Dear Shareholders,
TGC-1 is today one of the largest power-generating companies in Russia with unique production capacities.
The year 2009 confirmed that the combination of thermal and hydro-power generation with timely well-managed decisions allows to achieve good production and financial results. At a time when the total amount of energy used in Russia is declining, TGC-1 has maintained the generation volume of its electric power stations at the level of the previous year – about 27 billion kilowatt-hours, and heat supply increased by 2.2 per cent to 26.9 mn GCal.
The Company's revenues grew by 23% to more than 38 bn roubles, and net profit reached 3.36 bn roubles.
The Company's main goal is the implementation of the large-scale investment program. Two new hydro generating units were put into operation at Volkhovskaya and Svetogorskaya HPPs. Another new unit at Lesogorskaya HPP was built, tested and commissioned in January 2010. Two new turbines were also put into operation at Vasileostrovskaya and Vyborgskaya CHPPs. In 2009, TGC-1 increased its electric capacity by 200 MW through commissioning of new facilities.
Newly-installed energy-efficient equipment of the Company’s power plants greatly improves production performance and conforms the highest eco-standards, while reinforcing the reliability of the power system in Russia as a whole.
Introduction of energy-saving technologies and creation of conditions for the development and application of technologies based on the rational use of energy are the Company's priority development areas. We have successfully solved the challenges of optimizing equipment operation mode, achieving fuel economy and reducing the cost of electricity for our own needs and implementing modernization projects and retrofit of facilities of the power system.
In 2009, TGC-1 launched a program aimed at energy efficiency and energy saving optimization. Improving performance will allow us to achieve both economic and environmental benefits.
Environmental protection and conservation activities are among the most important components of TGC-1's work. The Company implemented an environmental management system in compliance with ISO 14001:2004, with annual measures to reduce emissions, provide construction and refurbishment of sewage treatment plants, and installation and upgrading of fish protection devices.
I am sure that through interaction between the Board of Directors, management and shareholders the Company will effectively address current challenges and successfully implement our development plans.
Kirill Seleznev
Chairman of the Board of Directors
Dear Shareholders,
A period is closing, during which the electric power industry in Russia as a whole and each of the power companies separately familiarized themselves with a new system of coordinates. New market realities, new challenges and new conditions. However, the main priorities for all of us, working in the power industry, have remained unchanged. TGC-1 seeks to develop and modernize. We rely on the Company's unity and the uniqueness of the regions in which we are working. Our strength lies in living energy, which is the energy of initiatives, optimism, efforts to overcome difficulties and the desire to set and achieve ambitious goals.
Looking back at 2009, I can confidently say that we found the solution to most problems identified by the shareholders. The value of TGC-1's assets has increased by almost 17 percent. That is due primarily to expansion of capital construction and the retrofit of our power plants. The 2009 investment program implementation totalled about 24 bn roubles. We put into operation four new generating units and continued modernization of Vuoksinskie HPPs Cascade as well as construction of new CCGT-units at Pervomayskaya, Yuzhnaya and Pravoberezhnaya CHPPs.
Simultaneously with putting in service new facilities, TGC-1 was the first among the power companies in Russia to begin successively decommissioning not only outdated equipment, but entire plants. The story of the first thermal power plant, the “Red October” Plant in St. Petersburg, built under our country's electrification plan (GOELRO), is now complete. The next step is to take out of service the overage generating capacity of Pervomayskaya and Central CHPPs.
Last year we also launched a new program to work with consumers and for the first time saved the summer cycle of hot water supply in some areas of St. Petersburg. The outcome of this experiment was a significant decrease in damage to our heating mains. In the near future, that practice will be applied in other regions where TGC-1 operates.
Another important issue to solve, which we began in 2009, is creation of an independent Heating Grid company. The management of all TGC-1's mains and intradistrict heating grids within the heat supply area of TGC-1 CHPPs in St. Petersburg will be transferred to our new subsidiary. That arrangement will significantly improve the quality of our services and create a solid base for TGC-1 enhancement.
Ensuring long-term competitiveness, modernization of fixed assets, financial stability and transparency are our priorities, both in our daily and long-term activities. I am confident that adherence to these core principles will allow us to continue to maintain one of the Company's main values – our shareholders’ support.
Boris Vainzikher
General Director
Chairman of the Management Board
