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2020-02-28 15:10:00

RUSHYDRO NET PROFIT +5%, RUB 38,645 MLN

ЧИСТАЯ ПРИБЫЛЬ РУСГИДРО +5%, 38,7 МЛРД. РУБ.

RUSHYDROFebruary 27, 2020. Moscow, Russia. PJSC RusHydro (MOEX, LSE: HYDR; OTCQX: RSHYY) announces non-consolidated financial results under Russian accounting standards (RAS) for the full year ended December 31, 2019.  

Key highlights:  
  • EBITDA – RUB 78,237 mn (-5%);
  • Reported net profit – RUB 38,645 mn (+5%);
  • Since July 1st 2017, a surcharge to capacity prices in 1 and 2 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 expenses1 . In 2019, the surcharge totaled RUB 32,077 mn, in the 2018 – RUB 35,032 mn; Adjusted for the surcharge revenue and expenses (here and below in the text) were:
  • Revenue – RUB 123,103 mn;
  • Operating expenses – RUB 61,807 mn. 

Key financials for 4Q and 2019 under RAS (in RUB mn), excluding surcharge  

 

2019

2018

chg

4Q'19

4Q'18

chg

Revenue (adj. for surcharge)

123,103

127,781

-4%

33,717

31,724

6%

Operating expenses (adj. for surcharge)

(61,807)

(61,815)

-0.01%

(18,596)

(18,457)

0.8%

Operating profit

61,296

65,966

-7%

15,121

13,267

14%

EBITDA2

78,237

82,498

-5%

19,437

17,395

12%

Net profit

38,645

36,726

5%

4,390

-788

657%

Net profit (adj.)3

44,194

43,072

3%

9,939

6,057

64%

  

Revenue   
In 2019, revenue decreased by 4% or RUB 4,678 mn to RUB 123,103 on the back of record HPP production in 2018 compounded by lower water inflows to the reservoirs of the Volga-Kama cascade in the first half of 2019.  

Revenue breakdown (RUB mn)  

 

2019

2018

chg

4Q'19

4Q'18

chg

Electricity sales

78,596

85,059

-8%

21,266

20,067

6%

Capacity sales

44,039

42,327

4%

12,259

11,562

6%

Other sales

468

395

18%

192

95

102%

TOTAL

123,103

127,781

-4%

33,717

31,724

6%

  

Operating expenses 
 Operating expenses in 2019 stayed flat to 2018 and amounted to RUB 61,807 mn following execution of plan on optimization of operational expenses based on independent external audit review. 
 The main changes were observed in the following items:  
  • Property tax (decrease of RUB 978 mn) due to amendments to the Tax code of the Russian Federation affecting property tax, cancelling tax for movable property effective of Jan 1, 2019;
  • Rent decreased by RUB 628 mn due to purchase of Gotsatlinskaya HPP and Zaragizhskaya HPP from subsidiaries with simultaneous increase in property tax and depreciation by RUB 183 mn and RUB 345 mn, respectively. 

 

Operating expenses breakdown (in RUB mn)  

 

2019

2018

chg

4Q'19

4Q'18

chg

Depreciation

16,941

16,532

2%

4,316

4,128

5%

Purchased electricity and capacity

8,230

8,236

-0.1%

2,003

2,346

-15%

Labor expenses, taxes and contributions

7,656

7,448

3%

2,169

2,198

-1%

Property tax

6,162

7,140

-14%

1,611

1,621

-1%

Repairs and maintenance

4,259

3,861

10%

1,815

1,670

9%

Other third-party services

3,912

3,835

2%

1,370

1,268

8%

Power system services

3,127

3,018

4%

799

765

4%

Water tax

2,072

1,887

10%

562

417

35%

Security expenses

1,762

1,748

1%

441

439

0.5%

Insurance expenses

1,746

1,756

-1%

459

511

-10%

Rent

1,310

1,938

-32%

321

482

-33%

Other

4,630

4,416

5%

2,730

2,612

5%

TOTAL

61,807

61,815

-0.01%

18,596

18,457

1%

  

Other income and expenses  
Other income in 2019 increased by RUB 510 mn or 6% and amounted to RUB 8,485 mn as compared to 2018.  
Other expenses in 2019 decreased by RUB 4,321 mn or 18% and amounted to RUB 19,400 mn as compared to 2018. 

 

Profit  
Operating profit in 2019 decreased by 7% or RUB 4,670 mn as compared to the same period last year and amounted to RUB 61,296 mn. 
Reported net profit in 2019 increased by 5% to RUB 38,645 mn. Nonetheless, in the fourth quarter of 2019 net profit amounted to RUB 4,390 mn as compared to net loss of RUB 788 mn in the corresponding period of 2018.   
Net profit adjusted for non-cash items increased by 3% and reached RUB 44,194 mn. The difference between the reported and adjusted net profit is attributed mainly to the following non-cash effects:  
  • loss (net) on provision for impairment of financial investments in the amount of  RUB 6,038 mn;
  • gain on reversal of other reserves in the amount of RUB 487 mn. 

 

RusHydro's financial position as of December 31, 2019  
The Company's total assets increased by RUB 27,388 mn as of December 31, 2019, or 3% against the similar figure as of December 31, 2018, reaching RUB 1,064,194 mn.  
As of December 31, 2019, total liabilities increased by 2% or RUB 4,617 mn as compared to the similar figure as of December 31, 2018 and amounted to RUB 190,158 mn.   
The Company's debt portfolio decreased by 2% as compared to the beginning of the reporting year and reached RUB 144,579 mn. Long-term loans comprise 83% of the total portfolio.   
The Company's equity in 2019 increased by 3% to RUB 873,979 mn against RUB 851,206 mn as of the beginning of the reporting year.

 ----- 

Tags: RUSHYDRO, РУСГИДРО