RusHydro Company History and Development

RusHydro has its roots in the early 20th century, when the Soviet government established the first hydroelectric power stations in the country.

In 1927, the Soviet government merged several hydroelectric power stations to form the Moscow Hydroelectric Power Station Trust, which would eventually become the foundation of RusHydro.

The trust was responsible for managing and operating several hydroelectric power stations, including the Volga Hydroelectric Station, which was the largest in the world at the time.

RusHydro's growth and development continued during the Soviet era, with the company expanding its operations to include the construction of new hydroelectric power stations and the modernization of existing ones.

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RusHydro's history began in 2004 when it was established as a 100% subsidiary of RAO UES of Russia under the name OJSC "Federal Hydrogenation Company" (HydroOGK).

The state registration of the company took place on December 26, 2004. Vyacheslav Sinyugin was appointed Chairman of the Board of HydroOGK and led the company until May 2008.

RusHydro's financial stability has improved over the years, with a significant reduction in debt burden in 2017.

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In 2004, HydroOGK was founded as a subsidiary of RAO UES of Russia.

The company was established under the name OJSC "Federal Hydrogenation Company" (HydroOGK) in December 2004, with Anatoly Chubais signing the order as chairman of the board of RAO UES.

The state registration of HydroOGK took place on December 26, 2004, marking the official beginning of the company.

Vyacheslav Sinyugin, Managing Director of the Hydrogeneration Business Unit of RAO UES, was appointed Chairman of the Board of HydroOGK, a position he held until May 2008.

He also led the board of directors until December 2008, providing continuity and stability during his tenure.

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In 2007, the Board of Directors of RAO UES approved the HydroOGK Accelerated Reorganization Scheme.

The scheme involved connecting subsidiary hydroelectric power plants in two stages, which was a crucial step towards forming a single HydroOGK.

HydroOGK was preparing for the reorganization, including registering additional shares of the company and approving conversion coefficients of HPP shares into shares of the single company.

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By this time, HydroOGK's share capital was increasing through the placement of additional shares, which were paid for in hydroelectric assets.

The target model of HydroOGK was approved, which included the accession of 22 subsidiary hydroelectric power stations to the parent company and the transition to a single share.

The state's share in HydroOGK (which would later become RusHydro) was to remain above 51%.

In August 2009, a serious accident occurred at the Sayano-Shushenskaya hydroelectric power station owned by RusHydro.

The accident became one of the largest man-made disasters of the last 25 years, causing significant damage to the company.

According to preliminary calculations, the damage caused by the accident is estimated at 1.5 billion rubles per month.

The restoration of the station will require over 40 billion rubles and about 4 years.

Vasily Zubakin, the acting chairman of the board of RusHydro since July 2008, was found to be one of the culprits of the tragedy.

As a result of the accident, the board of the company was headed by the chairman of the board of Inter RAO, Evgeny Dod, in November 2009.

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RusHydro Group saw a 3.7% increase in EBITDA in 2017.

This growth is a significant achievement, and it's interesting to note that the Group's total revenue in 2017 was 380.9 billion rubles.

The decrease in revenue of 2.7% was mainly due to the sale of Bashkortostan Energy Sales Company LLC at the end of 2016.

However, excluding the impact of the results of OOO ESKB on the Group's revenue in 2016, the year-on-year growth of the comparable indicator was 5.4%.

This growth was influenced by an increase in revenue from the sale of capacity as a result of the commissioning of the Zelenchukskaya HPP-PSPP.

A favorable price situation in the wholesale electricity and capacity market also contributed to the revenue growth.

Additionally, an increase in revenues from electricity transmission in the Far East played a role in the revenue growth.

RusHydro Group's operating profit increased by 1.9% from 75.6 billion rubles to 77.1 billion rubles.

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This increase in operating profit is a testament to the Group's ability to manage its operations effectively.

The net profit of RusHydro Group in 2017 was 22.5 billion rubles, which is a significant decrease of 43.5% compared to 2016.

However, the net profit adjusted for non-cash items of the Group for 2017 amounted to 62.7 billion rubles, which is generally comparable to the same indicator for 2016.

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RusHydro has a clear vision for expansion and development, with a long-term strategy to increase the company's value. The goal is to boost EBITDA from 17 billion rubles in 2007 to 80 billion rubles by 2020.

The company aims to grow its total installed capacity of hydroelectric power plants and renewable energy sources from 25 GW to 46 GW, which will significantly increase electricity generation from 78 billion kWh to 130-140 billion kWh.

RusHydro also plans to update its main fund and reduce equipment wear from 35% to 19%, ensuring that its infrastructure is well-maintained and efficient.

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In 2016, RusHydro launched a centralized procurement management system to improve transparency and reduce costs. This system aimed to increase the share of electronic purchases by at least 30% compared to 2015.

The new system also aimed to reduce the share of purchases from a single source by 20% and strengthen control over purchases made by branches and subsidiaries. RusHydro planned to consolidate the same type of purchases to achieve an additional economic effect.

The centralized procurement system will be managed by a specialized subsidiary, RusHydro, which will become the single center for procurement management. This approach has been successfully used by many infrastructure companies.

The creation of this subsidiary will optimize document management and reduce the number of personnel in the regions. It will also increase the transparency of procurement management and the degree of centralization.

RusHydro began optimizing its main areas of activity in 2015, with a focus on increasing efficiency across the company. The goal was to reduce operating costs and improve management.

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RusHydro's 2020 development strategy aims to increase the company's value by boosting its EBITDA from 17 billion rubles in 2007 to 80 billion rubles. This ambitious goal is expected to be achieved through a series of strategic projects.

The company plans to increase its total installed capacity from 25 GW to 46 GW by 2020. This significant expansion will enable RusHydro to generate more electricity, with an expected increase from 78 billion kWh to 130-140 billion kWh.

One of the key components of the development strategy is updating the main fund and reducing equipment wear from 35% to 19%. This will help the company to reduce maintenance costs and improve efficiency.

The company is also focusing on developing renewable energy sources, including sea tides, wind, and geothermal energy.

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In December 2010, RusHydro made a significant move by acquiring a 25% stake in the Krasnoyarsk hydroelectric power station.

The company exchanged 4.5% of its shares for the stake, marking the first time it had purchased a generating asset from a private investor.

This deal was a major step towards consolidating hydropower assets in Siberia and the Far East.

RusHydro described it as the first stage of a larger plan to consolidate its assets in the region.

The Krasnoyarsk HPP is the second-largest hydroelectric power station in Russia, after the Sayano-Shushenskaya HPP.

Oleg Deripaska's EuroSibEnergo controls 68.29% of KrasHPP, highlighting the significant influence of private investors in the energy sector.

RusHydro's plans include attracting strategic investors, with Chinese companies being considered as key partners.

RusHydro has seen a decline in power output, with a 2.9% decrease year-over-year for the January-September period.

In an effort to make power firms invest more, a Russian draft law would limit their dividend payments.

RusHydro's H1 net profit was $391 million, according to their report.

Here are the key dates for RusHydro's recent earnings reports:

RusHydro's Q1 net profit was $240 million, but their Q1 power generation fell 5.5% year-over-year.

RusHydro's 2024 net loss was $706.7 million.

RusHydro may suspend dividend payments until 2028, according to a report by Kommersant.

RusHydro launched the construction of the Artemovskaya ChPP-2, as announced in their press release.

RusHydro published a notice to the holders of RUB 20,000,000,000 8.125% Loan Participation Notes due 2022.

RusHydro is a major player in the energy industry, with a significant presence in the Russian market. The company operates 47 hydroelectric power plants, including the Sayano-Shushenskaya Power Plant, which is one of the largest in the world.

RusHydro's operations are focused on hydroelectric power generation, with a total installed capacity of 43.6 GW. This makes up a significant portion of Russia's total electricity generation.

The company's hydroelectric power plants are spread across 10 federal districts in Russia, with the majority located in Siberia and the Far East.

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PJSC RusHydro's Board of Directors is a group of experienced individuals who oversee the company's operations. The board is composed of 10 members, each with their own unique background and expertise.

Vyacheslav Pivovarov, a 53-year-old Director/Board Member, has been part of the board since April 18, 2013. Maxim Sergeevich Bystrov, a 61-year-old Director/Board Member, joined the board on June 27, 2013.

Andrey Shishkin, a 66-year-old Director/Board Member, has been with the company since December 31, 2013. Yuriy Trutnev, the Chairman, is a 69-year-old who took on the role on June 30, 2015.

Artem Davidovich Avetisyan, a 49-year-old Director/Board Member, joined the board on June 25, 2015. Nikolay Shulginov, a 74-year-old Director/Board Member, has been part of the board since June 26, 2016.

Aleksey Chekunkov, a 45-year-old Director/Board Member, is the youngest member of the board. Nikolay Dmitrievich Rogalev, a 63-year-old Director/Board Member, also joined the board on June 26, 2016.

Viktor Khmarin, a 47-year-old Director/Board Member, took on the role on June 29, 2021. Mikhail Viktorovich Voevodin, a 50-year-old Director/Board Member, has been with the company since April 1, 2018.

Here are the board members with their titles and ages:

Hydro & Tidal Power is a rapidly growing sector, with companies like FEDERAL HYDRO-GENERATING COMPANY - RUSHYDRO and CHINA YANGTZE POWER CO., LTD. leading the way. They've seen significant growth, with Rushydro's capitalization reaching 4.4B and China Yangtze Power's reaching 96.99B.

These companies are not only large but also highly profitable, with Rushydro's 5-day change being +0.75% and China Yangtze Power's 1-year change being +25.97%. This is a testament to the potential of hydroelectric and tidal power.

Here are some key statistics from the sector:

These companies are not only growing in size but also in profitability, with the weighted average of their 5-day change being +1.02%.

RusHydro is one of the largest hydroelectric power generators in the world, with a significant presence in the Russian energy market.

The company operates in the renewable energy sector, which is a key area of focus for the Russian government.

RusHydro's portfolio includes a diverse range of hydroelectric power plants, with a total installed capacity of over 46 GW.

The company's largest power plant, Bratsk, has an installed capacity of 4.5 GW and is one of the largest hydroelectric power plants in the world.

RusHydro's operations are spread across the Russian Federation, with a presence in 11 regions.

The company's power plants have a total annual electricity generation capacity of over 120 billion kWh.