RSHYY RusHydro PJSC (PK)

RusHydro increased electricity generation by 15%, generation from hydro - by 23% in January-September of 2013

JSC RusHydro announces its operating results for the 3rd quarter and the 9 months of 2013.

Key highlights:

-       Total electricity generation by power plants of RusHydro Group in 3Q 2013 amounted to 28.4 TWh (+18%), for the 9 months ? 93,4 TWh (+15%);

-       In 3Q 2013, total hydro production amounted to 23 TWh (+26%); for 9M of 2013 ? 71.4 TWh (+23%);

-       Low water inflow to reservoirs of the Volga-Kama cascade and decrease in generation in 3Q 2013 was offset by increase in generation in Siberia and South of Russia;

-       In 4Q 2013, water inflows to reservoirs of the Volga-Kama cascade are expected slightly higher than long-run average levels, in Siberia ? substantially higher.

In the 3rd quarter of 2013, total electricity generation by power plants of RusHydro amounted to 28,407 GWh, an 18% increase as compared to the 3rd quarter of 2012; total power generation in the 9 months of 2013 amounted to 93,418 GWh (+15%). In the 3rd quarter of 2013, hydropower plants of RusHydro Group increased electricity generation by 26% to 22,952 GWh, generation in the 9 months of 2013 amounted to 71,409 GWh (+23%).

Electricity generation in 3Q and 9M 2012/2013, GWh

The underlying factors of the production change in the 3rd quarter of 2013 were:

-       water to reservoirs of the Volga-Kama cascade lower than long-run average;

-       water inflow to major reservoirs of Siberia higher than long-run average;

-       substitution of thermal generation in the Far East of Russia by higher hydro output.

Center of Russia

As of the end of the 3rd quarter of 2013, the useful storage of the Volgo-Kama cascade reservoirs amounted to 61.5 km3, a 7% higher than long-run average and 4% lower than last year.

[1] The Boguchanskaya hydropower plant is part of the Boguchanskiy Energy and Metals Complex (BEMO), a 50/50 joint venture (JV) between RusHydro and UC RUSAL, and is not part of RusHydro Group. According to RusHydro?s shareholding in the JV (50%), the results of the plant are reported in the official financial statements in ?Share of results of associates and jointly controlled entities?. Operations of the HPP have been put into the press-release for general reference.

In the 1st quarter of 2013, total water inflow to reservoirs of the Volga-Kama cascade amounted to 29 km3 as compared to the average of 21.3 km3. In the 2nd quarter, water inflow to reservoirs of the cascade was higher than normal and amounted to 173 km3 compared to a long-run average of 161 km3.

In the 3rd quarter hydrologic conditions in the Center of Russia has changed as compared to the 1st half of the year. Water inflow to the major reservoirs of the Volgo-Kama cascade was 15-65% lower than normal. Water inflow to the Kuybyshevskoe reservoir was close to normal, and water inflow to the Cheboksarskoe reservoir was 40% higher than normal. Total water inflow to reservoirs of the Volgo-Kama cascade in the 3rd quarter amounted to 32.7 km3 as compared to the average of 37 km3.

Total electricity generation by RusHydro?s hydropower plants of the Volgo-Kama cascade together with Zagorskaya pumped storage plant in the 3rd quarter of 2013 amounted to 8,419 GWh, a 2% decrease as compared to the same period of 2012. In January-September 2013 generation reached 32,690 GWh, a 16% increase as compared to the same period of the previous year. 

In the 4th quarter, water inflow to the major reservoirs of the Volgo-Kama cascade is expected to be close or slightly higher than normal and may amount to 36-44 km3 as compared to the average of 36.6 km3.

South of Russia and North Caucasus

Water inflow in South of Russia and North Caucasus in the 3rd quarter of 2013, as well as in the 2nd quarter was lower than the long-run average. In September water inflow in the Kuban? and Sulak rivers was 10-40% higher than normal, which enabled to achieve the long-run average volumes of electricity generation.

The electricity generation by the hydropower plants of the South of Russia and North Caucasus in the 3rd quarter of 2013 rose by 31% to 2,766 GWh; in the 9 months of 2013 ? by 25% to 6,556 GWh.

In the 4th quarter water inflow to the Krasnodarskoe reservoir is expected to be 15-25% higher than normal; water inflow to the Vladikavkazskaya and Chirkeyskaya HPPs ? close to normal.

Siberia

In the 3rd quarter of 2013, water inflow to the Sayano-Shushenskaya hydropower plant reservoir was 10% higher than long-run average. As of the end of the 3rd quarter, the reservoir level was 538 m, which is slightly below normal water level of 539 m.

In the 3rd quarter of 2013, water inflow to the Novosibirsky reservoir was 35% higher than long-run average. As of the end of the 3rd quarter, the reservoir reached its full level of 113.5 m.

Until August 24 Boguchanskaya hydropower plant has been operating in the regime of maintaining the reservoir water level at 188.5 m, after that the power plant could continue accumulation of water in the reservoir, but allowing the navigation on the Angara River.

Total electricity generation by RusHydro?s Siberian hydropower plants in the 3rd quarter of 2013 increased by 102% to 7,866 GWh, in January-September 2013 ? by 38% to 20,416 GWh. The Boguchanskaya HPP in the 3rd quarter generated 1,623 GWh, in January-September 2013 ? 3,246 GWh.

In the 4th quarter water inflow to the Sayano-Shushenskaya and Novosibirskaya HPPs reservoirs is expected to be higher than normal and higher than last year.

Far East

In the 3rd quarter of 2013, hydropower plants of the Far East of Russia were operating under conditions of one of the strongest and most prolonged floods in the entire history of hydrological observations. In July-August, water inflow to the reservoirs of the hydropower plants exceeded the historical peak. Water inflow to the Kolymskiy and Zeyskiy reservoirs was 2.2 higher than normal, water inflow to the Zeyskaya HPP reservoir was the highest in its history ? 235% of the long-run average. The flood conditions remained during the whole quarter. The condition of the equipment and buildings was under tightened control. The Zeyskaya and Bureyskaya HPPs retained about two thirds of the water inflow volume in their reservoirs in the period of peak water inflow caused by abnormal flood. During the flood period starting in early July the water inflow to the Zeyskoe reservoir amounted to 22.7 km3 which is close to the annual long-run average flow rate (24.5 km3).

In order to avoid water discharge during winter period as well as provide for safety during the spring flood period in 2014 the Zeyskaya and Bureyskaya HPPs were commissioned by the regulator to start drawdown releasing water through spillways on August 1 and 14 respectively.

The total electricity generated by hydro and geothermal power plants of the Far East in the 3rd quarter increased by 13% to 3,844 GWh, in January-September 2013 ? by 20% to 11,640 GWh.

In the 3rd quarter of 2013, the predominantly fossil fuel generation of RAO ES of the East, a subsidiary of RusHydro, produced 5,342 GWh of electricity, an 8% decrease as compared to the 3rd quarter of 2012. In January-September 2013, the generation decreased by 5% to 21,674 GWh.

The decrease in electricity generation by the plants of RAO ES of the East was mainly caused by substitution of electricity generation from thermal plants in the unified energy system of the Far East by electricity generation from hydro. At the same time the electricity generation by companies operating in isolated energy systems for the 9 months of 2013 remained in line with the previous year and slightly increased in the 3rd quarter.

In January-September 2013, heat output by thermal plants of RAO ES of the East amounted to 21,181.6 GCal, a 0.8% increase as compared to the same period of last year.

Armenia

In the 3rd quarter of 2013, electricity generation by the Sevan-Hrazdan cascade of hydropower plants in Armenia decreased by 32% to 169 GWh, in January-September 2013 ? by 25% to 442 GWh. The power generation by the plants of the cascade is dependent on water inflows of Hrazdan river and water releases from lake Sevan.

Power retail

In the 3rd quarter of 2013, total electricity output by RusHydro?s four retail companies, operating in Bashkiria, Chuvashia, Ryazan and Krasnoyarsk regions, decreased by 16% to 7,515 GWh, in January-September 2013 ? by 11% to 28,390 GWh. Krasnoyarskenergosbyt and Chuvashskaya energy retail company slightly increased their electricity output in 2013 as compared to 2012.

Bashkiria and Ryazan power retail companies decreased their output after several major industrial consumers switched to their own wholesale purchases following market liberalization. 

***

RusHydro Group operating results for the 3rd quarter and the 9 months of 2013 are available on RusHydro?s website at: http://www.eng.rushydro.ru/investors/reports/

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 36.5 GW, heat capacity ? 16.2 thousand GCal/h.

Russian Federation owns 65.9% in RusHydro, the rest is held by other institutional and individual shareholders (over 360,000). The company?s stock is traded on the MICEX and RTS stock exchanges, and included in MSCI EM ? MSCI Russia indexes. Company?s GDRs in the IOB section of LSE, ADRs ? in OTCQX.

For more information:

JSC RusHydro, Investor Relations Department

Tel. +7 (495) 225-3232 ext. 1319, 1607

ir@rushydro.ru

DISCLAIMER

The information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of RusHydro. One 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 and rapid technological and market changes in our industries, as well as many other risks specifically related to RusHydro and its operation

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