RusHydro amounted to 30,539 GWh, a 2.4% increase as compared to the same period of 2014, total power generation in the 1st half of 2015 amounted to 57,174 GWh (-6.2%). In the 2nd quarter of 2015, hydropower (HPPs) and pumped storage power plants (PSPPs) of RusHydro Group decreased electricity generation by 0.9% to 23,568 GWh, in the 1st half of 2015 – by 13.4% to 40,281 GWh, output by thermal (TPPs) and geothermal plants located in the Far East of Russia in the 2nd quarter of 2015 increased by 15.4% to 6, 969 GWh, in the 1st half of 2015 output increased by 17.2% to 16,890 GWh.
Electricity generation by the plants of RusHydro Group, GWh
The underlying factors of the production change in January-June of 2015 were:
Center of Russia
In the 2nd quarter of 2015, water inflow to reservoirs of the Volgo-Kama cascade was 35-80% of norm, to Volgogradskoe reservoir – only 13% of norm.
Total water inflow to reservoirs of the Volgo-Kama cascade in the 2nd quarter of 2015 amounted to 124 km3 as compared to the average of 161 km3. In the 1st half of 2015, for the second consecutive year, water level of the Volga river was low. In 2015, two negative factors: low water inflow as well as low water reserves in the reservoirs resulted in water savings. Due to low water inflow and in accordance with the instructions of the Federal Water Resources Agency operations of the Rybinskaya HPP were suspended.
To maximize efficiency of the electricity generation from hydropower plants in the period of low water inflows, the company tried to minimize (or exclude altogether) the participation of hydropower plants in automatic load-frequency control during water spills from reservoirs, more selectively chose generation units to put under load, optimized electricity consumption for own needs and worked closely with regulators to ensure efficient dispatching.
Total electricity generation by RusHydro’s hydropower plants of the Volgo-Kama cascade together with Zagorskaya pumped storage plant in the 2nd quarter of 2015 amounted to 11,309 GWh, a 5.8% decrease as compared to the same period of 2014. In the 1st half of 2015, generation reached 18,315 GWh, which is 17.1% lower than in the same period of the previous year.
South of Russia and North Caucasus
Water conditions on the rivers of the South of Russia and North Caucasus in the 1st half of 2015 were close or lower than long-run average. In the 2nd quarter of 2015, water inflow to Chirkeyskoe reservoir was 10-25% higher than long-run average, water inflow to Dzaudzhikauskaya HPP and Krasnodarskiy reservoir was close to normal.
The electricity generation by the hydropower plants of the South of Russia and North Caucasus in the 2nd quarter of 2015 increased by 34.3% to 2,291 GWh, in the 1st half of 2015 – by 6.5% to 3,329 GWh.
In the 2nd quarter of 2015, water inflow to Sayano-Shushenskoe and Novosibirskoe reservoirs was close to long-run average, water inflow to reservoirs of hydropower plants located on the Angara river was 15-25% lower than normal. Overall, in the 1st half of 2015, water level in the basin of the Angara-Yenisey cascade was sustainably low, excluding Novosibirskoe reservoir where water inflow was 18% higher than normal.
Warm temperatures in mid-April as well as rainfalls resulted in the increase in water inflow to Novosibirskoe reservoir which led to increase in the amount of water released through HPP. In the end of the first decade of May, Novosibirsky and Altaysky regions faced the most intensive flood over the past 46 years. Water inflow to reservoir of the Novosibirskaya HPP during the flood period reached 7500 m³/s.
The Boguchanskaya hydropower plant in the 1st half of 2015 generated 5,964 GWh as compared to 4,243 GWh generated in the same period of the previous year. In June, 2015, the reservoir of the Boguchanskaya hydropower plant was filled to its design level of 208 m above sea level. This reservoir level will allow the plant to reach its full capacity of 2,997 MW and produce 17.6 TWh of electricity per year. Starting from the second decade of May 2015, the plant has been operating in a mode allowing to maintain navigation in the river below the dam.
Total electricity generation by RusHydro’s Siberian hydropower plants in the 2nd quarter of 2015 increased by 7.0% to 6,369 GWh, in the 1st half of 2015 – decreased by 3.5% to 11,525 GWh.
In the 2nd quarter of 2015, water inflow to Zeyskoe reservoir was close to norm, to Kolymskoe reservoir – was 35% higher than long-run average.
In order to provide for reliable and safe operation of the equipment and facilities of hydropower plants during the flood period of 2015 as well as to create spare capacity in the reservoirs to accumulate water, in the end of April, Zeyskaya and Bureyskaya HPPs operated in drawdown mode to reservoir level of 308.3 m and 236.5 m respectively.
Total electricity generated by hydro and geothermal power plants of the Far East in the 2nd quarter of 2015, decreased by 15.5% to 3,083 GWh. In the 1st half of 2015, the generation decreased by 28.1% to 5,926 GWh.
In the 2nd quarter of 2015, generating assets of RAO ES of the East, a subsidiary of RusHydro, produced 7,283 GWh of electricity, a 16% increase as compared to the 2nd quarter of 2014. In the 1st half of 2015, generation increased by 17% to 17,820 GWh.
Of this total, 76% was generated by SC Far East Generating Company (DGK), which increased production by 22% mainly due to 33% decrease in electricity output by the Zeyskaya and Bureyskaya hydropower plants as compared to the 1st half of 2014. In the 1st half of 2015, electricity generation by companies operating in isolated energy systems of the Far East increased by 1% as compared to the same period of the previous year.
In the 1st half of 2015, heat output by thermal plants of RAO ES of the East decreased by 3% to 17,527 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 2nd quarter of 2015, electricity generation by the Sevan-Hrazdan cascade of hydropower plants in Armenia decreased by 2.8% to 205 GWh, in the 1st half of 2015, electricity generation increased by 2.0% to 260 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 2nd quarter of 2015, total electricity output by RusHydro’s four retail companies, operating in Bashkiria, Chuvashia, Ryazan and Krasnoyarsk regions, amounted to 7,896 GWh, a 4.7% decrease as compared to the same period of 2014. In the 2nd quarter of 2015, ESC RusHydro, a holding company for all electricity retail operations, increased electricity output by 82 GWh (or 23.3%), power retail company, operating in Chuvashia, also increased output by 60,1 GWh (or 9.1%) due to addition of major consumers.
The decrease in electricity output by JSC Krasnoyarskenergosbyt by 141 GWh or 4.5%, Bashkiria power retail company by 365 GWh (-10.5%) and PJSC Ryazan power retail company by 27 GWh (-4.1%) is attributable to recession in manufacturing industry.
Electricity output by RusHydro Group’s retail companies, GWh
Water inflows forecast
According to the forecast of the Hydrometeorologic Center of Russia, the following dynamics of water inflows to the major reservoirs is expected in the 3rd quarter of 2015:
 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.
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.