29, 2018. Moscow,
Russia. PJSC RusHydro (ticker
symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces that the Company's
Board of Directors held a meeting in absentia on October 25, 2018.
The Board of Directors took into consideration the
report on execution of RusHydro Group’s long-term development
program (LDP) for the first half of 2018.
The Company successfully carries out the main
responsibilities outlined in the document. Results for the first half
of the year reflect systematic improvement of the Group’s financial
and operating performance.
Financial results for the first half of 2018 are
showing positive momentum. The Group’s EBITDA increased by 16.3%
against the corresponding period of 2017 and reached RUB 59.95 bn
while net income demonstrated growth of 64.5% to RUB 36.69 bn. Total
electricity production increased by 6% and reached 67.5 GWh.
RusHydro continued carrying out its key investment
projects such as first phase of Sakhalinskaya GRES-2, TPP in city of
Sovetskaya Gavan’, Zaramagskaya HPP-1 and Ust-Srednekanskaya HPP.
In the first half of 2018 installed capacities of Novosibirskaya HPP,
HPPs of the Upper-Volga cascade, Votkinskaya HPP, Zhigulevskaya HPP
increased by 5 MW, 10 MW, 15 MW and 10.5 MW, respectively.
Following localization of certain equipment and
parts production in the Russian Federation, RusHydro is ramping up
the share of domestically manufactured equipment within the scope of
fulfillment of the its integrated modernization program.
In the first half of 2018 RusHydro continued to
carry out activities aimed at increasing efficiency and transparency.
PricewaterhouseCoopers, one of top consulting firms, gave high marks
for the Board of Directors’ performance following an independent
research. The experts acknowledged RusHydro’s Board of Directors’
compliance with Russian and British corporate governance codes
regarding its composition, role and responsibility. Single standards
in procurement and loan policy, internal control, risk management,
insurance and business planning have been introduced in the Group’s
The Board of Directors approved revisions to the
long-term development program of RusHydro Group for 2018-2011 in
accordance with fulfillment of the decree of the President of the
Russian Federation dated 07.05.2018 “On the national goals and
strategic objectives of the Russian Federation development for the
period up to 2024” and amendments of the program’s key
Amendments include additional activities aimed at
modernization of the thermal generation in the Far East, improvement
of environment protection system, implementation of intelligent
systems and digital systems in human resource management.
The Board approved terms of reference to monitor
implementation of the long-term development program of RusHydro Group
for 2018, 2019 and 2020.
The progress report is conducted by an independent
organization on an annual basis since the Group’s LDP has been
approved. Recommendations of the Ministry of Economic Development of
the Russian Federation and Federal Agency for State Property
Management of the Russian Federation have been factored into the
terms of reference.
The Board of Directors approved the Program on
intellectual rights management of RusHydro Group.
The document is aimed at developing single
standards of intellectual property management, fostering conditions
for the Group’s sustainable development and achieving key
efficiency target metrics in innovation development. The program
includes key aspects such as protection of intellectual rights, legal
protection and commercial application of intellectual activity
The Board of Directors authorized Nikolay
Shulginov, Chairman of the Management Board – General Director to
take inventory of RusHydro Group’s intellectual rights by
30.11.2018 and to approve an action plan on their legal protection by
The Board of Directors acknowledged the long-term
program on substitution of obsolete capacities and development of the
The program is the fundamental document on
development of the Far East power system. Its ultimate goal lies in
providing consumers with guaranteed electricity through development
of the centralized power system. The program encompasses
modernization of thermal power plants in accordance with social and
economic demand and the decree of the President of the Russian
Federation dated 07.05.2018 “On the national goals and strategic
objectives of the Russian Federation development for the period up to
The program’s main priorities include generating
proposals for substitution of obsolete capacity, satisfying potential
demand and development of power infrastructure as well as adopting
optimal solutions to carry out proposed activities and measure
economic effects of the program.
The main projects include construction of
Artyomovskaya TPP-2, Khabarovskaya TPP-4, second phase of Yakutskaya
GRES-2, TPP in city of Pevek, modernization of Vladivostokskaya TPP-2
and Komsomolskaya TPP-2 and commissioning of fourth hydro unit of
Ust-Srednekanskaya HPP. RusHydro is in the discussion phase with
Ministry of Energy of the Russian Federation on inclusion the
majority of the projects into modernization of thermal generation
The Board of Directors approved cancellation of
RusHydro’s participation in JSC “Organizator stroitelstva
Boguchanskoi GES” and CJSC “Zakazchik stroitelstva Boguchnskoi
GES” by means of voluntary liquidation.
The above-mentioned companies were created for
construction of Boguchanskaya HPP. Upon construction’s completion,
the companies no longer conduct financial and operational activities
and only bear maintenance costs. As a result, they were included in
the Program of divestment of non-core assets.
The Board of Directors took into consideration
information on the status of execution of priority projects on
thermal generation construction in the Far East as of 30.06.2018.