RusHydro 2Q 20 - Results beat expectations propped up by hydro
RusHydro has reported strong yoy 2Q 20 results with EBITDA supported by higher hydropower generation (up by over 30% yoy), the launch of Zaramagskaya HPP-1 in February 2020 contributing RUB 10 bn in EBITDA per annum, and likely the remaining higher yoy electricity demand in the Far East from gold miners as we saw in 1Q. In general, the EBITDA yoy growth has beat both our and consensus estimates, with the positive effect translating into bottom line growth as well. FCF was temporarily supported by temporarily lower yoy capex, yet we disregard that as we expect a capex acceleration in 2H with FY20e capex to reach > RUB 90 bn, with FCF in the red or close to zero. Overall we treat the results as positive yet we still expect DY for 20e not higher than 5-6% (6% in the best case on par with the Russian average).PJSC RusHydro is a hydro-generating company based in Russia. Co. is engaged in the generation and sale of electricity and capacity on the Russian wholesale and retail markets, as well as generation and sale of heat energy. The main activity of Co. is production of power from renewable energy sources, developing power generation using water flows, tidal, wind and geothermal energy. It has an installed electricity generation capacity of 38.5 GW; and heat capacity of 16.2 GCal/h.
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