31 Oct 2017 09:39
Results of the Board of Directors on October 27, 2017
October 31, 2017. Moscow, Russia. PJSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces that the Company's Board of Directors held a regular meeting on October 27, 2017.
Opening the meeting Chairman of the Board of Directors, Deputy Chairman of the Government of the Russian Federation - Plenipotentiary Representative of the President in the Far Eastern Federal District, Yuri Trutnev, said: 'RusHydro is a strategic company with systemic influence on development of the priority Far Eastern region, as well as the Russian electricity sector in general. RusHydro implements infrastructure projects in priority development areas of the Russian Far East and important investment projects all over the country. At the same time RusHydro is a public company seeking value-additive growth and rational capital use. In 2017, RusHydro successfully implemented a complex of measures to improve financial stability and performance, effectively reduced debt of its Far Eastern subgroup, and completed integration of headquarters of PJSC RusHydro and PJSC RAO ES East. It's important for the management to continue increasing investment appeal of the company for shareholders and investors to benefit the Russian Federation as majority shareholder'.
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The Board of Directors approved the shareholder value growth plan through 2021. The Board instructed the management to prepare necessary letters to the Government of the Russian Federation with the aim to support plan implementation, as well as develop draft legislation to introduce long-term tariff system and return on investment in the Far East of Russia.
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The Board of Directors deemed expedient joining the United Nations Global Compact as part of implementation of environmental policy and one of the measures in the framework of Year of ecology proclaimed by the Presidential decree. In accordance with the Global Compact RusHydro undertakes to uphold both the principles of the UN Global Compact and will submit the annual Communication on Progress.
Global Compact is the largest UN initiative designed for business to promote sustainable development, and uniting over 13,000 companies, financial institutions and organizations from 170 countries worldwide, including around 80 participants from Russia. Joining of the UN Global Compact is meant to foster main principles for protection of environment, human rights, anti-corruption and fair labour relations. Earlier this year, on the sidelines of the Eastern Economic Forum RusHydro signed the letter of commitment addressed to the UN Secretary General in support of the United Nations Global Compact and its ten principles with respect to human rights, labour, environment and anti-corruption.
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The Board of Directors instructed the Chairman of the Management Board - General Director to ensure implementation and funding (in the form of intergroup loan to PJSC Magadanenergo) of the second stage of grid connection of 220 kV transmission line Orotukan-Palatka-Tsentralnaya to the power system of Magadan. The Board of Directors also instructed to prepare tariff application.
The Board of Directors approved the increase in intergroup loan until December 31, 2019, to PJSC Magadanenergo in the framework of agreement from June 28, 2017, by RUB 1 bn and conclusion of an addendum to the agreement.
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The Board of Directors instructed the Chairman of the Management Board - General Director to ensure implementation and funding of the 1st stage of investment project to commission two 110 kV transmission lines Pevek-Bilibino in Chukotka in the total amount not exceeding RUB 5 bn. The Board of Directors instructed to provide intergroup loan to JSC Chukotenergo (with potential loan capitalization option) to be returned on demand but no later than within 10 years from conclusion of loan agreement.
The project aims to provide reliable energy supply to Chukotka following decommissioning of key power generation facilities in the region.
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The Board of Directors approved amended 2017 corporate charitable and sponsorship plan of RusHydro Group.
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.