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Based on the results of the publication of the audited consolidated financial statements for 12 months of 2019 under IFRS, the management of IDGC of Centre, PJSC (hereinafter referred to as Rosseti Centre) - managing organization of IDGC of Centre and Volga Region, PJSC (hereinafter referred to as Rosseti Centre and Volga Region) held a conference call with representatives of the investment community to webcast a presentation dedicated to the performance results of Rosseti Centre and Rosseti Centre and Volga Region for 12 months of 2019. Rosseti Centre at the event was represented by Deputy General Director for Economy and Finance Artem Aleshin and Head of IR Division Sergey Ternikov. The main topics for discussion were data of consolidated financial statements under IFRS for 2019, production indicators of the completed year, as well as prospects and guidance of the Companies for 2020.
During the event, Artem Aleshin noted that the Companies are working towards ensuring reliable and high-quality energy supply to consumers, which is confirmed by a steady trend towards a decrease in the specific failure rate and the total number of technological violations. The main reasons for the decline in the volume of electricity transmission services were given, which were the climate factor, increased energy efficiency by consumers and the transition of several large consumers to other power supply circuits. At the same time, the Companies continue their focused work to increase the efficiency of operational activities, special attention is paid to reducing the level of electricity losses in grids and increasing labour productivity. As part of the activity on grid connection, there was a tendency to reduce the share of preferential categories of consumers, however, they still make up the majority of applications for grid connection. For both Companies, a special emphasis was placed on the development of additional, non-tariff services, which certainly confirms the strategic priorities for diversifying revenue sources. A significant effect on the financial results of the Companies was put by the creation of reserves for litigation with sales companies that accumulated over the past few years, however, there is a positive result in this direction: at the moment, reliable and high-quality interaction has been established, which made it possible not to record any disagreements. Work continued to reduce the effective borrowing rate through the use of optimal tools to attract borrowed capital. All this as a whole confirms that the management uses all available potential to improve the financial result and profitability of the Companies.
Artem Aleshin also commented on the Business Plan approved by the Companies for 2020, noting that against the backdrop of the current rapidly changing social and economic situation in the country and the world, daily monitoring of the implementation of planned indicators is carried out. At the same time, a set of anti-crisis measures is being developed aimed at maintaining financial stability and the availability of uninterrupted customer service. It is likely that the indicators of the Business Plan will need adjustment, but more accurate information on this issue will appear after an objective analysis of economic trends and customers’ expectations.
A special emphasis in the presentations was made on the results of the implementation of the first stage of the Digital Transformation Program, which is a strategic priority for the entire Rosseti’s Group of Companies. In 2019, a powerful start to the Program was ensured and, according to the results of which, it was possible to complete several large projects ahead of schedule. Each of the projects is part of the target infrastructure, which will provide increased efficiency, quality of services and their availability.
At the end of the event, Artem Aleshin thanked the participants for their attention and expressed the hope that the Companies will not disappoint the investment community in the near future.
The presentation of Rosseti Centre (only in Russian) is available on the link.
The presentation of Rosseti Centre and Volga Region (only in Russian) is available on the link.