Wednesday, 15 August 2018 Inter RAO Group Consolidated Financial and Operating Results for 1H2018.
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PJSC Inter RAO Announces RAS Financial Results for the First Six Months of 2018

Inter RAO Group Announces Operating Results for the First Six Months of 2018

Inter RAO Group announced operating results for the first six months of 2018.

Indicator

First six months of 2018

First six months of 2017

+/-

Installed power generation capacity as at the end of the period, GW

33,487

31,705

+5,6%

Installed Heat production capacity as at the end of the period, GW, thous. Gcal/h

25,731

25,625

+0,4%

Electricity output, billion kWh

63,641

64,652

-1,6%

Installed capacity utilization factor (ICUF)

44,1%

47,5%

-

Heat distribution from collectors, million Gcal

23,802

22,610

+5,3%

Russian generation:

Indicator

First six months of 2018

First six months of 2017

+/-

Installed power generation capacity as at the end of the period, GW

29,232

27,449

+6,5%

Installed Heat production capacity as at the end of the period, GW, thous. Gcal/h

25,051

24,945

+0,4%

Electricity output, billion kWh

58,401

58,791

-0,7%

Share of Electricity output in Russia

10,7%

10,9%

-

Installed capacity utilization factor (ICUF)

46,4%

50,0%

-

Heat distribution from collectors, million Gcal

23,697

22,494

+5,3%

Key factors shaping dynamics of performance indicators in the Generation segment compared to the first six months of 2017 were as follows:

  • Commissioning of new generating capacities in the amount of 1 659 MW (903 MW at Permskaya GRES, 440 MW at Zatonskaya TPP in Ufa, and 316 MW at Mayakovskaya TPP and Talakhovskaya TPP in the Kaliningrad region);
  • A 124 MW increase in the installed electric capacity of current units after technical maintenance related to remarking (by 60 MW at Permskaya GRES, by 18 MW at Nizhnevartovskaya GRES, by 30 MW at Gusinoozerskaya GRES, by 16 MW at Iriklinskaya TPP);
  • Decommissioning of inefficient generating equipment at the energy generating facilities in Bashkiria of less than 1 MW;

The reduced output is predominantly due to the longer maintenance campaigns, including those in the periods of reduced profitability of electricity sales, generated by thermal power plants. The increase supply of thermal energy is due to lower average air temperatures and longer heating season in the regions where electric power plants are located.

Foreign assets: generation and distribution grids

Indicator

First six months of 2018

First six months of 2017

+/-

Installed power generation capacity as at the end of the period, GW

4,255

4,255

-

Installed Heat production capacity as at the end of the period, GW, thous. Gcal/h

0,68

0,68

-

Electricity output, billion kWh

5,240

5,861

-10,6%

Installed capacity utilization factor (ICUF)

28,3%

31,7%

-

Heat distribution from collectors, million Gcal

0,105

0,116

-10,0%

Total length of powerlines, km

5 511

5 216

+5,7%

Grid output, billion kWh

1,501

1,420

+5,7%

Energy losses

3,4%

3,2%

-

The primary drivers of changes in key indicators:

  • Increased output by Moldavskaya GRES by 34,9% due to the temporary interruption of electric energy supply to Moldova in the first six months of 2017;
  • Negative dynamics (-78%) of Trakya Elektrik output is largely due to the dispatch electric load schedule set by the system operator;
  • Reduced output in Georgia due to the low level of water balance of the Khrami river, which affected Khrami HPP.
  • The length of powerlines of Telasi JSC increased by 295 km due to the construction of lines for new consumers, and new cable lines for ensuring network redundancy, and reconstruction and morenization of the grids;
  • Grid output of Telasi JSC increased due to the development of urban infrastructure, and customer acquisition.

Supply in Russia

Indicator

First six months of 2018

First six months of 2017

+/-

Number of customers, million

15,023

14,606

+2,9%

Total sales of electric energy on the retail market, billion kWh

95,169

91,533

+4,0%

Share of the Russian retail market*

17,5%

17,2%

-

* Share of the Russian retail market - sales on the retail market from total actual consumption of electric energy in Russia (542,3billion kWh in the first six months of 2018, 532,7 billion kWh in the first six months of 2017, according to the current data from the System Operator of the Unified Energy System of Russia)

The number of customers of distributors continued to increased due to the start of operation of Vladimir Power Supply Company (which is a part of Inter RAO Group), the commissioning of residential apartments (predominantly in St Petersburg and Leningrad region), and switching residents to direct settlements with the generating supplier (shifting away from working with managing companies) in Oryol Region. RN-Energo LLC continued to engage new clients, which resulted in the increase of the number of users by 78%.

Electric energy sales increased due to the increase of the number of consumers as well as due to the colder winter of 2018.

Commercial export and import of electric energy by Inter RAO Group via Russian border:

Indicator

First six months of 2018

First six months of 2017

+/-

Total exports, billion kWh

6,955

7,552

-7,9%

Including:

Finland

3,026

2,639

+14,7%

China

1,385

1,213

+14,1%

Lithuania

1,518

1,502

+1,1%

Kazakhstan

0,659

0,625

+5,3%

Mongolia

0,175

0,134

+30,1%

South Ossetia

0,078

0,084

-7,2%

Georgia

0,031

0,215

-85,5%

Azerbaijan

0,031

0,030

+2,3%

Ukraine

0,027

0,049

-44,3%

Belarus

0,025

1,060

-97,7%

Total imports, billion kWh

3,962

3,126

+26,7%

Including:

Kazakhstan

3,812

2,819

+35,2%

Georgia

0,053

0,186

-71,6%

Azerbaijan

0,051

0,054

-5,8%

Lithuania

0,030

0,045

-33,8%

Mongolia

0,015

0,016

-1,5%

Key factors shaping the dynamics of imports and exports:

  • Increased exports to Finland resulting from the price surge on the NordPool ensuing from increased consumption and decreased electricity output by local power plants due to low water content and high coal prices;
  • Seasonal increase in supply to China;
  • Increased imports from Kazakhstan and exports to China are due to the economic efficiency of the countries;
  • A strong decrease of supplies to Georgia and Belarus due to the market conjuncture.

Next material:

Guaranteeing suppliers of Inter RAO Group Announce RAS Financial Results for the First Six Months of 2018
Consolidated
financial statements
prepared according to
IFRS
for 1Q 2018
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 33.5 GW of installed power generation capacity.

www.interrao.ru