Message from the Chairman of the Board of Directors
The past year was a crucial period for coming up with new promising ways to further develop the Inter RAO Group, strengthen its position in matters concerning sustainable development, successfully build new facilities, and improve its financial and economic performance.Igor Sechin Chairman of the Board of Directors
In 2019, the Company succeeded in meeting all of its goals in key areas of operations as part of the implementation of its global strategy until 2020. The Inter RAO Group maintains leading positions in the industry both in terms of its performance standards and production indicators.
The work performed by Inter RAO management to boost efficiency has resulted in annual growth in both financial and economic indicators. As of the end of 2019, the Company’s key indicator – EBITDA – stood at RUB 141.5 bln, an increase of 16.7% from the previous year. IFRS net profit grew by 14.3% and amounted to RUB 81.9 bln. Revenue was the highest ever in the Company’s history and topped RUB 1 trillion for the first time, increasing by 7.2% compared with 2018 to RUB 1.032 trillion.
Focusing on business diversification, implementing a large-scale Investment Program, renovating the service term of our main equipment as well as consistently consolidating assets and developing potentially profitable segments of the industry all made it possible to achieve the goal of increasing the Company’s shareholder value. In just ten years, EBITDA has expanded by thirteen-fold, revenue has skyrocketed by fifteen-fold, and net profit has grown from negative RUB 12.5 bln to RUB 81.9 bln. Inter RAO’s capitalization has increased by 380% to RUB 526.4 bln since 2009.
Successfully implementing our Strategy has enabled the Company to consistently pay dividends to shareholders. As of the end of 2018, RUB 17.9 bln had been allocated for dividend payments, a 119 fold increase from the amount of the first dividend payments. In the coming year, dividend payments will grow by another 14.3% if the appropriate decision is adopted by the annual General Meeting of Shareholders.
Today, the Inter RAO Group faces new challenges. In addition to improving the efficiency of its operating activities, modernizing assets, and introducing new technologies in business management and digitalization, we need to start implementing the Company’s Development Strategy for the period until 2030. I have no doubts that Inter RAO will take into account current trends in the development of the economy, industry, and society.
Environmental issues, climate change, and resource conservation are currently having a major impact on the business strategies of major players in different market segments around the world. The Group’s strategy focuses on new business priorities and working in accordance with the principles of social responsibility and sustainable development.
In March 2019, Inter RAO joined the UN Global Compact and reaffirmed its commitment to the Ten Principles of sustainable development, human rights, labor relations, environmental protection, and anti-corruption. The Company intends to continue integrating the principles of the Global Compact into its Development Strategy, operational processes, and corporate culture in the interests of long-term sustainable development and will inform all stakeholders about the progress made in integrating the principles of the Global Compact.
I am certain that the experience we have accumulated and the exemplary expertise of the Company’s management team and staff will enable the Inter RAO Group to appropriately meet the challenges of the times and strengthen its leadership on the Russian market and around the world.