BBA: EXPENSES OF RUSHYDRO WILL INCREASE
•The accident at the Sayano-Shushenskaya HPP occurred on 17 August 2009. At the time of the accident, 9 of the power station’s hydro-aggregates were in operation. The aggregate active capacity of the operating hydro-units was 4400 MW. Search and rescue operations at the power station are now finished and restoration work is under way. As of today, the Company has fulfilled all its obligations to make lump-sum payments to the families of the deceased in the amount of 110 million rubles. Within the scope of providing social support to the families of deceased employees and the injured, RusHydro has allocated funds to purchase 16 apartments and the procedure for carrying out these transactions was initiated immediately. The list of apartments already acquired now totals 19, which have cost 27 million rubles to date.
•The expenses are likely to be even higher in order to prevent social conflict, which may be quite possible because of accident, taking into account RusHydro’s expanding. The Company is likely to increase expenses on safety and as a result, net profit margins will decrease in long-term. On the other hand, we expect the sales to grow rapidly in the nearest three years and we also expect the revenues to cause net profit growth. In general, the accident at the Sayano-Shushenskaya HPP will have no negative influence on Company’s long-term growth chances.
Read more in following report:
RusHydro (HYDR), Comment on HYDR`s Latest Events, Forecast on Growth and Risk 11/03/09
•The accident at the Sayano-Shushenskaya HPP occurred on 17 August 2009. At the time of the accident, 9 of the power station’s hydro-aggregates were in operation. The aggregate active capacity of the operating hydro-units was 4400 MW. Search and rescue operations at the power station are now finished and restoration work is under way. As of today, the Company has fulfilled all its obligations to make lump-sum payments to the families of the deceased in the amount of 110 million rubles. Within the scope of providing social support to the families of deceased employees and the injured, RusHydro has allocated funds to purchase 16 apartments and the procedure for carrying out these transactions was initiated immediately. The list of apartments already acquired now totals 19, which have cost 27 million rubles to date.
•The expenses are likely to be even higher in order to prevent social conflict, which may be quite possible because of accident, taking into account RusHydro’s expanding. The Company is likely to increase expenses on safety and as a result, net profit margins will decrease in long-term. On the other hand, we expect the sales to grow rapidly in the nearest three years and we also expect the revenues to cause net profit growth. In general, the accident at the Sayano-Shushenskaya HPP will have no negative influence on Company’s long-term growth chances.
Read more in following report:
RusHydro (HYDR), Comment on HYDR`s Latest Events, Forecast on Growth and Risk 11/03/09
