Page 172 - RusRPTSept21

results, referring to its internal policy. However, it did reiterate that it expected to receive R2.6bn in tariff subsidies this year, which looks like a conservative estimate given that the company has already received 90% of that amount.
OGK-2 reported strong 2Q21 IFRS results on Friday, 6 August. During the quarter, revenue was up 14% y/y to RUB29.6bn, EBITDA was up 47.2% y/y to RUB9.3bn and net income jumped 77.3% y/y to RUB4.2bn. The favorable pricing environment and strong operating results contributed to the company’s healthy financials. Electricity generation in 2Q21 increased 12% y/y to 10.3mn MWh, while electricity prices on the spot market rose 16.7% y/y. The KOM capacity price increased c. 20% y/y. The strong results could be positive for OGK-2 shares, as the company’s net income was up 10% y/y to RUB11.3bn in 1H21, while the current Bloomberg consensus for OGKB's FY21 net income is RUB16.3bn. An assumed dividend payout of 50% of IFRS net income suggests a dividend yield of 11.4%. OGK-2 is scheduled to hold a conference call in Russian today at 17:00 MSK to discuss the results. The details for joining the call are below:
RusHydro published 2Q21 IFRS numbers. Conference call followed. Key takeaways:
· Revenue was up 12% y/y (including state grants, and 6.5% up ex grants), coming 7% above BCSe on the back of 11% growth in electricity retail sales. However the cost of electricity purchased increased by 30% y/y that put pressure to the overall profitability.
· EBITDA was up by 1% y/y only (-2% / -1% miss to BCSe)/Cons
· Net income came down by 5% y/y (-11% to BCSe, in line to Cons)
· Net debt increased to Rb147bn (up 8% y/y)
· Management guidance of 2021FY EBITDA is at Rb110.4 (6%
below BCSe)
RusHydro has sold 100% of its electricity retail subsidiary in Russia’s Chuvash Republic for RUB300mn, a transaction that should decrease the company’s debentures by RUB1.5bn, the company reported on Friday, 6 August. Following the transaction, HYDR’s debentures should decrease by RUB1.5bn, as HYDR will terminate its guarantees on the subsidiary’s loans, according to the company. Moreover, the deal reduces the risks HYDR faces from any potential deterioration in retail consumers’ financial discipline. The subsidiary’s revenue was RUB12.1bn in 2020, and it reported a pre-tax profit of RUB53mn and net income of RUB14.5mn for the year. The company had a net debt of RUB1.2bn at YE20.
InerRAO reported its 2Q21 IFRS results on August 28. The numbers came in above consensus estimates. Revenues grew 22% y/y to R255.7bn (4% or R10.5bn ahead of the consensus), EBITDA rose 54% y/y to R30.9bn (13% or
172 RUSSIA Country Report September 2021 www.intellinews.com