The discussion focused on the company’s performance in 2019 and plans for its development.
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President of Russia Vladimir Putin: Good afternoon, Mr Livinsky,
How did the year go?
Rosseti CEO Pavel Livinsky: Mr President, we did very well last year. All tasks facing the Rosseti group of companies in 2019 were fulfilled.
In 2019 our profit constituted 125 billion rubles. Our credit score increased. We reduced the debt of the Rosseti group of companies. The cost of our shares, market cap, increased by 80 percent in 2019.
Now we are in the middle of the autumn-winter season. The winter is unseasonably warm in the European part of Russia, but there are many other abnormal phenomena. We do not have shutdowns on a large scale, so we are coping. All standby teams and emergency services are ready for action.
I am quite sure that we will not let anyone down this autumn-winter season.
Vladimir Putin: What about your financial results?
Pavel Livinsky: Our profit is 125 billion. It is at the level of 2018. We fulfilled and even exceeded our business plan in terms of revenues, EBITDA and financial stability.
I must admit though that the most difficult financial situation was at Rosseti Northern Caucasus. We know how to stop losing money. The Government adopted a special resolution No. 534 and we are reducing our losses in line with it. By 2023, it will stop sustaining losses. This is the only unprofitable Rosseti subsidiary. All of our other companies are stable and profitable. We had problems in Lenenergo but we resolved them in 2018. This is borne out by our aggregate market cap – both the subsidiaries and the head Rosseti structure.
Vladimir Putin: What about your development plans?
Pavel Livinsky: Mr President, in 2019 we carried out 322,000 technological connection contracts. We provided a total of 14.5 gigawatts for the population, business, industry, services and agriculture. This is a lot.
We fulfilled all measures of the comprehensive plan for the expansion and development of the main infrastructure. I am referring to electricity supply for the Power of Siberia gas pipeline, the Baikal-Amur Railway and measures to improve the reliability of electricity supply to the Moscow Region. Our combined investment programme for 2020 is about 290 billion rubles. It takes into account all the development requirements in the regions where we operate.
I will mention the biggest facilities. We are going to put into operation a 330-kV substation in Murmansk for the new consumers. There are also five high-voltage substations and the completion of reconstruction and expansion of electricity supply stations in the Kaliningrad Region. Today, we can be completely self-sufficient because we can fully supply ourselves with electricity even in cases of an emergency, not to mention regular situations. These are the facilities in each of the regions we operate in, the most difficult, complex projects where the industrial development is impeded. We take this into account in our development plans, and in 2020, we are keeping to the schedule, including the second stage of measures to improve the reliability of electricity supply to the Moscow Region.
Vladimir Putin: Good, thanks.