On February 28, 2019, PJSC RusHydro announced its non-consolidated financial results under Russian Accounting Standards (RAS) for the full year ended December 31, 2018.

In 2018, revenue increased by six percent or RUB7,079 million (mln), as electricity production by PJSC RusHydro’s HPPs increased on the back of higher inflows to reservoirs of the Volga-Kama cascade in the first half of the year and to reservoirs in Siberia in the second half of the year.

Operating expenses in 2018 increased by three percent to RUB61,815 mln as compared to 2017 as a result of the following factors: (1) purchased electricity and capacity (RUB1,221 mln) following growth in unregulated capacity contracts;
(2) a water tax rate increase (RUB423 mln) following rate hikes and an increase in electricity production;
(3) property tax (RUB396 mln) following a decrease of tax allowance on movable assets; (4) repairs and maintenance (RUB132 mln) in accordance with a maintenance schedule.

The operating profit in 2018 increased by eight percent as compared to 2017 and amounted to RUB65,966 mln. RusHydro’s net profit for the reporting period increased by two percent to RUB36,726 mln.

The net profit adjusted for non-cash items decreased by three percent to RUB43,072 mln. The difference between the reported and adjusted net profit is attributed mainly to the following non-cash effects: (1) net loss on provisions for impairment of financial investments in the amount of RUB6,453 mln; (2) net loss on the reversal of bad debt reserves in the amount of RUB1,758 mln; (3) gain on the mark-to-market revaluation of financial investments in the amount of RUB1,448 mln; (4) net gain from other reserves in the amount of RUB307 mln; (5) net gain  on provisions for impairment of assets in the amount of RUB110 mln.