Ladies and Gentlemen!
I am pleased to have this opportunity to sum up the results of the year 2004, which was marked by the implementation of our company’s reform program. The most important result of the past year is that the company has fulfilled all the tasks set out by the shareholders, ensured stable production and transmission of heat and electric energy on the territory of the Novosibirsk region and serving over 1 million individuals and 21 thousand organizations achieved a significant growth of its capacities and network infrastructure.
In 2002-2004, our company was the first one in Russia to implement a broad program of reforming and increasing production capacities for the purpose of optimizing economic industrial processes and in line with the requirements of the federal energy legislation. The company has evolved into a group made of subsidiary specialized companies. All the thermal power plants have formed the Generation subsidiary. All the fuel transportation shops have formed the Fuel subsidiary. Heat Networks have been merged with Energiya MUP (Municipal Unitary Enterprise) and transformed into Novosibirskgorteploenergo OJSC. Regional Electric Networks CJSC, Production and Repairs Company CJSC, Novosibirskenergosbyt CJSC, and other companies have been established.
Reform results are impressive. The group has significantly improved its financial status, its performance indicators in key areas of activity and has significantly expanded its business. We have launched new turbines on Barabinskaia Thermal Power Station (TPP) and on Novosibirsk TPP-3, the sixth generating set on Novosibirsk TTP-5. Presently, the city’s main problem is insufficient transmission capacity of its heat pipelines and electric networks. To address that, a decision has been taken to complete the construction of the fourth and fifth lines of heat pipelines from Novosibirsk TTP-5, which had been suspended in the years of the economic crisis, and to build new pump stations and several substations.
Over 12 thousand employees work for OJSC Novosibirskenergo. The average age is about 40, over a half of them have higher and specialized education diplomas, three quarters are men. Our staff has sufficient qualifications and competence to effectively complete even the most technologically sophisticated tasks.
According to the annual rating of the Russian Ekspert magazine, OJSC Novosibirksenergo is one of Russia’s one hundred top companies, while the European edition of the Fortune magazine has ranked OJSC Novosibirskenergo 37th in its first rating of the largest Russian companies in 2005 (“The 2005 Russia 50”).
Presently the Novosibirskenergo group is breaking new grounds in business. All our subsidiaries conduct business not only inside but also outside the region. Each of them directly interacts with other subsidiaries and provides broad opportunities for meeting customer demand from outside organizations in a comprehensive way, from Engineering Center performing diagnostics to CJSC Information technologies and communications providing computer software. Following tender terms, our subsidiary companies seek to obtain a competitive edge by implementing the latest technologies, flexible prices, and a comprehensive approach to customer problems.
Reforming Russia’s energy sector requires facing the market realities. I believe our ample experience and professionalism will enable the company to be no less successful in a new environment. Further development of the industry will require implementation of many major projects and we are prepared to make a necessary contribution.
With best regards,
Kornei Gibert,
Director General
OJSC Novosibirskenergo
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