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

In 2016 there were the following changes in the structure of Inter RAO Group which had an impact on operating results:

  • In the second quarter of 2016, 100% of shares of Mtkvari Energy in Georgia were sold;
  • In December 2016, LLC Bashkir Energy Sales Company was acquired;
Generation across the Group:
Indicator Q1 2017 Q1 2016 +/-
Installed power generation capacity at the end of the reporting period, GW 31.257 33.039 -5.4%
Installed heat production capacity at the end of the reporting period, thousand Gcal/hour 25.622 26.293 -2.6%
Power generation, billion kWh 35.54 34.256 +3.7%
Utilization of installed capacity 52.6% 47.5% -
Heat distribution from collectors, million Gcal 15.593 15.429 +1.1%
Russian generation:
Indicator Q1 2017 Q1 2016 +/-
Installed capacity at the end of the reporting period, GW 27.002 28.184 -4.2%
Installed heat production capacity at the end of the reporting period, thousand Gcal/hour 24.942 25.613 -2.6%
Power generation, billion kWh 32.133 30.837 +4.2%
Utilization of installed capacity 55.1% 50.1% -
Heat distribution from collectors, million Gcal 17.506 15.338 +1.1%

Key drivers of changes in the main operating results in the Generation segment compared to Q1 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 120 MW of new power generation capacity under CDA at Omskaya TPP-3;
  • sale of the 120 MW Kumertau TPP (328 Gcal/h) in November 2016;
  • An increase in the installed capacity of the existing units by 90 MW after relabeling in the second half of 2016 (including by 31 MW at Urengoyskaya SDPP and by 30 MW at Gusinoozerskaya SDPP);
  • Decommissioning of boiler houses at Urengoyskaya SDPP and in Tomsk;
  • Optimizing the load of power generating assets.
Foreign assets: generation, and distribution grids
Indicator Q1 2017 Q1 2016 +/-
Installed capacity at the end of the reporting period, GW 4.255 4.855 -12.4%
Installed heat production capacity at the end of the reporting period, thousand Gcal/hour 0.68 0.68 -
Power generation, billion kWh 3.407 3.419 -0.4%
Utilization of installed capacity 37.1% 32.2 -
Heat distribution from collectors, million Gcal 0.087 0.091 -3.9%
Length of transmission lines, km 5 128 4 874 +5.2%
Electricity delivery to the grid, billion kWh 0.783 0.719 +8.9%
Energy losses in the grids of Telasi 2.7% 4.7% -

The primary drivers of changes in key indicators:

  • divestment of Georgian Mtkvari Energy with the capacity of 600 MW of the Group;
  • Low water levels in Georgia affected the output of Khrami HPP
  • An increase in the load of Ekibastuz SDPP-2 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 254 kilometers to transmission grid in Georgia due to building new grid connections and redundancy lines;
  • Electricity delivery to the grid at Telasi added 8.9% due to the growth of consumption in the commercial sector.
  • Due to upgrades of Telasi grids, energy losses almost halved.
Russian sales
Indicator Q1 2017 Q1 2016 +/-
Consumer base, million 14.576 12.844 +13.5%
Retail electricity sales, billion kWh 49.709 45.764 +8.6%
Share of Russian retail market* 17.2% 15.9% -

* Share of Russian retail market is defined as the ratio of retail sales to total actual electricity consumption in Russia (289.2 billion kWh in the first quarter of 2017 compared to 287.5 billion kWh in the first quarter of 2016 according to the System Operator of the Unified Energy System of Russia).

Higher figures are related to the acquisition of LLC Bashkir Energy Sales Company.

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.

Commercial electricity import and export by Inter RAO Group across Russian borders:
Indicator Q1 2017 Q1 2016 +/-
Export, million kWh 3,548 3,726 -4.8%
Including:
Finland 1,510 1,534 -1.5%
China 430 494 -12.9%
Lithuania 892 805 +10.9%
Kazakhstan 269 308 -12.6%
Georgia 197 336 -41.3%
Belarus 110 116 -5.1%
South Ossetia 52 49 +6.7%
Mongolia 50 52 -2.9%
Ukraine 22 21 +4.2%
Azerbaijan 15 13 +13.7%
Import, million kWh 1,133 427 by a factor of 2.7
Including:
Kazakhstan 1,071 359 by a factor of 3.0
Georgia 0 0.015 -100%
Azerbaijan 20 21 -3.9%
Lithuania 32 32 -
Mongolia 10 16 -37.6%

The primary drivers of changes in export and import:

  • Reduced deliveries of Russian electricity to Georgia due to marekt conditions and the lari depreciation;
  • Economic efficiency of deliveries from Russia to Lithuania and from Kazakhstan to Russia.

OAO INTER RAO UES published this content on 26 April 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 26 April 2017 06:49:19 UTC.

Original documenthttp://www.interrao.ru/en/press-center/news/detail.php?ID=7947

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