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Inter RAO Group announces operating results for the first 9 months of 2017

Inter RAO Group announced operating results for the first 9 months of 2017.

Generation across the Group:
Indicator 9 months of 2017 9 months of 2016 +/-
Installed power generation capacity at the end of the reporting period, GW 32.565 32.468 +0.3%
Installed heat production capacity at the end of the reporting period, thousand Gcal/hour 25.632 26.192 -2.1%
Power generation, billion kWh 96.994 98.036 -1.1%
Utilization of installed capacity 46.8% 45.7% -
Heat distribution from collectors, million Gcal 26.751 25.716 +4.0%

Russian generation:
Indicator 9 months of 2017 9 months of 2016 +/-
Installed electric capacity at the end of the reporting period, GW 28.310 28.213 +0.3%
Installed heat production capacity at the end of the reporting period, thousand Gcal/hour 24.952 25.512 -2.2%
Power generation, billion kWh 87.978 88.159 -0.2%
Utilization of installed capacity 49.0% 47.6% -
Heat distribution from collectors, million Gcal 26.619 25.582 +4.1%

Key drivers of changes in the main operating results in the Generation Segment compared to the first 9 months of 2016 include:

  • retirement of 1,271 MW of legacy low-efficiency power generation equipment in Russia, including 865 MW at Cherepetskaya TPP, 330 MW at Verkhnetagilskaya TPP and 75 MW at Omskaya TPP-3 since January 1, 2017, as well as 1 MW at Bashkir power plants;
  • commissioning of
    1,428 MW of new power generation capacity under CDA (861 MW at Permskaya TPP, 447 MW at Verkhnetagilskaya TPP and 120 MW at Omskaya TPP-3);
  • sale of the 120 MW Kumertau TPP (328 Gcal/h) in November 2016;
  • An increase in the installed electric capacity of the existing units by 60.2 MW after carrying out technical works on relabeling (including by 15.7 MW at Urengoyskaya TPP, by 30 MW at Gusinoozerskaya TPP, by 10 MW at Kharanorskaya TPP and 4.5 MW at Yuzhnouralskaya TPP);
  • Repairs at power units of of Nizhnevartovskaya TPP and Permskaya TPP, Severo-Zapadnaya TPP and Kaliningradskaya TPP-2 carried out in 2016, which resulted in increased output at these plants in the first 9 months of 2017; at the same time, at Ivanovskiye CCGT and Cherepetskaya TPP repairs were carried out in 2017, due to which the output of these plants decreased;
  • Reduced utilization of power units of Iriklinskaya TPP and Kashirskaya TPP in order to optimize costs;
  • The lower air temperature in the winter of 2017 and the later end of the heating season in the spring of 2017.

Foreign assets: generation, and distribution grids
Indicator 9 months of 2017 9 months of 2016 +/-
Installed electric capacity at the end of the reporting period, GW 4.255 4.255 -
Installed heat production capacity at the end of the reporting period, thousand Gcal/hour 0.680 0.680 -
Power generation, billion kWh 9.016 9.877 -8.7%
Utilization of installed capacity 32.3% 33.7% -
Heat distribution from collectors, million Gcal 0.131 0.134 -2.2%
Length of transmission lines, km 5 267 5 015 +5.0%
Electricity delivery to the grid, billion kWh 2.160 2.008 +7.6%
Energy losses in the grids of Telasi 4.1% 4.0% -

The primary drivers of changes in key indicators:

  • divestment of Georgian Mtkvari Energy with the capacity of 600 MW of the Group in Q2 2016;
  • Moldavskaya SDPP ceased to supply energy to Moldova in April and May 2017;
  • Repairs at Trakya TPP in Turkey were carried out in April and May 2017;
  • Low water levels in Georgia affected the output of Khrami HPP (which decreased by 72 million kWh);
  • An increase in the load of Ekibastuz SDPP-2 by 387 million kWh due to getting into the Kazakhstan centralized trade market (in 2016 the plant supplied energy mainly to Russia);
  • A decrease in power consumption in Kazakhstan and Transnistria during the heating season;
  • Addition of 273 kilometers to transmission grid in Georgia due to building new grid connections and redundancy lines;
  • Electricity delivery to the grid at Telasi added 152 million kWh (7.6%) due to the growth of consumption.

Russian sales
Indicator 9 months of 2017 9 months of 2016 +/-
Consumer base, million 14.599 12.883 +13.3%
Retail electricity sales, billion kWh 132.19 120.452 +9.7%
Share of Russian retail market* 17.1% 15.8% -

* Share of Russian retail market is defined as the ratio of retail sales to total actual electricity consumption in Russia (771.9 billion kWh in the first 9 months of 2017 compared to 760.5 billion kWh in the first 9 months of 2016 according to the System Operator of the Unified Energy System of Russia).

Higher figures are related to the acquisition of a sales company in the Republic of Bashkortostan.

Besides, the number of consumers continued to grow following the signing of new agreements with suppliers within the Inter RAO Group and with commercial customers and residential consumers in new communities, and also as the transfer of consumers from other organizations continues.

At the same time, electricity sales of suppliers of last resort increased also because Mosenergosbyt concluded agreements on servicing large customers in Moscow and in the Moscow Region, as well as in other regions, and due to returning customers serviced by Oboronenergosbyt.

Besides, electricity sales also increased due to the long and cold winter of 2016-2017.

Commercial electricity import and export by Inter RAO Group across Russian borders:
Indicator 9 months of 2017 9 months of 2016 +/-
Export, million kWh 12.681 12.852 -1.3%
Including:
Finland 3.701 3.651 +1.4%
Belarus 2.455 3.013 -18.5%
Lithuania 2.356 2.025 +16.4%
China 2.351 2.415 -2.6%
Kazakhstan 0.965 0.885 +9.1%
Georgia 0.332 0.389 -14.5%
Mongolia 0.288 0.237 +21.2%
South Ossetia 0.108 0.104 +4.0%
Ukraine 0.077 0.091 -15.3%
Azerbaijan 0.047 0.042 +12.5%
Import, million kWh 4.590 2.265 by a factor of 2.03
Including:
Kazakhstan 4.155 1.914 by a factor of 2.17
Georgia 0.262 0.148 +77.5%
Azerbaijan 0.087 0.09 -4.1%
Lithuania 0.061 0.086 -28.6%
Mongolia 0.019 0.027 -29.9%
Estonia 0.00005 0.006 by a factor of 125

The primary drivers of changes in export and import:

  • Reduced deliveries of Russian electricity to Belarus and Georgia due to market conditions;
  • Economic efficiency of deliveries from Russia to Lithuania and from Kazakhstan to Russia.

Next material:

Russian Power Generation Companies of Inter RAO Group announced RAS financial results for nine months of 2017
Consolidated
financial statements
prepared according to
IFRS
for 3Q 2017
View report

Reference

Inter RAO Group is a diversified energy holding serving various segments of Russian and international electric power industry. The Group is the leading exporter and importer of electricity in Russia actively increasing electricity generation and sales, and developing new lines of business.

The corporate strategy of Inter RAO is focused on making Inter RAO a global energy enterprise, a key player in the global energy market, and Russia's leading electric utility by energy efficiency. Inter RAO Group owns and operates approximately 32 GW of installed power generation capacity.

www.interrao.ru