OREANDA-NEWS. RusHydro Group (Group, ticker symbol: MICEX-RTS, LSE: HYDR; OTCQX: RSHYY) announces its condensed consolidated interim unaudited financial information for the first half of 2013 under International Financial Reporting Standards (IFRS).

Key highlights for the 1st half of 2013:

Strong quarterly and half-yearly results on high storage levels and affluent water inflows, cost control, favorable pricing environment (average selling spot power prices in the 1st price zone - 1,036 RUB/MWh (+10%), in 2nd price zone - 731 RUB/MWh (+15%));

Operating costs increased by 1.6%, RusHydro Group plans to hold the growth of operating costs in FY2013 below inflation;

EBIT - RUB 27.2 bn (+46.5%), EBITDA - RUB 38.7 bn (+22.8%);

Net profit - RUB 10.8 bn compared to net loss of RUB 0.4 bn in the same period of previous year; net profit adjusted for non-cash items - RUB 23 bn (+38.0%).

Operating results

In the 2nd quarter of 2013, total electricity generation by power plants of JSC RusHydro, its subsidiaries and the Boguchanskaya hydropower plant (HPP)[v] amounted to 34,630 GWh, a 17% increase as compared to the 2nd quarter of 2012; total power generation in the 1st half of 2013 amounted to 66,633 GWh (+16%). In the 2nd quarter of 2013, hydropower plants of JSC RusHydro, its subsidiaries and the Boguchanskaya HPP increased electricity generation by 23% to 28,005 GWh, generation in the 1st half of 2013 amounted to 50,303 GWh (+25%).

The underlying factors of the RusHydro Group production change were:

higher than average water resources in reservoirs in the Far East and Center of Russia;

water inflow to reservoirs of the Volga-Kama cascade higher than long-run average;

water inflow to major reservoirs of Siberia slightly higher or close to long-run average;

Furthermore, in the end of 2012 the first units of Boguchanskaya hydropower plant were launched into commercial operation.

In the 1st half of 2013, average electricity selling price on the “day-ahead” market, a key segment of wholesale electricity market, in the 1st price zone amounted to RUB 1,036/MWh (+10% compared to the same period of 2012), in the 2nd price zone electricity price was RUB 731/MWh (+15% as compared to the same period of 2012). In the 2nd quarter of 2013, the average electricity selling price on the “day-ahead” market in the 1st price zone amounted to RUB 1,026/MWh (+13%), in the 2nd price zone - RUB 721/MWh (+13%). According to the Market Council, a significant increase in prices on the “day-ahead” in 1st pricing zone in 2013 as compared to 2012 was due to increase in gas tariffs starting from June 1, 2012, the main fuel for thermal plants in the European zone of Russia; in the 2nd price zone - due to a combination of factors, including price increase in bids of certain power stations, decrease in volumes of spinning reserve of thermal plants load as well as decrease in volumes of price-taking supply in generator's bids in excess of technological minimum.