11 Jul 2012 07:00
11 July 2012
Agreement Signed for the Transfer of Holding MRSK's Executive Powers to Federal Grid Company
An agreement has been signed between IDGC Holding (Holding MRSK) and Federal Grid Company of Unified Energy System (Federal Grid Company) by which the powers of the sole executive body of Holding MRSK has been transferred to Federal Grid Company.
According to the agreement, Federal Grid Company, acting as the managing company, assumes the powers of the sole executive body of Holding MRSK.
The transfer of executive powers will enable a unified approach to implementing technical policies and management principles for Russia's electrical grid system and will support coordinated work on the effective development and modernization of the system through innovative and high-tech solutions. This arrangement will also allow for the implementation of unified investment, fiscal and personnel policies and help gradually to cut costs.
Establishing unified management standards will increase both the accountability and independence of subsidiaries and affiliated companies as well as establish a foundation for more efficient operations.
According to Oleg Budargin, Chairman of the Management Board of Federal Grid Company, collectively these measures will increase the reliability and economic efficiency of the Russian electricity sector as a whole, make the process of connecting customers to the network more transparent, and increase the investment attractiveness of both companies.
On 30 June 2012 the agreement was approved by the Board of Directors of Holding MRSK, and on 9 July 2012, it was approved by the Board of Directors of Federal Grid Company.
Enquiries:
Contacts | ||
Analysts / Investors | ||
Federal Grid IR team | Work | Mobile |
Alexander Duzhinov | +7 (495) 710 9064 | +7 (916) 041 8053 |
Nadezda Sukhova | +7 (495) 710 9541 | |
Egor Toropov | +7 (495) 710 9333 ext. 2275 | |
Vladimir Baklanov | +7 (495) 710 9333 ext. 2926 | |
International Media | ||
M:Communications | Work | Mobile |
Tom Blackwell | +7 (495) 363 2841 | +7 (919) 102 9064 |
Sam VanDerlip | +7 (495) 363 2845 | +7 (916) 306 6112 |
About Federal Grid Company
Federal Grid Company is the operator and manager of Russia's unified electricity transmission grid system, including high voltage transmission lines, and holds the status of a natural monopoly.
The Company's assets include over 124,000 km of transmission lines and 854 substations with over 322 GVA of 35-750 volt transformer capacity. Based on the length of transmission lines and installed transformer capacity, Federal Grid is the largest publicly traded electricity transmission company in the world.
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 in 73 regions of Russia, covering a territory of 13.6 million square kilometers. Its customers are regional distribution companies, electricity suppliers and large industrial enterprises.
Since 1 January 2010, Federal Grid has operated under a 5-year regulatory asset base (RAB) model.
The Company was incorporated in June 2002 as part of reorganization of Russia's electrical power industry. The largest shareholder, with a 79.55% stake, is the Russian Federation Government.
Federal Grid Company's ordinary shares are listed on the MICEX-RTS stock exchange under the ticker FEES and the Company's GDRs are traded on the London Stock Exchange under the same FEES symbol. The Company's shares are included in the MSCI Emerging Markets and MSCI Russia indices.
In 2011 the Company's IFRS revenue for 2011 was RUB 139,571 million (up 23% compared to 2010), adjusted EBITDA as RUB 83,760 million (a 24% increase from 2010), and adjusted net profit was RUB 38,241 million (up 37% on 2010).
Further information can be found atwww.federal-grid.com