PJSC “Rosseti” Board gathered for a session chaired by Director General Oleg Budargin in Moscow on March 21, 2017. The session focused on the company's results on increasing the efficiency of the company's activities and ensuring financial viability of PJSC “Rosseti” affiliates. The extended session involved top management of affiliated companies. In particular, the Board discussed reports on PJSC “Rosseti” affiliates’ Development Plans in progress and preliminary results of the feasibility study for 2016.
Development Plans of PJSC “Rosseti” affiliates including JSC “Yantarenergo”, PJSC “Kubanenergo”, PJSC “IDGC of Northern Caucasus”, JSC “Chechenenergo”, PJSC “IDGC of Siberia”, PJSC “IDGC of the South” and PJSC “IDGC of the Northwest” were approved by the Board of Directors on June 9, 2016.
The session highlighted well-coordinated work of all PJSC “Rosseti” units and affiliates in order to promote opportunities for the most of companies to achieve financial viability and profit indicators, to improve the debt level and perform obligations for technological connection, as well as ensure reliability and power grid development across Russian regions.
Based on the results of the activities of PJSC “Rosseti” affiliates’ grid sector in 2016 the company notes positive dynamics of key financial and economic indicators, i.e. power supply revenues amounted to 749.7 billion rubles which is 7.7 billion rubles more than expected; power supply net profit equaled19.5 billion rubles that exceeds estimates five times; debt/EBITDA made 2.1; investment program funding totaled 225.6 billion rubles.
Development plans proved to be highly effective. Thus, operating expenditures were reduced by 17.8% while investment expenses decreased by 22.5%.
The Board members noted that these achievements prove financial and economic sustainable development of the most PJSC “Rosseti” affiliates and associated companies which shall allow for existing economic problems to be resolved. The Rosseti Group jointly with the Russian government, Ministry of Energy and the heads of regions did their best to work out ultimate solution to reach higher level of financial viability. Major efforts were taken at Dedicated Committee sessions and Board of Directors meetings.
In addition, PJSC “Rosseti” Board made a decision to step up efforts aimed at amending Russian legally enforceable enactments to stabilize the financial and economic development of certain companies of PJSC “Rosseti”, as well as solving systematic problems of the power grid.