RusHydro Group annual profit up

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1 April 2016, Nuclear, Solar, Wind

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Revenue for the year ended December 31, 2015 was RUB347.51 billion, compared to RUB329.56 billion for the year ended December 31, 2014.

Operating profit for the year ended December 31, 2015 was RUB34.68 billion, compared to RUB33.88 billion for the year ended December 31, 2014.

Profit before income tax for the year ended December 31, 2015 was RUB37.68 billion, compared to RUB32.19 billion for the year ended December 31, 2014.

Nikolay Shulginov, Chairman of the Management Board - General Director of PJSC RusHydro, commented: "In 2015, RusHydro Group demonstrated good results that reflected not only the improved generation by hydropower plants in the 2nd half of the year, but in a large part management's efforts aimed at optimization of operating costs and maintaining financial stability of the Group. For example, other expenses related to the headquarters in PJSC RusHydro decreased by RUB 811 mn, employee benefit expenses in PJSC RusHydro were down by RUB 251 mn as a result of headcount optimization. Our plans for 2016 are even more ambitious, as we intend to reduce operating expenses by more than 9% adjusted for inflation expectations that will allow to reduce a number of costs in real terms or keep them at the level of 2015.

"In order to improve our capital expenses, the investment plan of RusHydro Group for 2016 and the following years has also been amended. Thus, we plan to smooth the funding schedule of rehabilitation and modernization works for hydropower plants, extend the implementation schedule of certain works within comprehensive rehabilitation and modernization program and set the limit of capital allocations for such works at the level of up to RUB 30 bn per year.

"In 2016, the effect from optimization of funding of modernization works will amount to RUB 6 bn as compared to the previously planned amount. It is important to note, that delivering strong financial results going forward will only be possible providing that economically justified tariffs are set for the Far Eastern TPPs and HPPs that are currently under construction, and the problem of tariff regulation of RAO ES East holding is solved. Also, in order to further improve the Group's financial resilience, the management, together with the federal offices, will continue implementation of measures to refinance debt portfolio of RAO ES East holding."

Source: MarketLine

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