Dear Shareholders,
The Gazprom Group is the largest owner of electricity assets in Russia and the leader in installed capacity among the country's power generation companies. Gazprom's main priority in the electric power industry is to provide customers with reliable supplies of electricity and heating. This goal is achieved largely thanks to the implementation of major investment programmes, upgrades, and the construction of new energy units.
In 2012, Gazprom set new records in the development of the electric power industry. The volume of inputs exceeded 5 GW, more than half from the general commitments made by the group upon entering the energy industry. The Gazprom Group has become the industry's undisputed leader for updating of production facilities.
This year, Russia's most powerful combined cycle gas turbine unit of 800 MW was built at the Kirishskaya TTP. It is the largest heat generation facility introduced in the past 30 years and runs as a single unit. A combined cycle gas turbine unit with a capacity of 450 MW became operational at the Pravoberezhnaya CHPP in Saint Petersburg, and in Sochi construction of the Adler CHPS, with a 360 MW capacity, was completed.
The launch of these new modern units on the market has had a positive impact on the financial performance of the Group's power sector companies. In 2012, TGC-1 was able to increase revenues to 62.5 billion rubles, while profit amounted to 6.2 billion rubles, which is a 60 % increase from the previous period. The price of assets for the year increased by 7.2 %.
Figures from 2012 confirm that the management of TGC-1 has chosen the right path. The programme that was implemented to improve shareholder value has brought additional benefits in the dynamics of financial-economic indicators.
Focusing on good governance, improved financial performance, optimizing costs, and the introduction of innovative technologies and advanced technical solutions remain the Company's top priorities.
Moreover, particular attention is given to the need to respect nature and to methods to protect the environment.
The new realities of the electricity market also determine the new conditions for development. Today we are faced with challenges of a new era, which I am sure will be met with success based on the constructive work of the management, Board of Directors, and the Company's shareholders!
Dear Shareholders,
This past year has been an eventful one for our Company, including the completion of major investment projects, anniversaries of stations, and a large-scale reconstruction programme.
We began supplying the electricity market with new combined-cycle power at the Pervomayskaya CHPP. A combined cycle gas turbine 450 MW unit was made operational at the Pravoberezhnaya CHPP, making it the third CCGT-unit built by TGC-1 over the past few years in Saint Petersburg.
In total, the combined-cycle gas turbine units of the Yuzhnaya, Pervomayskaya, and Pravoberezhnaya CHPPs in Saint Petersburg yielded 15 % of annual output, which is a third more than in 2011. Efficient operation of the new units allowed TGC-1 to strengthen its position as Russia's second biggest regional power generation company in terms of installed capacity.
In 2012, TGC-1 completed construction at the Svetogorskaya HPP in Leningrad Oblast. The Matkozhnenskaya HPP in Karelia was promptly restored following weather damage, while modernization of the main equipment at the Iovskaya HPP continued in the Arctic.
In essence, we have completed the majority of the multi-year programme for commissioning new generation, with more than 12.4 billion rubles invested in projects.
In the long term, we remain focused on the completion of integrated reconstruction on the Vuoksa HPPs Cascade and introduction of a heating transit pipeline from the Apatitskaya CHPP, the creation of a joint complex subsidiary and closure of the old sector of the Pervomayskaya CHPP, and the modernization of power supply equipment and construction of combined cycle gas turbine units on the territory of the Central CHPP – the oldest thermal power station in Russia. This station's upgrade will coincide with its 115th anniversary. The near future will see an increase in the quality of energy supply to the historical center of Saint Petersburg.
Reliability, efficiency, and sustainability are our goals both in new construction and the modernization of existing equipment. In addition to large-scale external projects, particular emphasis is being placed on improving the efficiency of our business processes. We are implementing modern 'lean production' tools at all of our plants and are working with the regions on the improvement of payment discipline. Today, TGC-1 is first and foremost a loyal partner for regional governments when making decisions of social importance.
Employees are and will remain the main asset of the Company. The experience and professionalism of our workers with their selfless work and courage ensure the smooth day-to-day functioning and general stability of our power systems and make regional development possible. Only the joint efforts of the team, management, and the shareholders can help us to successfully overcome the important and challenging tasks that face us over time.
