OREANDA-NEWS. January 31, 2013. JSC RusHydro (ticker symbol: MICEX-RTS, LSE: HYDR; OTCQX: RSHYY) announces the operating results for the 4th quarter and the 12 months of 2012.

The total electricity generation by power plants of RusHydro and its subsidiaries amounted to 112,697 GWh, a 5% increase as compared to 2011. In the 4th quarter 2012, the total electricity generation increased by 16.7% to 31,255 GWh. In 2012, the hydropower plants of RusHydro increased electricity generation by 5.4%; in October-December 2012, generation increased by 26.7% as compared to the 4th quarter of 2011.

Electricity generation in 4Q 2011/2012, GWh

4Q 2012

4Q 2011

change

FY2012

FY2011

change

Far East

4,434

3,277

35.3%

14,157

12,548

12.8%

Siberia

5,884

4,973

18.3%

20,735

21,503

-3.6%

Center of Russia

10,858

8,072

34.5%

39,076

35,503

10.1%

South of Russia and North Caucasus

1,332

1,424

-6.5%

6,557

6,802

-3.6%

Armenia

45

51

-10.9%

631

651

-3.0%

RAO ES of the East

8,702

8,994

-3.2%

31,541

30,341

4.0%

TOTAL

31,255

26,792

16.7%

112,697

107,349

5.0%

TOTAL (excl. RAO ES of the East)

22,553

17,797

26.7%

81,156

77,007

5.4%

The underlying factors of the production change in 2012 were:

heaviest rainfall flood in the recorded history of the Volga-Kama cascade which resulted in significant electricity generation increase;

water inflow to major reservoirs of Siberia lower than long-run average;

decrease in electricity generation by the Zagorskaya pumped storage plant due to the technical constraints related to the construction works at Zagorskaya pumped storage plant No. 2;

launch of the first 3 hydro-units of the Boguchanskaya hydropower plant into commercial operation in December 2012;

increase in generation volumes by the Far East Generation Company in the 1st half of 2012 due to growth in electricity consumption;

flash floods in the basins of Zeyskiy and Bureyskiy reservoirs in August-September 2012;

low water inflows to hydropower plants of the North Caucus

Center of Russia

In the 1st quarter 2012, the water inflow in Volga-Kama cascade was 18% higher than long-run average.

As a result of favorable development of spring flood and its late termination due to summer rains the water losses were minimal. The water inflow in the 2nd quarter was close to long-run average and amounted to 158 km3 as compared to the average of 161 km3.

In the 3rd and 4th quarters, the cascade experienced the heaviest autumn flood in its recorded history as a result of ample rainfalls. Total inflow to reservoirs of Volga-Kama cascade in the 3rd and 4th quarters amounted to 100.1 km3 against the long-run average of 73.6 km3. During this period the reservoirs of the cascade were full. Rybinskoe, Nizhegorodskoe, Kuibyshevskoe, Saratovskoe and Volgogradskoe reservoirs were operating in overload regime. In order to overcome the autumn flood, excess water was released through spillways at Uglichskiy, Rubinskiy, Nizhegorodskiy, Kuibyshevskiy and Volgogradskiy hydropower plants.

The total electricity generation by hydropower plants of Volga-Kama cascade and Zagorskaya pumped storage plant in 2012 amounted to 39,076 GWh, a 10.1% increase as compared to 2011; the generation volumes in the 4th quarter were up 34.5% year-on-year.

Siberia

The water inflow to Sayano-Shushenskoe reservoir in the 1st quarter 2012 was 10% higher than long-run average. In the 2nd quarter, the water inflow was 20% lower than long-run average. In the 3rd quarter the water inflow to reservoirs on ObЎЇ, Yenisey, Angara was 10-35% lower than the average. In the 4th quarter, water inflow on Yenisey was close to normal, on ObЎЇ and Angara 15% lower than normal. As of January 21, 2013 the reservoir level of the Sayano-Shushenskaya hydropower plant was 537.17 m, the planned reservoir drawdown is being made with average intensity of 15-16 cm per day.

The reservoir of Novosibirskaya hydropower plant has been experiencing extremely low water inflow during the whole 1st half of the year: in the 1st quarter ЁC 25% lower than long-run average, in the 2nd quarter ЁC lower by a factor of 2. The Novosibirskaya hydropower plant has been operating with minimal water discharges to allow for navigation. By the end of the 2nd quarter the reservoir was almost full.

By late November 2012, the water level of the Boguchanskaya hydropower plant reached 185 m. Starting from December 1, 2012, first 3 units with project capacity 333 MW each were put into commercial operation. Boguchanskaya hydropower plant generated 228 GWh in December.

Due to improvement in hydrological conditions in Siberia the total electricity generation by RusHydroЎЇs hydropower plants in the 4th quarter of 2012 increased by 18.3%. In 2012, the output decreased by 3.6% to 20,735 GWh.

South of Russia and North Caucasus

Due to deficit of capacity in energy system of the North Caucasus and low water inflow in the 2nd half of 2011, and as a result of low inflow and earlier than usual spring floods in 2012 the hydrological conditions on the South of Russia and North Caucasus were unfavorable during the whole year.

The electricity generation by the plants of the North Caucasus in the 4th quarter of 2012 decreased by 6.5% to 1,332 GWh; the production in 2012 decreased by 3.6% to 6,557 GWh.

Far East

In the 1st quarter of 2012, Zeyskaya and Bureyskaya hydropower plants due to low water inflows in 2011 and ensuing low reservoir levels (24% lower than long-run average) have been operating under the regime of reservoir drawdown. By the end of the 1st quarter the water levels of Zeyskaya and Bureyskaya were 2.3 m and 1.9 m, respectively, lower than last year.

The water inflow to Zeyskoe reservoir in the 2nd quarter exceeded the long-run average by 10%. By the end of the quarter the situation with water reserves in the reservoir has improved.

In the 3rd and 4th quarter Zeyskoe and Bureyskoe reservoirs were characterized by heavy rainfalls. According to the Federal Service for hydrometeorology and environmental monitoring of Russia in the 3rd and 4th quarter the water inflow to Zeyskoe reservoir amounted to 31.2 km3 (the average is 15.1 km3).

The electricity generation by RusHydroЎЇs hydropower and geothermal plants in the Far East in the 4th quarter increased by 35.3% to 4,434 GWh; in 2012 the production increased by 12.8% to 14,157 GWh.

In the 4th quarter of 2012, the generating assets of RAO ES of the East, a subsidiary of RusHydro, generated 8,702 GWh of electricity, a 3.2% decrease as compared to the 4th quarter of 2011. In 2012, the generation rose by 4.0% to 31,541 GWh.

Of this total, 73% was generated by Far East Generating Company, which boosted production by 5% as compared to last year. The generation by companies operating in isolated energy systems of the Far East in 2012 remained almost flat year-on-year, having increased by 1%.

The major reasons for increase in generation by thermal power plants of the Far East Generating Company were:

increase in electricity consumption in the unified energy system of the Far East by 3.3% in 2012 as compared to last year, due to increase in consumption by the enterprises and infrastructure of JSC Russian Railways;

increase of electricity export to China as a result of commissioning of 500 kW high-voltage electricity line from Zeyskaya hydropower plant to the border with China;

In October-December 2012, heat output by thermal plants of RAO ES of the East rose 1%; in 2012, total output increased 3.2% to 32,320 thousand GCal.

Armenia

Electricity generation by Sevan-Hrazdan cascade power plants in 2012 was 632 GWh, a 3% decrease compared to 2011. The power generation of these power plants is dependent on water inflows of Hrazdan river and water releases from lake Sevan.