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In Moscow on June 29, 2018, the Annual General Meeting of Shareholders of the Rosseti Company was held under the chairmanship of the Minister of Energy of the Russian Federation, the Chairman of the Board of Directors of Rosseti Alexander Novak.
At the meeting, the report was reviewed with results of activities of Rosseti in 2017, which indicates the growth of production indicators and the stable financial and economic position of the company.
The shareholders highly appreciated the work of the management to improve the efficiency of the Rosseti Company and its managed subsidiaries. It was particularly noted that despite the increase in the number of hazardous weather events in the past year and, as a result, the expansion of a range of potential threats to the stable operation of the power grid complex, employees of the subsidiaries managed by Rosseti achieved high production results. In particular, the SAIDI (System Average Interruption Duration Index) was 3.86 hours, that is it was improved by 19% compared to 2016, and the SAIFI (System Average Interruption Frequency Index) remained at a record low level of 1.53 technological violations per 1,000 conventional units of equipment. Losses in transmission and distribution of electricity were reduced to the target set for 2017.
Consolidated indicators calculated in accordance with the International Financial Reporting Standards reached their historic maximum in 2017.
Consolidated revenue of the group in 2017 was ₽948.3 billion, which is 5.3% more than in 2016. At the same time, net profit increased by almost 40% compared to the previous year and amounted to ₽137.1 billion.
EBITDA amounted to ₽313.7 billion, which is 18.3% higher than in 2016. The ratio of net debt to EBITDA decreased from 1.8 in 2016 to 1.5 in 2017.
In addition to the results of Rosseti, the AGM noted that in 2017 the company’s management developed a strategy for building a digital power grid complex in Russia until 2030, which provides for implementation of the most advanced technologies based on artificial intelligence.
As Pavel Livinskiy, Director General of the company, emphasized, the implementation of this strategy will allow to modernize the whole energy industry, to bring the efficiency of the entire group of companies to a new level, to increase the reliability of consumers’ power supply and investment attractiveness, and to provide additional guarantees for dividend payments to shareholders.
During the meeting, the annual report and the annual accounting (financial) statements for 2017, proposals for distribution of profits and losses of the Company following the results of 2017, dividend payments based on the results of 2017 and the first quarter of 2018 were submitted for approval to the shareholders of the Rosseti Company.
In addition, the shareholders elected new members of the Board of Directors, the Internal Audit Commission and the Company’s auditor.
The Articles of Association and a number of internal documents regulating the activities of the management and control bodies were reviewed in a new edition.