RAO ES EAST Group doubles its 6 months 2016 EBITDA up to 8.5 bln RUB

 “RAO Energy Systems of the East” Group (part of RusHydro Group, MOEX, LSE: HYDR) publishes its unaudited condensed consolidated interim financial information for three and six months of ended on June 30, 2016, prepared in accordance with International Financial Reporting Standards (IFRS).

 The key factors for the Group financial performance were:

• 9% rise of average selling electricity price to retail consumers up to 4.01 RUB due to tariff indexation;
• 4% power production decrease of less efficient power units of JSC “FEGC” with output substitution by the Bureyskaya HPP (part of PJSC “RusHydro”).
• 4% growth of heat output accompanied by 7-10% increase of heating tariffs;
•  6% increase of average fuel price up to 3,673 Rub per reference fuel ton driven by gas prices of “Sakhalin-1” consortium.

 Main events

RAO ES EAST Group cut down electricity production in the first six months of 2016 by 3.5% YoY to 17,195 million kWh due to the 31% output increase of Bureuskaya HPPs (also part of Group RusHydro) with the power consumption in the United Energy System of the East growing 2.6% y-o-y. Export sales to China were 18% less than in the same period last year. Heat output of the Group’s CHPPs and boilers in the first six months of 2016 was up by 4% totaling 18,259 thousand Gcal.

On March 31, 2016 RusHydro Group upon repurchasing of more than 10% and consolidating over 95% of RAO ES East, PJSC within voluntary tender offer forwarded to the rest of ordinary and preference shareholders of RAO ES East, PJSC the claim for compulsory repurchase of the shares. All settlements were completed on June 08, 2016.

Revenue

The Group total revenues for the first six months of 2016, combined with government grants, increased by 9% amounting to 94,389 million RUB.