26-Aug-2021 / 13:48 CET/CEST
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
RusHydro Group announces 1H 2021 IFRS results
August 26, 2021. Moscow, Russia. RusHydro Group (hereinafter referred to as the "Group", ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces its condensed consolidated interim unaudited financial information prepared in accordance with International Financial Reporting Standards (IFRS) for the 2nd quarter and 1st half of 2021. The company demonstrated stable results following improvement of financial performance in the 2nd quarter of 2021 maintaining a strong EBITDA margin.
Key highlights for 1H 2021:
RUB 231,728 mn - total revenue (+6.3% y-o-y)
RUB 66,363 mn - EBITDA(-1.9 y-o-y)
28.6% - EBITDA margin (+0.6 p.p. as compared to 2020)
29.2% - EBITDA margin (+1.2 p.p. as compared to 2020)
4.6% increase in manageable cash cost growth y-o-y
RUB 19,861 mn - net profit (-5.0% y-o-y)
2Q and 1H 2021/2020 highlights (in RUB mn)
2Q/21
2Q/20
chg.
1H/21
1H/20
chg.
Revenue
107,897
100,373
7.5%
231,728
218,057
6.3%
Operating expenses
84,367
76,311
10.6%
181,122
164,613
10.0%
Other operating profit
123
558
-78.0%
534
861
-38.0%
Operating profit***
23,653
24,620
-3.9%
51,140
54,305
-5.8%
EBITDA****
31,456
31,039
1.3%
66,363
67,652
-1.9%
Net profit
19,861
20,917
-5.0%
40,290
46,825
-14.0%
Operating results
In 1H 2021, electricity generation by RusHydro Group amounted to 63,679 GWh (-7.6%), including Boguchanskaya hydropower plant*****- 73,147 GWh (-6.0%).
Main factor affecting production was return of water inflows to main reservoirs of the hydropower plants of the Volga-Kama cascade, Siberia and the Far East to the normal level or slightly above.
Detailed review of operational results is available at the Company's official website at:
The Board of Directors appointed Victor Khmarin as Chairman of the Management Board, General Director of the Company and elected the new Management Board;
PJSC RusHydro and PJSC Polyus have signed a bilateral power purchase agreement for clean electricity produced by Sayano-Shushenskaya HPP;
Conversion of Anadyrskaya CHPP from coal to natural gas has been completed, significantly reducing the impact on the environment and improving the company's ESG profile;
Analytical credit rating agency (ACRA) confirmedPJSC RusHydro's credit rating and the Company's bonds on national scale at the highest level, AAA(RU) (outlook stable);
Annual General Shareholders Meeting elected PJSC RusHydro's new Board of Directors and approved 2020 dividends of RUB 0.0530482 per share (dividend yield of 6.4%).
Revenue
Revenue breakdown in 2Q and 1H 2021/2020 (in RUB mn)
2Q/21
2Q/20
chg.
1H/21
1H/20
chg.
Electricity sales
71,400
66,520
7.3%
148,648
142,205
4.5%
Incl. grants as per Resolution of the Russian Gov't No. 895 ******
7,608
7,232
5.2%
15,763
14,464
9.0%
Capacity sales
15,132
13,899
8.9%
32,960
27,980
17.8%
Heat and hot water sales
8,682
7,725
12.4%
27,075
24,735
9.5%
Other sales
5,818
6,740
-13.7%
11,966
13,410
-10.8%
Other government grants
6,865
5,489
25.1%
11,079
9,727
13.9%
Total revenue
107,897
100,373
7.5%
231,728
218,057
6.3%
In 1H 2021, total revenue of the Group increased by 6.3% to RUB 231,728 mn as compared to 1H 2020. The change is associated with the following key factors:
increase of RUB 4,980 mn on the back of sales volume growth under capacity supply agreements (DPM) following commissioning of Zaramagskaya HPP-1, Verkhnebalkarskaya, Ust-Dzhegutinskaya and Barsuchkovskaya small HPPs;
increase of RUB 5,574 mn in Supply companies segment following mainly at PJSC DEK and PJSC Krasnoyarskenerosbyt on the back of tariff growth and increase in output;
increase of RUB 3,729 mn mainly on the back electricity sales volume growth and subsidies at Far East energy companies segment******;
decrease of RUB 2,842 mn on electricity sales in Hydropower segment following lower hydropower electricity output;
increase of RUB 2,340 mn from heat and hot water sales on the back of increase of heat output including following commissioning of CHPP in Sovetskaya Gavan in the end of 2020.
Operating expenses
Operating expenses breakdown in 2Q and 1H 2021/2020 (in RUB mn)
2Q/21
2Q/20
chg.
1H/21
1H/20
chg.
Employee benefit expenses
20,233
19,987
1.2%
40,112
39,605
1.3%
Fuel expenses
14,722
14,394
2.3%
39,025
37,103
5.2%
Third parties expenses and other *******
19,246
16,905
13.8%
38,707
36,146
7.1%
Purchased electricity and capacity
14,678
10,793
36.0%
33,487
24,200
38.4%
Depreciation
7,802
6,892
13.2%
15,512
13,919
11.4%
Taxes other than on income
3,440
3,287
4.7%
6,884
6,567
4.8%
Other materials
2,747
2,660
3.3%
4,693
4,439
5.7%
Water usage expenses
1,499
1,393
7.6%
2,702
2,634
2.6%
TOTAL
84,367
76,311
10.6%
181,122
164,613
10.0%
Total operating expenses in 1H 2021 as compared to the same period last year increased by 10.0% to RUB 181,122 mn due to the following factors:
increase in purchased electricity and capacity by RUB 9,287 mn mainly in Retail segment by PJSC DEK following increase of purchased electricity compounded by change in supplier structure towards increase of electricity purchase from third parties following divestment of Primorskaya GRES;
increase in fuel expenses by RUB 1,922 mn mainly in JSC DGK following significant increase in the purchase price of natural gas and coal and commissioning of CHPP in Sovetskaya Gavan;
increase in depreciation expense by RUB 1,593 mn following commissioning of new facilities as well as modernization at PJSC RusHydro's facilities;
increase in grid company services on electricity distribution by RUB 1,461 mn mainly in Retail segment following volume and tariff increase.
Profit
In the first half of 2021, the Group's net profit decreased by 14.0% to RUB 40,290 mn following absence of significant revaluations of the forward contract on the company's shares which was accounted for in 1H 2020.
In the same period, EBITDA decreased by 1.9% to RUB 66,363 mn.
Key indicators of financial position
As of June 30, 2021, the Group's assets increased by RUB 18,922 mn or 2.0% to RUB 960,957 mn against December 31, 2020 following increase in accounts receivable and property, plant & equipment (implementation of the Group's investment program).
As at the end of the reporting period, the Group's liabilities increased by RUB 1,090 mn or 0.3% to RUB 334,185 mn as compared to December 31, 2020 mainly due to accrual of liabilities on dividend payments for 2020.
Events after the reporting date
RusHydro Group has entered into agreement with "Goal Number Seven", the Association of Energy Markets Participants that will certify RusHydro Group's generating facilities upon which issuance of green I-REC certificates will take place. The certificates will acknowledge the origin of electricity that RusHydro Group produces from renewable energy sources.
The Board of Directors elected Deputy Chairman of the Government of the Russian Federation - Plenipotentiary Representative of the President in the Far Eastern Federal DistrictYury Trutnev as its Chairman. He has held the position of the Chairman of the Board of Directors since June 2015.
RusHydro Group has signed an agreement with Transenergoprom to divest 100% share in JSC Chuvashskaya Electricity Sales Company. Earlier RusHydro Group's Board of Directors approved the transaction and cancellation of participation in JSC Chuvashskaya Electricity Sales Company.
*Includes employee benefit expenses, fuel expenses, third parties expenses, other materials and other costs.
** Total net debt at the end of reporting period is calculated as the difference between financial debt and cash & cash equivalents (including bank deposits maturing in one year). Financial debt includes current debt, non-current debt (excluding interest payable), no
