Message from the Chairman of the Board of Directors
Chairperson of the Board of Directors, PJSC IDGC of the North-West
Dear shareholders and investors, and dear partners,
PJSC IDGC of the North-West is one of the most important companies of the strategic region of our country. Seamless operation and development of the regional power grid are our primary objectives. The successful fulfillment of these objectives in 2015 helped to increase the Company’s investment appeal and created conditions for further effective development.
In relations with shareholders, the Company is committed to adhere to the fundamental principles of corporate governance. The protection of interests of each shareholder has been and remains a priority for the Board of Directors. We consistently work to ensure that the corporate governance system in PJSC IDGC of the North-West meets the best standards. The Company’s ratings confirm this.
Despite the difficult economic situation, we have performed our operating obligations and achieved favourable financial results. As of year-end, the net profit amounted to RUB 644 million.
Financial result is the outcome of continuous government relations work in the regions and careful weighted attention of the management to the Company’s operating expenses.
During 2015, the Board of Directors, examined, including through in-person meetings, many diverse current and strategic issues, while focused on economic aspects of the Company’s operations. Reducing the accounts receivable, providing timely and efficient grid connection of consumers, increasing the value of the Company’s assets, building the incentive system for the entire management of the Company —from the executive team to the management of distribution zones — these are the subjects of discussion the Board of Directors was focused on.
RUB 4.8 billion was spent for development of power grids in regions where the Company operates.
Financial health of the Company during the difficult economic situation in the country was one of the key issues to decide frequently. Conceptual documents aimed at improving the quality of governance in all areas of operations of the Company were adopted. The Board approved the restated Standard and Rules for the Company’s business planning, Rules for operational efficiency improvement and cost reduction, Rules for domestic funding, Rules for payments, and Unified Procurement Standard.
Let me thank members of the Board of Directors, committees, management and employees of the Company for the active and involved participation in the Company’s operations in 2015.