Dear Ladies and Gentlemen:
OJSC Novosibirskenergo has finished another year of its operations that has been signified by big changes for our Company and the achievement of a substantially new level of development.
It can be said with confidence that 2003 was a year of a rapid transition to a new stage of development. We have not only achieved good financial and production results, but also, while adapting to the new environment, have reached a multitude of goals in accordance with the development strategy of OJSC Novosibirskenergo.
The Federal Law "On the Power Sector" and corresponding changes in the Civic Code of the Russian Federation have called for a fundamental assessment of the existing model of operations of OJSC Novosibirskenergo, and for implementation of restructuring measures aimed at reorganization of existing activities.
Our energy Company is setting an example for the rest of the country - we are the first to implement a large-scale program of reforms, spinning off auxiliary activities. Without doubt, the last year has brought the most deep and substantial changes to Novosbirskenergo since the first Soviet electrification plans. It is a core breakthrough. According to the rating of the business magazine Expert, today the Company is one of the top 200 companies in based on two indicators at once: the sales volume and the market value.
Much is has been done towards improving the personnel policy, strengthening of the management and financial position of the Company. The internal reorganization of production and management structures of Novosibirskenergo is almost completed, aimed at optimization of costs and the growth of performance efficiency. In 2003, after a long pause, an investment program was adopted and is being implemented, so the Company is actively modernizing existing capacity and, what is especially important, is adding new capacity.
In the last year, an equally important event was the preparation of consolidated financial reports of Novosibirskenergo in IAS format that is important for international bank financing and further development of the Company.
OJSC Novosibirskenergo actively develops public relations, explaining management position on the Company's development to general population, the executive and legislative branches of power, mass media, and employees. This, in turn, brings recognition from the local community. For instance, Novosibirskenergo's personnel won a newspaper award "For Willingness to Share Information, Knowledge, and Expertise with Readers" of "Komsomolskaya Pravda". Relations with local industry representatives have been strengthened through a membership in Interregional Association of Executives of Industrial Companies.
We are facing new objectives and new goals. The power sector reform requires responding to different market conditions, when a part of our business will become competitive. I believe that the accumulated experience and professionalism will help the Company under new conditions to achieve financial and economic success.
I would like to express our commitment to continue to achieve goals set by Novosibirskenergo, and would also like to thank everyone who stayed with the Company during this difficult time of reforms - for understanding, hard work, and support.
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