print version 

Find company
Home About the ProjectContact usFor the Clients
Enter code or ISIN
 
alpha / industry search

Issuers' Corner
Press Releases
Annual Reports Library

Financial Statements
SEC & FFMS Filings
Corporate Presentations
GM Materials
Issues Documents
Corporate Governance Materials
Russian Company Guide
Company Profiles
Corporate Calendar
Markets Corner
Consensus Estimates
Media Corner
News Line


Get updates



Home  Issuers' Corner  Press Releases  ROSSETI REGISTER LOG IN

Press Releases > ROSSETI  all about the company

company search
all press releases
all ROSSETI press releases

ROSSETI

August 3, 2011

Investor Day at IDGC Holding

IDGC Holding held an Investor Day in Moscow on August 3, 2011. At the event, the Company’s top management presented to investors and analysts its vision of how and where IDGC Holding’s business would grow.
In opening the Investor Day, Nikolay Shvets, Director General of IDGC Holding, emphasized that “at present, the key objective is to enhance financial and operating efficiency of distribution grid companies. To achieve this objective, we are applying active efforts to cut down electricity losses, reduce the wear of key assets, streamline capital expenditure, and improve tariff regulation. We also specifically focus on enhancing service quality and reliability.”
“IDGC Holding acts as the Government’s agent for operation of the Russian electricity distribution grid sector,” noted Nikolay Shvets in his report. “As a strategically important company, IDGC Holding must achieve industry-wide objectives through subsidiaries controlled by the Company, set future operating benchmarks for all industry players and ensure development and promotion of best industry regulation practices.”
Nikolay Shvets underlined the advantages of the transfer of IDGC/DGC to the Regulatory Asset Base (RAB) system of long-term tariff regulation aimed at encouraging sustainable development of the electricity distribution grid sector. “RAB-regulation remains a priority in our pricing policy,” underlined Nikolay Shvets, “for IDGC Holding will be unable to implement its large-scale investments unless the new pricing methodology is used to accumulate the necessary funds.”
According to Nikolay Shvets, both the entry to international electricity distribution markets and acquisition of new electricity distribution grid assets in Russia are attractive in terms of geographic business expansion, while IDGC Holding will pursue both goals.
“The first goal is to enter new regions of Russia and CIS countries. The second goal is to enter new European markets, including Western Europe, which will give us access to totally new management experience and cutting-edge technologies. To achieve this goal, we should consider exchange of assets with our European partners while taking advantage of the predominant position of IDGC Holding in the Russian market in negotiations,” said Nikolay Shvets.
Director General of IDGC Holding reminded the audience that, starting from 2011, its subsidiaries Moscow United Electric Grid Company (MOESK) and Tomsk Distribution Company (TDC) are managed by Russia’s Gazprombank and France’s electric utility ERDF.
The main purpose of placing the operating companies under the management of Russian and international partners is to acquire new experience and technologies in operating distribution grid companies to improve the benchmarking mechanism, which serves as a tool for enhancing operating and investment efficiency of all subsidiaries of the Company.
“Further reforms of the industry structure will depend on the outcome of such operation of grid companies by our Russian and international partners,” noted Nikolay Shvets. “If the pilot projects are successfully implemented and issues related to the retail market, tariff regulation and economic incentives are solved, we envisage that one or two IDGCs may be privatized in the mid-term.”
The chief executives of IDGC Holding’s operating entities toward which investors show a high appetite—IDGC of the Center, IDGC of the South, Lenenergo, and IDGC of the Volga—participated in a constructive dialogue with representatives of the investors’ community.
A conference of the executive management and managers of operating companies of IDGC Holding was held in Moscow on the first day as part of the Investor Day. Analysts from investment banks, including Alfa Bank, Troika Dialog, Otkritie, UniCredit, Gazprombank, Credit Suisse, Morgan Stanley, Goldman Sachs, VTB Capital, UBS, Wermuth, AM, Renaissance Capital, UralSib, TKB BNP Paribas, IC Grandis Capital, noted that such involvement of the top management of IDGC Holding and IDGCs in the discussion of the most urgent issues related to the operation of the distribution gird sector made it possible to understand better the Company’s business model and outlooks of further cooperation.
Speeches delivered at the conference included those by Deputy Director General for Corporate Governance and Property of IDGC Holding Aleksey Perepyolkin, Deputy Director General for Economic Affairs and Finance of IDGC Holding Aleksey Demidov, and executives of IDGC Holding’s companies.
The Investor Day will continue tomorrow. A visit to Tver is scheduled for August 4, 2011, for a meeting with representatives of Tver Region executive authorities in charge of utilities and electricity.

 

 

 

Search by industry

Agriculture, Foresty and Fishing | Chemicals | Engineering | Ferrous Metals | Financial, Insurance & Real Estate | Food & Kindred Products | General Construction | Information Technology | Media & Publishing | Non-Ferrous Metals | Oil & Gas | Pharmaceuticals | Power Industry | Precious Metals and Diamonds | Telecommunications | Transportation | Wholesale & Retail Trade

Search by alpha index

A B C D F G H I K L M N O P R S T U V W X Z


Site Map
© RUSTOCKS.com
Privacy Statement | Disclaimer