Inter RAO YEES : Group announces operating results for the first 9 months of 2017

Inter RAO Group announced operating results for the first 9 months of 2017.

Key drivers of changes in the main operating results in the Generation Segment compared to the first 9 months of 2016 include:

• retirement of 1,271 MW of legacy low-efficiency power generation equipment in Russia, including 865 MW at Cherepetskaya TPP, 330 MW at Verkhnetagilskaya TPP and 75 MW at Omskaya TPP-3 since January 1, 2017, as well as 1 MW at Bashkir power plants;
• commissioning of
  1,428 MW of new power generation capacity under CDA (861 MW at Permskaya TPP, 447 MW at Verkhnetagilskaya TPP and 120 MW at Omskaya TPP-3);
• sale of the 120 MW Kumertau TPP (328 Gcal/h) in November 2016;
• An increase in the installed electric capacity of the existing units by 60.2 MW after carrying out technical works on relabeling (including by 15.7 MW at Urengoyskaya TPP, by 30 MW at Gusinoozerskaya TPP, by 10 MW at Kharanorskaya TPP and 4.5 MW at Yuzhnouralskaya TPP);
• Repairs at power units of of Nizhnevartovskaya TPP and Permskaya TPP, Severo-Zapadnaya TPP and Kaliningradskaya TPP-2 carried out in 2016, which resulted in increased output at these plants in the first 9 months of 2017; at the same time, at Ivanovskiye CCGT and Cherepetskaya TPP repairs were carried out in 2017, due to which the output of these plants decreased;
• Reduced utilization of power units of Iriklinskaya TPP and Kashirskaya TPP in order to optimize costs;
• The lower air temperature in the winter of 2017 and the later end of the heating season in the spring of 2017.

The primary drivers of changes in key indicators:

• divestment of Georgian Mtkvari Energy with the capacity of 600 MW of the Group in Q2 2016;
• Moldavskaya SDPP ceased to supply energy to Moldova in April and May 2017;
• Repairs at Trakya TPP in Turkey were carried out in April and May 2017;
• Low water levels in Georgia affected the output of Khrami HPP (which decreased by 72 million kWh);
• An increase in the load of Ekibastuz SDPP-2 by 387 million kWh due to getting into the Kazakhstan centralized trade market (in 2016 the plant supplied energy mainly to Russia);
• A decrease in power consumption in Kazakhstan and Transnistria during the heating season;
• Addition of 273 kilometers to transmission grid in Georgia due to building new grid connections and redundancy lines;
• Electricity delivery to the grid at Telasi added 152 million kWh (7.6%) due to the growth of consumption.

* Share of Russian retail market is defined as the ratio of retail sales to total actual electricity consumption in Russia (771.9 billion kWh in the first 9 months of 2017 compared to 760.5 billion kWh in the first 9 months of 2016 according to the System Operator of the Unified Energy System of Russia).

Higher figures are related to the acquisition of a sales company in the Republic of Bashkortostan.

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

At the same time, electricity sales of suppliers of last resort increased also because Mosenergosbyt concluded agreements on servicing large customers in Moscow and in the Moscow Region, as well as in other regions, and due to returning customers serviced by Oboronenergosbyt.

Besides, electricity sales also increased due to the long and cold winter of 2016-2017.

The primary drivers of changes in export and import:

• Reduced deliveries of Russian electricity to Belarus and Georgia due to market conditions;
• Economic efficiency of deliveries from Russia to Lithuania and from Kazakhstan to Russia.