PJSC RusHydro (HYDR) PJSC RusHydro: RusHydro announces 9M 2021 RAS results 28-Oct-2021 / 12:07 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.

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RusHydro announces 9M 2021 RAS results

October 28, 2021. Moscow, Russia. PJSC RusHydro (MOEX, LSE: HYDR; OTCQX: RSHYY) announces non-consolidated financial results under Russian accounting standards (RAS) for the nine months ended September 30, 2021.

Key highlights:

-- EBITDA - RUB 75,811 mn (+5%);

-- Reported net profit - RUB 43,879 mn (+3%);

-- Since July 1st 2017, a surcharge to capacity prices in 1st and 2nd price zones in order to attain baselevel of end-user tariffs in the Far East of Russia is reflected in PJSC RusHydro's revenue and operating expenses[1]. In 9M21, the surcharge totaled RUB 31,139 mn, in the 9M20 - RUB 30,793 mn; Adjusted for the surcharge revenueand expenses (here and below in the text) were:

-- Revenue - RUB 114,690 mn (+9%);

-- Operating expenses - RUB 48,288 mn (+18%).

Strong 3Q results reiterated record-high EBITDA and net profit on the back of hydropower production and spot market price growth aided by effective planning of hydropower regimes and DPM payments from facilities commissioned last year.

Key financials for 3Q and 9M 2021 under RAS (in RUB mn), excluding surcharge 


                                        9M'21    9M'20    chg 3Q'21    3Q'20    chg 
Revenue (adj. for surcharge)            114,690  104,852  9%  39,549   34,343   15% 
Operating expenses (adj. for surcharge) (48,288) (41,017) 18% (16,583) (14,302) 16% 
Administrative expenses                 (5,267)  (4,616)  14% (1,914)  (1,583)  21% 
Sales profit                            61,134   59,219   3%  21,051   18,458   14% 
EBITDA[2]                               75,811   72,449   5%  26,000   22,912   13% 
Net profit                              43,879   42,716   3%  14,217   12,846   11%

Revenue

In the nine months of 2021, revenue increased by 9% or RUB 9,838 mn as compared to the corresponding period last year on the back capacity sales from facilities commissioned in 2020 aided by electricity and heat sales from Vladivostokskaya CHPP-2 from 01.01.2021.

Revenue breakdown (RUB mn) 


                   9M'21   9M'20   chg    3Q'21  3Q'20  chg 
Electricity sales  69,561  65,362  6%     25,629 20,803 23% 
Capacity sales     43,615  39,111  12%    13,664 13,395 2% 
Heat sales         1,293   92      1,305% 183    12     1,425% 
Other sales        221     287     -23%   73     133    -45% 
TOTAL              114,690 104,852 9%     39,549 34,343 15%

As of 01.01.2021, PJSC RusHydro carries out electricity and heat sales from Vladivostokskaya CHPP-2 following gaining the right for sales and tariff setting (intergroup asset structure).

Operating expenses

Operating expenses in the nine months of 2021 increased by 18% as compared to the corresponding period of last year to RUB 48,288 mn.

The main changes were observed in the following items:

-- Purchase of Vladivostokskaya CHPP-2 (increase of maintenance cost of RUB 4,700 mn, including fuel cost ofRUB 3,734 mn) with simultaneous increase in electricity and heat sales of RUB 4,878 mn;

-- Depreciation (increase of RUB 1,446 mn) following purchase of Zaramagskaya HPP-1 and VladivostokskayaCHPP-2 with simultaneous decrease in rent of RUB 1,449 mn;

-- Purchased electricity and capacity (increase of RUB 1,294 mn) following sport market prices growth.

Operating expenses breakdown (in RUB mn) 


                                        9M'21  9M'20  chg  3Q'21  3Q'20  chg 
Depreciation                            14,391 12,945 11%  4,854  4,357  11% 
Repairs and maintenance                 7,000  2,109  232% 2,355  972    142% 
(incl. fuel cost)                       3,734  -      -    1,107  -      - 
Purchased electricity and capacity      6,897  5,603  23%  2,504  2,005  25% 
Property tax                            5,434  4,761  14%  1,811  1,607  13% 
Labor expenses, taxes and contributions 4,024  4,108  -2%  1,333  1,344  -1% 
Power system services                   2,767  2,505  10%  967    884    9% 
Water tax                               2,281  2,023  13%  851    663    28% 
Other third-party services              1,465  1,455  1%   518    548    -5% 
Security expenses                       1,318  1,399  -6%  440    495    -11% 
Insurance expenses                      1,070  1,015  5%   363    345    5% 
Rent                                    569    2,018  -72% 190    670    -72% 
Other                                   1,072  1,076  0%   397    412    -4% 
TOTAL                                   48,288 41,017 18%  16,583 14,302 16%

Profit

Sales profit for the nine months of 2021 increased by 3% as compared to the same period last year and amounted to RUB 61,134 mn.

EBITDA increased by 5% to RUB 75,811 from RUB 72,449 in 9M'20.

Net profit in the reporting period came in at RUB 43,879 mn, an increase of 3% as compared to nine months of 2020.

RusHydro's financial position as of September 30, 2021

The Company's total assets increased by RUB 8,534 mn as of September 30, 2021, against the similar figure as of December 31, 2020, and amounted to RUB 1,116,533 mn. At the same time, the Company's equity increased by 2% to RUB 905,820 mn against RUB 885,312 mn as of the beginning of the reporting year.

As of September 30, 2021, total liabilities decreased by 5% or RUB 11,975 mn as compared to the similar figure as of December 31, 2020 and amounted to RUB 210,713 mn following repayment of loans and borrowings.

The Company's debt portfolio decreased by 12% as compared to the beginning of the reporting year and totaled RUB 123,469 mn. Long-term loans comprise 49% of the total portfolio.

The full financial statements are available on the Company's website at: http://www.eng.rushydro.ru/investors/ reports

RusHydro Group will announce consolidated 3Q and 9M'21 IFRS results on November 25, 2021.

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About RusHydro

RusHydro Group is the leading producer of renewable energy in Russia. It is Russia's largest generating company and is the third hydropower company in the world with over 400 generating facilities. The Group's total electricity generation capacity including Boguchanskaya HPP is 38.0 GW.

For more information:

Investor Relations Department

Tel. +7 (495) 122 0555 ext. 1304

ir@rushydro.ru

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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[1] In July 2017, the Resolution of the Russian Government No. 895 "On reaching basic rates (tariffs) for electric power (capacity) in the territories of the Far East Federal region (the "Far East")" became effective, under which rates for consumers in the territories of the Far East should be reduced starting from 1 January 2021 to the basic level of RUB 5.49 / kWh. According to the Resolution of the Russian Government No. 1614-r and No. 1615-r of 28 July 2017, PJSC RusHydro was appointed as the recipient of a premium to the price for capacity provided by the Company in the price zones of the wholesale market under CCS agreements. The premium to the price for capacity is set in order to achieve the basic level of rates (tariffs) for electricity (capacity) planned for the next regulation period in the Far East constituent regions. The Company translates the collected amounts of margin in the form of free-of-charge targeted contributions to the budgets of the respective regions. The Group's companies being guaranteeing suppliers will receive compensation for the shortage of income related to the reduction of rates, through subsidies from the Far East constituent regions..

[2] EBITDA calculated as gross profit before depreciation.

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ISIN:           US7821834048, RU000A0JPKH7 
Category Code:  QRT 
TIDM:           HYDR 
LEI Code:       2534005TJN9DX4YWVT97 
OAM Categories: 2.2. Inside information 
Sequence No.:   125453 
EQS News ID:    1244369 
 
End of Announcement  EQS News Service 
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October 28, 2021 06:07 ET (10:07 GMT)