OREANDA-NEWS. February 12, 2010. Although fairly impressive, the voiced financial targets and production results were expected on the market. Further growth in the genco’s financial indicators is likely to be capped by existing long-term contracts.

Krasnoyarsk hydroelectric power plant (RTS: KRSG) targets IFRS FY 2009 revenue of RUB 5.6 billion. In 2008, the genco raised RUB 2.1 billion in IFRS revenue. Electricity generation at the genco increased 43% y-o-y in 2009 to over 23.2 billion kilowatt-hours.

The targeted 2.7x revenue growth in 2009 is attributed to an increase in productive electricity supply and the positive effects of Krasnoyarsk HPP’s entry into the wholesale electricity and capacity market in 2009. The impressive growth in electricity generation is linked to high water levels in rivers and the increased load on the plant’s capacity as a result of the accident at the Sayano-Shushenskaya HPP. On August 17, when the accident occurred, the load on the Krasnoyarsk HPP was increased from 2,450 MW to 3,932 MW. In our view, the data published was largely expected by the market. Further growth in the genco’s financial indicators is likely to be capped by current long-term contracts for electricity supplies to RusAl plants, to which the plant sells roughly 70% of its electricity output.