03.10.2012
The session of the Board of Director took place in presentia form in Saint Petersburg, some members participating in the session from Moscow by way of videoconference.The Board of Directors of IDGC of the North-West, JSC has approved of the corrected Business Plan (including the Investment Program) for 2012. The session of the Board of Director took place in presentia form in Saint Petersburg chaired by Executive Director of IDGC Holding, JSC, Andrey Murov, some members of the Board of Directors participating in the session from Moscow by way of videoconference. The correction of the Business Plan and the Investment Program of the Company was related to their being brought in compliance with tariff and balance decisions.
In accordance with the corrected Business Plan, in 2012 the revenue of IDGC of the North-West will make 31,104 mln RUR which is 2.9% lower as compared to 2012 Business Plan initial target but 0.8% in excess of 2011 actual performance. Revenue from provision of electric energy transmission services will account for 94.2% of the total volume. The Company’s revenue value has been effected by decrease of supply into the grid and the average tariff reduction.
Net profit following the outcome of 2012 is planned to amount to 13.3 mln RUR which is 36% below the previously adopted Business Plan target. EBITDA growth by 5%, up to 4,144 mln RUR, is conditioned by increase of proportion of depreciation allowances and profit tax within the indicator structure. The ratio of debt to EBITDA as of the end of 2012 is planned to be 2.76.
Reduction of revenue from electric energy transmission services is partly compensated for through prime cost reduction which enables maintenance of IDGC of the North-West financial and economic activities results at a breakeven level. The Company management is taking measures to improve financial and economic activities performance to the extent of tariff regulation and solution of the “last mile” problem.
The corrected 2012 Investment Program of IDGC of the North-West amounts to 6,674 mln RUR (+1.1% to the Investment Program previously approved of). Among the core facilities of IDGC North-West 2012 Investment Program there are 11 major projects (including 3 ones related to design and survey work for future construction) and 2 investment projects for generation power delivery, their share constituting 14% of the total capital investment volume. In 2012 one plans to provide for commissioning of 1,175.49 km of transmission lines and 416.37 MVA of transformer capacities.
