29 Jun 2015 10:15
Federal Grid Company Announces 2015 AGM Results
29 June 2014, Moscow - Federal Grid Company of Unified Energy System ("Federal Grid Company" or "the Company") (Moscow Exchange, LSE: FEES), part of the Russian Grids Group of companies and operator of Russia's Unified National Energy Grid ("UNEG"), announces the results of its Annual General Shareholders Meeting (AGM) held on Friday, 26 June 2015 in Moscow.
Shareholders approved a new edition of the Company's Charter, a number of internal corporate documents and the distribution of profits (including dividend payments) based on the results of 2014. In addition, new members were elected to the Board of Directors and the Audit Commission, and Company's auditor was appointed. The AGM decided to pay dividends for the year totalling RUB 847,383,000 (RUB 0.0006647883 per one ordinary share).
Commenting on the results of the meeting, Federal Grid Company's Chairman of the Board Andrey Murov said: "The Company achieved all its operational and financial performance targets for 2014. We brought into operation 9.5 thousand MWA of transformer capacity and over 3,000 kilometres of power lines. We implemented a power distribution scheme for generation facilities with 4.7 thousand MW capacity, brought on stream an electricity grid ring in St. Petersburg, facilitated power to the Vostok cosmodrome, completed a number of projects for the oil and gas industry and much more".
Federal Grid Company's client base increased by 43% to 417 in 2014, primarily due to new direct consumers.
For the second year in a row, the Company has focussed on improving internal efficiency while maintaining the reliability and quality of services at a high level. This resulted in a significant reduction pof variable operational costs and investment expenses (by 21.7% and 17%, respectively, compared to 2012) allowing the Company to report its first net profit in four years.
Compared to 2013, the procurement costs were reduced by 10-25%, while expenses for work performed by third-party repair and maintenance contractors were reduced by 28%. Building and office rental costs decreased by 25%.
"Benchmarked against its peers, Federal Grid Company is a global leader in reliability of electricity distribution. Going forward, our task is to reap long-term effects from the planned activities of the coming years. For that reason, we set the bar higher than what is required of us", Murov said.
Shareholders elected the following members to the Board of Federal Grid Company: Oleg Budargin, Maxim Bystrov, Pavel Grachev, Andrei Demin Boris Kovalchuk, Mikhail Kolesnikov, Vyacheslav Kravchenko, Andrey Murov, Sergei Shmatko, Nikolai Shulginov and Sergey Mironosetsky.
A new Audit Commission was also elected, composed of the following members: Nikolai Varlamov, Marat Izmailov, Denise Kant Mandal, Marina Lelekova and Roman Litvinov.
The AGM appointed LLC RSM RUS as Federal Grid Company's auditor.
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International Media enquiries Sam Vanderlip Tom Kiehn
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Company profile
Federal Grid Company is part of OJSC Russian Grids is the operator and manager of Russia's unified electricity transmission grid system. The company operates over 138.8 thousand km of transmission lines and has over 332.1 MVA of installed transformer capacity.
Federal Grid's business is to provide electricity transmission and technological connection services.It maintains and develops the grid system and supervises grid facilities and infrastructure in77 regions of Russia, covering a territory of 15.09 million square kilometres. Its customers are regional distribution companies, electricity suppliers and large industrial enterprises. The Company is a natural monopoly with 80.13% stake controlled by Russian Grids.
Federal Grid Company was incorporated in June 2002 as part of reorganisation of Russia's power sector.
In 2014 the Company's IFRS consolidated revenue was RUB 173,353 million, while adjusted EBITDA was RUB 107,685 million, and adjusted profit for the period was RUB 40,848 million.
Ordinary shares of Federal Grid Company are included in the MICEX quotation list under FEES ticker; Company's GDRs are quoted at the London Stock Exchange under the same ticker.
For further info, please visit www.federal-grid.com. For further info about Russian Grids JSC, please visit www.rugrids.ru