1 Sep 2017 14:46
Results of the Board of Directors on August 29, 2017
September 1, 2017. Moscow, Russia. PJSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces that the Company's Board of Directors held a meeting in absentia on August 29, 2017.
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Substantial part of the agenda was devoted to increase efficiency of management of the Company assets. In this respect the priority measures are:
- divestment of non-core assets, including social objects and infrastructure facilities;
- reduction of management costs (including reduction of number of legal entities- members of RusHydro Group, both via consolidation of subsidiaries, operating in the same region and liquidation of non-operating companies);
- divestment of non-controlling stakes in companies, not representing strategic interest for RusHydro Group.
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The Board of Directors approved reorganization of JSC Geoterm- member of RusHydro Group, in the form of merger with JSC Pauzhetskaya GeoPP and JSC Verkhne-Mutnovskaya GeoPP. After the reorganization PJSC RusHYdro's stake in JSC Geoterm will attain no less than 99.7 %.
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The Board of Directors approved liquidation of JSC GVTs of Energy and JSC Nizhne-Zeyskaya HPP in accordance with the Program for divestment of non-core assets.
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The Board of Directors approved sale of stake in PJSC Irkutskenergo belonging to PJSC RusHydro (0.090152 %), to Telmamaskaya HPP, LLC in accordance with the Program for divestment of non-core assets. The sale will lead to termination of participation of RusHydro in PJSC Irkutskenergo.
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The Board of Directors approved auction procedures for selling stake in JSC Zharki (25%+1 share) via a public offer , in accordance with the Program for divestment of non-core assets.
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The Board of Directors approved report on progress of Plan of divestment of non-core assets for the 1H 2017.
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The Board of Directors approved gratuitous transfer of property of Agulskaya Small HPP, not operating since 2010, to municipal authority of Agulsky Region of Dagestan. Transfer of the plant to the municipal authority will eliminate costs, associated with maintenance of a non-operating asset.
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The Board of Directors approved donating of housing located in Talakan settlement of Bureysky district of Amur Region to tenants, in accordance with the Program for divestment of non-core assets and Provision of improvement of housing conditions of employees. Donating of the apartments will eliminate costs, associated with maintenance of non-core assets and provide material support to people in need of social support.
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The Board of Directors approved Report on corporate social responcibility and sustainable development of RusHydro for 2016. The Report underwent public hearings and received public assurance from the Council on non-financial reporting of the Russian Union of Industrialists and Entrepreneurs (RSPP). This year the Company arranges public hearing on the Report for the second time, and the Report is reviewed by RSPP for the sixth year, proving RusHydro's commitment to openness and transparency. The report was prepared in compliance with GRI standards G4. The report for accommodates recommendation from stakeholders received during the public hearings as well as feed-back of the Council on non-financial reporting.
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The Board of Directors approved Work plan for the 2 half of 2017.
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About RusHydro
RusHydro Group is one of Russia's largest generating companies. RusHydro is the leading producer of renewable energy in Russia with over 70 generating facilities in Russia and abroad. The company also manages a number of R&D, engineering and electricity retail companies. Group's thermal assets are operated by subsidiary - RAO Energy System of East in the Far East of Russia. Total electricity generation capacity of the Group is 38.9 GW, heat capacity - 16.2 thousand GCal/h.
Russian Federation owns 60.6% in RusHydro, the rest is held by other institutional and individual shareholders (over 360,000). The company's stock is traded on Moscow Exchange (MOEX), and included in MSCI EM и MSCI Russia indexes. Company's GDRs in the IOB section of LSE, ADRs - in OTCQX.
For more information:
Investor Relations Department
Tel. +7 (800) 333 8000 ext. 1607, 1319, 1304
ir@rushydro.ru
The information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of RusHydro. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might," the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially from these statements. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia, rapid technological and market change in our industries, as well as many other risks specifically related to RusHydro and its operations.