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Dec. 12 (Bloomberg) -- OAO RusHydro, Russia’s largest renewable energy producer, fell to a record low amid concern the company’s capital spending plan is too ambitious given government restrictions on electricity prices.
The company’s American depositary receipts sank 7.1 percent to settle $3.16 in New York, the biggest drop since Nov. 1 and the lowest closing price since the shares began trading in September 2010. The stock is down 47 percent this year.
Investors expected the company would cut its 350 billion- ruble ($11.1 billion) capital spending program for 2011 through 2013 in early December after the government pledged to keep electricity prices in check next year, said Irina Filatova, an analyst at Broker Credit Securities in Moscow.
“Investors are concerned that the company won’t do anything to actually cut the planned investments, while the government has pledged to keep electricity tariffs for households unchanged through July 1, 2012, and restrict increase in electricity prices on the country’s wholesale market,” Filatova said.
Elena Vishnyakova, head of the press office at RusHydro’s Moscow offices, said via telephone that no board meetings have been scheduled at which capital spending plans may be modified. The company is aware of investors’ calls to cut outlays, she said.
The Russian government owns a 58 percent stake in RusHydro.
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