RusHydro ups Q1 IFRS EBITDA 20%, adjusted profit 32%
MOSCOW. July 4 (Interfax) - Russian power generating company OJSC RusHydro increased its earnings before taxes, depreciation and amortization (EBITDA) by 19.7% year-on-year to 23.122 billion rubles in the first quarter of 2013, according to a presentation of the company's results to International Financial Reporting Standards (IFRS) published on the RusHydro website.
Net profit adjusted for non-cash items grew 32% to 14.588 billion rubles, while net profit before the adjustment edged up 0.4% to 10.698 billion rubles.
Analysts polled by Interfax had previously forecast RusHydro's EBITDA at 22.749 billion rubles for Q1 2013, up 17.8% year-on-year. The consensus prediction for adjusted net profit was 26.6% growth to 13.486 billion rubles.
RusHydro attributed its higher EBITDA to increased electricity output and higher electricity prices on the day-ahead market, as well as higher capacity prices.
Revenues were up 3.7% to 88.358 billion rubles in Q1 2013.
According to RusHydro, revenues rose because of growth in power generation and electricity prices on the day-ahead market, as well as increased capacity prices under competitive capacity selection in Q1 2013 following regular indexation.
There was a decrease in OJSC RAO Energy System of East's (RAO ESE) revenue "following lower power and heat output from thermal stations squeezed out by hydro," the presentation said.
RusHydro's retail segment posted falling revenues due to a reduction in non-tariff sources of income to retail companies starting in mid-2012.
Operating costs decreased 1.4% to 70.27 billion rubles in Q1 2013.
According to RusHydro, fuel expenses edged down 0.3% due to "squeeze out of thermal generation by hydro in the Far East and downward/flat dynamics for other major expenses," the presentation said.
Purchased power and electricity distribution expenses were down by 3.5% and 2.3% respectively, mostly due to a decrease in electricity output by retail companies. This was also due to RusHydro's implementation of "measures aimed at lowering power purchase by hydropower plants and optimization of hydropower plants' load," the presentation said.
Furthermore, expenses were influenced by virtually no growth in wage costs resulting from optimization of the group's organizational structure and business processes, as well as reduced depreciation resulting from fixed asset impairment as of December 31, 2012 at certain enterprises.
RusHydro is planning to keep operating costs below inflation in 2013.
According to the presentation, RusHydro attributed its quarterly results to "higher than average water resources in reservoirs in the Far East and Center of Russia following the heavy rainfalls and floods in late 2012," as well as optimized costs and favorable day-ahead prices.
RusHydro owns the majority of Russia's hydro-electric power plants, controls ES of East and owns several power supply assets. The group's totaled installed power capacity is almost 36.6 GW. RusHydro is controlled by the government.