Dmitry Baranov, senior expert of Finam Management

– Annual report of Energoatom Concern proves that Rosatom’s policy to enhance the transparency of its company and to reduce their costs is being successfully implemented

Energoatom Concern OJSC (Open Joint Stock Company “Concern for Production of Electric and Thermal Energy at Nuclear Power Plants”) has published a report on its performance in 2008. In line with the regulation on disclosure of information by issuers of equity securities, adopted by the Federal Financial Markets Service on Oct 10 2006, the report presents the Concern’s performance in 2008 and its further steps to attain its strategic goals and to ensure its long-term sustainable development. The report says that in 2008 the Concern showed all-time high performance: its nuclear power plants generated a total of 162.3bln KWh, the capacity factor was 79.5%, the commercial sales 127.57bln RUR. Last year, just like before, the Concern operated safely and efficiently with no single over “0” INES event registered throughout the year. 

The annual report of Energoatom Concern, the 100% subsidiary of Atomenergorpom OJSC, proves that the policy of Rosatom State Nuclear Energy Corporation to enhance the transparency of its company and to reduce their costs is being successfully implemented. Last year the Concern reformed its organizational structure in compliance with the new tasks. Now the Concern is an open joint stock company and a full party to market relations. This status allows the Government to better control the Concern’s activities and expenses.

It should be noted that the greater part of the reforms were carried out in the face of crisis, but the Concern coped with all of its tasks and showed excellent performance in 2008: the commercial output totaled 127.57bln RUR, the nuclear power plants of the Concern generated 162.3bln KWh (2.5% more than in 2007), the capacity factor amounted to 79.5%. 

Last year Energoatom Concern actively introduced a system of tender procedures for the purchase of products and services for itself and its enterprise. This measure has substantially enhanced the efficiency of the use of budgetary funds. This policy has helped the Concern to demonopolize the suppliers market, to reduce its dependence on specific suppliers and to enhance its independence.

The formation of the internal control and risk management system serves the same purpose. This system will help the Concern to enhance control over its expenses and will stimulate its investment activities. The decision to reduce constant expenses by 15% and administrative-economic expenses by 25% in 2009 is a reasonable measure. It will help the Concern to more effectively spend its money and to comply with the highest safety standards in its industrial activities. The mid-term goals of the Concern are part of its long-term strategy and are clearly formulated and practicable. In conclusion, I would like to point out that the annual report of Energoatom Concern is a professional document presenting all necessary information for potential investors and the Government, as the shareholder of the Concern.