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Unipro is a generating company that owns large thermal power plants in several regions of Russia. Unlike the territorial generating companies, it is barely involved in heat supply and sells above all electricity and capacity. Its shares trade on the Moscow Exchange under the ticker UPRO.
Income comes from two parts. The first is the sale of generated electricity on the wholesale market at the market price. The second, and the more predictable one, is the capacity payment: money for a plant's readiness to deliver load, even if it is not running at the moment.
For new and modernised units the state guarantees a higher capacity payment for years ahead — the mechanism was designed so that investment in construction pays off. It is precisely these contracts that make a generating company's revenue plannable a decade out.
The cost side is determined by fuel, above all gas and coal, and by repairs. A major accident at a unit hits the company twice: output is lost and the capacity payment for that unit stops.
Sale of output on the wholesale market at market prices.
Income for the plants' readiness to deliver load, including higher rates for modernised units.
Strengths and weaknesses describe the business itself. Opportunities and threats describe what may happen around it.
It generates electricity at thermal power plants and sells it together with capacity on the wholesale market. Unlike the territorial generating companies, it is practically not involved in supplying heat to cities.
It is a payment for a plant's readiness to deliver load when it is needed, regardless of whether it is running right now. It makes a generator's income predictable and independent of current utilisation.
Because two sources of income are lost at once: electricity output drops out and the capacity payment for that unit stops. On top of that come the costs of restoration.