Message of Chairman of Samruk-Energy JSC Board of Directors
Chairman of Board of Directors of
For Samruk-Energy JSC the Year 2013 has become a phase of dynamic development; the secure basis for establishment of competitive electric power holding of Eurasian importance has been laid. The Company has fulfilled the tasks assigned by the Shareholder and reached key performance indicators specified in Development Plan.
Company’s net profit made 40.85 billion tenge which is twice more than in 2012. Steady growth of financial results and operational indicators of Samruk-Energy JSC is confirmed by the effectiveness of union of delinked assets of the state on production, distribution and sale of power energy, coal mining.
The holding has included EK REC JSC, Shygysenergytrade LLP. At the end of 2013 the agreement on purchase of 50% of Ekibastuz SDPS-1 LLP shares from Kazakhmys group has been concluded, as well as, purchase of 100% shares in charter capital of Kazhydrotechenergo LLP. In case of closing the deal with value of 1.3 billion USD Samruk-Energy JSC will become 100% shareholder of the biggest plant of the national importance. Available output of Ekibastuz SDPS-1 after completion of modernization program will be increased by 25% up to 4 000 MW. It increases the value and investment attraction of Samruk-Energy JSC within the framework of planned participation of the company in the National IPO program.
Increasing of assets in generation sector corresponds with targets of Long-term Development Strategy of Samruk-Energy JSC and Innovation and technology strategy up to 2022 approved in 2013 by Resolution of the Board of Directors.
Priority directions of the given document, which is being actively implemented, are to ensure energy safety of Kazakhstan, increase of equity capital cost and social responsibility. In perspective, we see Samruk-Energy JSC as a competitive energy holding of Eurasian importance.
This status will allow the company to ensure interests of the state in this sector through advanced practices, including at purchase and construction of power plants of the national importance, coal deposits, establishing of socially responsible rates, and interstate trade of power energy.
Issues of sustainable development, involvement of renewable energy sources into power balance are priorities set within the Strategic targets of the company. By results of the year, Samruk-Energy JSC has finished the project of construction and start-up of Kapshagay solar power plant with capacity 2 MW, which is the first in Kazakhstan. In 2014 it is planned to commission Ereymentau wind power plant (WPP) with capacity 45 MW and with perspective of expansion, which will be the main object of energy supply for the international exhibition Astana EXPO-2017. Our report on sustainable development has been integrated into this annual report reflecting our adherence to long-term stable growth in accordance with the concepts of UN Global Compact.
The Company pays specific attention to improvement of corporate management in accordance with best world practices.
Currently energy power sector faces new challenges that require improvement of the legislative and regulatory bases, determination of more effective market model. In this regard, Samruk-Energy JSC jointly with KAZENERGY Association, as per instruction of the Government, took part in development of RK Energy Sector Development Conception up to 2030 within the framework of FEC Development Strategy. This document should become fundamental in area of implementation of activities of energy entities and ensure implementation of the state targets as to energy sector development.
In 2014 in the FEC Development Conception up to 2030, Samruk-Energy JSC jointly with business community and the state authorities shall define principal approaches on most efficient energy and capacity market model in Kazakhstan, tariff regulation for generating stations and distributing networks. All these measures will assist in attraction of investments and new technologies in power energy sector, where Samruk-Energy JSC now plays the key role as to generation, distribution of energy and coal mining.
In October 2013 pursuant to resolution of the shareholder, the Board of Directors was expanded, and we are glad to welcome our independent director Rupert Andrew Woodward Goodman. More detailed information on the work of the Board of Directors and committees you can read in «Corporate management» section of this Report.