OREANDA-NEWS. November 9, 2011. SC RusHydro (ticker symbol: RTS, MICEX, LSE: HYDR; OTCQX: RSHYY) announces its unconsolidated interim financial results for the nine months ended September 30, 2011 under Russian accounting standards (RAS).

The key financial results for the 9 months of 2011 (in RUR mln)

  

9M 2011

9M 2010

chg, %

Revenue

69,460

64,715

7

Cost of goods and services sold

(30,340)

(30,223)

0.4

Gross profit

39,120

34,492

13

Other income

23,601

50,821

-54

Other expenses

(29,316)

(46,848)

-37

EBITDA

45,724

40,535

13

Net profit

24,997

30,106

-17

In the reporting period, the revenue increased by 7% to RUR 69,460 mln on the back of:

 - higher electricity output;

 - higher electricity sales on the day-ahead market in line with the market liberalization schedule;

 - higher electricity prices on the day-ahead market.

The major part of the Company's revenue is represented by the sales of electricity and capacity (RUR mln):

 

9M 2011

9M 2010

chg, %

Revenue from sale of electricity

40,776

29,255

39

Revenue from sale of capacity

28,449

35,241

-19

Revenue from the sale of heat

83

85

-2

Revenue from other operations

152

134

13

Revenue, total

69,460

64,715

7

The total cost of goods and services sold in the 9 months of 2011 increased by 0.4% year-on-year to RUR 30,340 mln.

As a result, gross profit increased 13% to RUR 39,120 mln.

In the 9 months 2011, other income totaled RUR 23,601 mln, other expenses - RUR 29,316 mln.

The major part of other income and expenses are represented by income and expenses related to novation of subsidiaries' debt in the form of promissory notes in the amount of RUR 18,468 mln.

Other expenses were most affected by losses due to mark-to-market revaluation of financial investments (RUR 5,591 mln). In particular, losses from the mark-to-market revaluation of InterRAO shares accounted for RUR 4,839 mln.

In January-September 2011, EBITDA increased by 13% to RUR 45,724 mln.

Net profit decreased by 17% to RUR 24,997 mln. The main reason behind this is a decrease of market value of financial assets held by RusHydro against the backdrop of negative situation on the financial markets.

Key indicators for RusHydro's financial position as of September 30, 2011

Total assets of RusHydro increased by 8% as compared to December 31, 2010 and totaled RUR 594,046 mln. The growth in assets is associated primarily with increase of accounts receivable by RUR 24,312 mln as a result of restructuring of subsidiaries' debt in the form of promissory notes and providing of loans.

Total obligations as at September 30, 2011, stood at RUR 63,915 mln - an increase of 38% as compared to the end of 2010, which is primarily the result of domestic bonds placement in the amount of RUR 15 bln.

The Company's equity in the 9 months of 2011 increased by 5% to 530,055 mln as compared to RUR 504,972 mln as at the end of 2010, which is explained by an increase in undistributed profit of RUR 20,718 mln.