MESSAGE FROM THE CHAIRMAN OF THE BOARD OF DIRECTORS OF PJSC ROSSETI SOUTH
Dear shareholders, partners and colleagues,
In 2023, Rosseti South improved its operating performance and secured a stable financial result. The Company's highly qualified management, the team's collective responsibility, the selected strategy, and critical management decisions all contributed to the positive performance outcomes.
The Company built up net electricity supply and cut down electricity losses, in part through consolidation of power grid assets and upgrade in the electricity metering system. At the year-end 2023, Rosseti South has cleared a profit of RUB 2.4 billion against a loss a year earlier. Among the primary drives behind the favourable financial outcome were an increase in revenue from electricity transmission services, other non-recurrent receipts, change in valuation of financial investments in accordance with section 6 of Accounting Regulations 19/02. EBITDA rose by 1.8 times year-on-year to RUB 8.1 billion.
The Company's revenue went up by 14% to RUB 48.1 billion, driven by the growth in the volume of services provided and changes in tariffs for electricity transmission services, as well as the provision of non-tariff services. The Company is placing special emphasis on this type of activity, as it opens up new development opportunities even when demand in the power grid services market remains stable. The Company gained a reputation as a reliable partner in improving energy efficiency and upgrading street lighting, building outdoor lighting networks and beautifying urban areas at the request of municipal administrations.
As the enabler of the strategic development of the Company, the Board of Directors focused its efforts on constructive co-operation between all the Company's shareholders and their representatives in the reporting period.
In 2023, the Board of Directors of PJSC Rosseti South held 49 meetings, addressing 189 issues. The key documents approved include the Digital Transformation Programme of PJSC Rosseti South
In the reporting period, the Company outstripped the targets of its investment programme by 7% with actual spending of RUB 5.4 billion, which boosts the further social and economic development of the regions where Rosseti South operates.
The Company also over-fulfilled the plan for maintenance and repair of power facilities by 23.4%, allocating more than RUB 2.5 billion for this purpose. As a result, the Company was able to prepare in time and in full for the autumn-winter period, enhance the reliability of power supply, and reduce losses in power grids during peak load periods.
It was a milestone event in 2023 that the Ministry of Energy of the Russian Federation extended the status of a guaranteeing power supplier in the Republic of Kalmykia for PJSC Rosseti South.
The Company retains its position as one of the largest taxpayers in the regions of presence. During 2023, over RUB 2 billion was transferred to consolidated budgets.
As usual, considerable weight was given to the implementation of social corporate programmes: ensuring high standards of working conditions for the Company's employees and taking care of their health and well-being. Rosseti South, just as in previous years, keeps offering insurance and housing support to its personnel and rolls out incentive projects to attract and retain personnel. As part of a social partnership, the Company has extensive co-operation with relevant universities in the Southern Federal District, which educate specialists for the energy industry.
In 2024, the management of PJSC Rosseti South will stay the course to further stabilise the financial and economic situation in the Company and, of course, to modernise and develop the power grid complex in the four regions of the Southern Federal District. Together, this will help to bring better and more reliable power supply to consumers.