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Inter RAO Group Announces Operating Results for the Full Year 2017

Inter RAO Group announced operating results for 2017.

Indicator 2017 2016 +/-
Installed electric capacity at the end of the reporting period, GW 32.715 32.404 +0.96%
Installed heat capacity at the end of the reporting period, thousand Gcal/hour 25.632 25.833 -0.8%
Power generation, billion kWh 134.801 133.857 +0.7%
Installed capacity use rate (ICUR) 48.2% 46.8% -
Heat distribution from collectors, million Gcal 39.996 40.532 -1.3%

Russian generation:

Indicator 2017 2016 +/-
Installed capacity at the end of the reporting period, GW 28.460 28.149 +1.1%
Installed heat capacity at the end of the reporting period, thousand Gcal/hour 24.952 25.153 -0.8%
Power generation, billion kWh 122.087 120.005 +1.7%
Installed capacity use rate (ICUR) 50.4% 48.5% -
Heat distribution from collectors, million Gcal 39.799 40.322 -1.3%

Key drivers of changes in the main operating results in the Generation segment compared to 2016 include:

  • commissioning of 1,470 MW of new power generation capacity under CDA (903 MW at Permskaya TPP, 447 MW at Verkhnetagilskaya TPP and 120 MW at Omskaya TPP-3);
  • an increase in the installed electric capacity of the existing units by 60.2 MW after technical works on relabeling to 112.5 MW (including by 30 MW at Urengoyskaya TPP, by 60 MW at Permskaya TPP, by 18 MW at  Nizhnevartovskaya TPP and by 4.5 MW at Yuzhnouralskaya TPP);
  • retirement of legacy low-efficiency power generation equipment with the total installed capacity of 1,271 MW, including 865 MW at Cherepetskaya TPP, 330 MW at Verkhnetagilskaya TPP and 75 MW at Omskaya TPP-3, as well as 1 MW at Bashkir power plants, since January 1, 2017;

Foreign assets: generation, and distribution grids

Indicator 2017 2016 +/-
Installed capacity at the end of the reporting period, GW 4.255 4.255 -
Installed heat capacity at the end of the reporting period, thousand Gcal/hour 0.68 0.68 -
Power generation, billion kWh 12.714 13.852 -8.2%
Installed capacity use rate (ICUR) 34.1% 35.8% -
Heat distribution from collectors, million Gcal 0.198 0.210 -5.7%
Total length of transmission lines*, km 5 338 5 082 +5.1%
Electricity delivery to the grid*, billion kWh 2.935 2.789 +5.2%
Energy losses* 5.5% 5.7% -

The primary drivers of changes in key indicators:

  • a decrease in the output of Moldova TPP by 20.4% is related to a temporary termination of deliveries to Moldova in the first half of 2017;
  • a decrease (-10.6%) in Trakya Elektrik's output is mainly related to  the electrical load schedule determined by the system operator and repairs to equipment carried out from May through July 2017;
  • a decrease in output in Georgia was caused by the sale of Mtkvari Energy in 2016 and by low water levels, as there was less precipitation in 2017 which had an impact on Khrami HPP operation;
  • an increase in the output of Ekibastuz SDPP-2 by 10.4% is related to the growth of sales due to coming onto the centralized trade market;
  • the length of JSC Telasi transmission lines increased by 257 km and amounted to 5,338 km, as lines for new consumers and new redundancy lines were constructed, and due to reconstruction and upgrade of grids;
  • Electricity delivery of JSC Telasi to the grid increased by 5.2% due to the development of city infrastructure and connection of new consumers.

Russian sales

Indicator 2017 2016** +/-
Consumer base, million 14.631 12.913 +13.3%
Retail electricity sales, billion kWh 182.563 167.427 +9.0%
Share of Russian retail market* 17.2% 15.9% -

* The share of the Russian retail market is defined as the share of retail sales in actual total electricity consumption in Russia (1,059.5 bn kWh in 2017 compared to 1,054.2  bn kWh in 2016 according to the current data of the System Operator of the Unified Energy System of Russia. The share in the Russian retail market in 2016 includes retail electricity sales of LLC Bashkir Energy Sales Company since it became part of Inter RAO Group).

** The data for 2016 includes operations of LLC Bashkir Energy Sales Company since its acquisition.

The fact that LLC Bashkir Energy Sales Company became part of Inter RAO Group in December 2016 had the main impact on the results.

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

Electricity sales are mainly related to the increase in the number of consumers.

Commercial electricity import and export by Inter RAO Group across Russian borders:

Indicator 2017 2016 +/-
Export, billion kWh 16.699 17.002 -1.8%
Including:
Finland 5.040 5.282 -4.6%
China 3.319 3.320 -0.02%
Lithuania 3.131 3.019 +3.7%
Belarus 2.733 3.181 -14.1%
Kazakhstan 1.294 1.164 +11.1%
Georgia 0.501 0.406 +23.6%
Mongolia 0.371 0.300 +23.8%
South Ossetia 0.152 0.152 -
Ukraine 0.094 0.120 -21.5%
Azerbaijan 0.063 0.060 +6.4%
Import, billion kWh 6.230 3.143 +98%
Including:
Kazakhstan 5.736 2.726 by a factor of 2.1
Georgia 0.262 0.148 by a factor of 1.8
Azerbaijan 0.117 0.120 -2.4%
Lithuania 0.085 0.115 -26.2%
Mongolia 0.023 0.034 -32.0%

The primary drivers of changes in export and import:

  • Increase in electricity import from Kazakhstan;
  • Increase in consumption of Russian electricity in Georgia and Kazakhstan;
  • Decrease in consumption of Russian electricity in Belarus and Ukraine.

Next material:

PJSC Inter RAO has released its financial statements under RAS for 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