23 Mar 2011 08:06
March 23rd, 2011
RusHydro publishes audited financial statements for year 2010 in accordance with the Russian Accounting Standards
JSC RusHydro (ticker symbol: RTS, MICEX, LSE: HYDR; OTCQX: RSHYY) announces today its audited financial results for the year ended December 31, 2010 in accordance with the Russian Accounting Standards.
2010 Financial Highlights:
2010, RR, mln | 2009, RR, mln | y-o-y, % | |
Revenue | 88,979 | 78,996 | 12.6 |
Cost of goods and services sold | (45,369) | (36,704) | 23.6 |
Gross profit | 43,610 | 42,292 | 3.1 |
Other income, including | 88,806 | 32,511 | 173.2 |
Profit from revaluation of financial investments marked to market | 4,760 | - | - |
Income from sale of promissory notes | 78,903 | 25,192 | 213,2 |
Other expenses, including | (85,537) | (56,880) | 50.4 |
Loss from revaluation of financial investments marked to market | - | (21,711) | - |
Cost associated with sale of promissory notes | (78,903) | (25,118) | 214,1 |
EBITDA1 | 51,754 | 50,396 | 2.7 |
Net profit | 37,963 | 10,329 | 267.5 |
According to the results for 2010, the revenue from the sale of goods and services increased by 12.6% to 88,979 million roubles, compared to 78,996 million roubles in 2009. The main factors behind the revenue growth in 2010 were:
§ increase in the share of sales at unregulated prices in accordance with the time schedule for liberalization of the wholesale market for electricity and capacity;
§ increased electricity prices on the free market (day-ahead market and balancing market);
§ increased volume of electricity sold under free bilateral contracts.
The major part of the Company's revenue is represented by the sales of electricity and capacity:
2010, RR, mln | 2009, RR, mln | y-o-y, % | |
Revenue | 88,979 | 78,996 | 12.6 |
Revenues from sale of electricity | 40,630 | 27,350 | 48.6 |
Revenues from sale of capacity | 48,042 | 51,344 | -6.4 |
Revenues from sale of heat | 129 | 124 | 4.9 |
Revenues from other operations | 178 | 178 | - |
The cost of goods and services sold (COGS) amounted to 45,369 million roubles in 2010, a 23.6% increase compared to 2009.
The main factor behind the increase in COGS was increase in cost of purchased electricity and capacity from 8,578 million to 14,776 million, including purchases of electricity from wholesale market under free bilateral contracts.
As a result of increase in revenue and in COGS in 2010 the Company's gross profit rose by 3.1% y-o-y and amounted to 43,610 million roubles.
RusHydro's other income in 2010 totaled 88,806 million roubles compared to 32,511 in the prior year, other costs amounted to 85,537 million roubles against 56,880 million roubles in 2009. The main factor behind the increase in other income and other costs was novation of debt on promissory notes of RusHydro Group subsidiaries and associates.
The EBITDA in 2010 rose over 2009 by 2.7% to reach 51,754 million roubles.
EBITDA margin amounted to 58.2% as compared to 63.8 % a year earlier.
RusHydro's net profit in accordance with the Russian Accounting Standards rose y-o-y by 267.5% to 37,963 million roubles. The main reason for the increase in net profit in 2010 was revaluation of the stake in JSC OGK-1 marked to market, resulting in 4,691 million roubles income, while in 2009 due to negative market trends and sharp decline in the value of JSC OGK-1 shares loss of 21,683 million roubles was booked.
Key indicators of the Company's financial position as of Decemer 31, 2010
As of 31 December 2010, total assets of JSC RusHydro increased by 75,813 million roubles to 551,323 million roubles. This 15.9 % increase compared to 1 January 2010 was primarily driven by increase in accounts receivable by 67,761 million roubles, primarily due to increase in debt on promissory notes of RusHydro's Group subsidiaries and associates due to interest-free loans, given in 2010 and advances paid to equipment providers and construction contractors.
The total volume of RusHydro's liabilities as of 31 December 2010 amounted to 46,350 million roubles - an increase of 52.7 % since the beginning of the reporting period.
The increase was driven, primarily, by a long-term loan from a special purpose vehicle RusHydro Finance Ltd, received against the Loan Participation Notes placed by RusHydro in 2010 with the volume of the issue of RR 20 billion, a coupon rate of 7.875% per annum maturing in 2015.
Total equity of the JSC RusHydro amounted, as of 31 December 2010, to 504,972 million roubles, compared to 445,163 million roubles on 1 January 2010. The increase of this line by 13.4% is caused by:
§ increase in the Company's share capital by 19,000 million roubles, through placement of additional shares;
§ increase in additional capital due to share premium in the amount of 2,850 million roubles resulted from completion of additional share issue;
§ increase in retained profit by 37,631 million roubles from profit of the current year;
The number of shares, registered in the shareholder registry as of December 31, 2010 is higher by 1,860,000,000 than the number of shares in the share capital of the Company as of December 31, 2010 due to additional share issue registered on December 02, 2010.
The date of completion of the share placement is April 01, 2011 or the date of placement of the last share of the issue, depending on what date comes first. The Federal Service for Financial Markets has also allowed 50% of the issue to be traded outside the Russian Federation.
Subsequent events after the reporting date (31 December 2010)
Share option program
On December 22, 2010 RusHydro's Board of Directors (minutes # 115) has approved share option program. RusHydro's subsidiary JSC Hydroinvest was appointed the stock option plan operator. The total volume of the plan equals to 3,178,775,724 shares.
The source of shares within the stock option plan are shares that were not distributed within JSC RusHydro's first share option program, as well as shares currently held by JSC Hydroinvest. Within the plan, the price for one (1) share is RR 1.4967. The term for implementing the program is 2 years.
Additional share issue of JSC OGK-1
In December 2010 additional share issue of JSC OGK-1 in favor of JSC INTER RAO UES was completed (registered by the Federal Service for Financial Markets on July 15, 2010).
Changes in the charter documents of JSC OGK-1 were introduced on February 03, 2011. As a result of this additional share issue the Company's interest in the share capital of JSC OGK-1 has decreased from 21.71% to 14.81%.
Payment for the upcoming additional share issue of the Company
According to the Decree by the Government of the Russian Federation from December 28, 2010, 40% stake in JSC Irkutskenergo, owned by the Russian Federation should be transferred to JSC INTER RAO UES and then contributed to the share capital of the Company.
According to the Decree by the Government of the Russian Federation from December 29, 2010 the additional share issue of the Company will be paid with the property complex of five dams in Irkutsk region currently under long term rent by JSC Irkutskenergo, as well shares of the following companies: JSC Geotherm, JSC Boguchanskaya HPP, JSC Zaramagskye HPPs, JSC Ust-Srednekanskaya HPP, JSC Kamchatka gas and energy complex, JSC Pavlodolskaya HPP, JSC Hydromontazh Trust.
Full audited report for the year ended December 31, 2010 (in Russian only) is available on the Company's website: http://www.rushydro.ru/investors/disclosure/reports/finreports2/2010.
Conference call:
The Management of the Company will hold a conference call on Wednesday, March 23, 2011 at 18:00 Moscow time (15:00 London time, 10:00 New York time).
The call will be held in English and will start with a 15-20 minute presentation followed by Q&A.
A replay of the call will be available until April 6, 2011. You can also find the digital recording of the call on the Company's website after the event.
Please dial in 10-15 minutes prior to the scheduled time of the conference call.
Dial in Details:
Russia Toll Free: 8-495-580-9543
UK Access Number: 44-207-153-2027
UK Toll Free: 0800-358-0886
US Access Number: 1-480-629-9821
US Toll Free: 1-877-941-8632
Conference ID: 4426350 #
A replay of this call will be available until April 6th, 2011.
Replay Details
Access Code 4426350#
UK Local: 44 207 154 2833
UK Toll Free: 0800 358 3474
US Local: 1 303 590 3030
US Toll Free: 1-800-406-7325
DISCLAIMER
The information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of RusHydro. One 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 and rapid technological and market changes in our industries, as well as many other risks specifically related to RusHydro and its operations.