The Company also uses financial, industrial, intellectual, human, social and reputational, and environmental capitals (resources).
In its day-to-day operations, Rosseti Kuban balances out interests and creates values for all stakeholders, contributes to the economic growth of the regions where it operates, adheres to the idea of sustainable development, and ensures reliable and affordable energy supply to consumers.
Change in the cost of capitals over 2022
Capitals as at 31 December 2021
How we created value in the reporting year
2022 results
Financial
Net profit — RUB 1,711.8 mn
Net asset value at the end of the year — RUB 41,029.5 mn
Market capitalisation of the CompanyCalculated by Moscow Exchange, PJSC at the market price (3).:
Including outstanding additional shares — RUB 22.46 bn
Revenue in 2022 — RUB 63,739 mn, up RUB 6,069 mn year-on-year
EBITDA in 2022 — RUB 16,141 mn, up RUB 7,262 mn year-on-year
The increase resulted mainly from an uptick in the volume of services provided
The net profit was RUB 5,244.5 mn, up RUB 3,532.6 mn year-on-year, mainly due to an increase in the volume of services provided.
Net asset value at the end of the year — RUB 45,803.2 mnThe year-on-year increase in net assets was RUB 4,773.7 mn due to gains in equity resulting from the year-end profit.
Including outstanding additional shares — RUB 20.38 bn
The loss in the Company’s market capitalisation coincided with a more notable decline in the IMOEX and the MOEX Electric Utilities.
Production
Total number of 35–220 kV substations and 6—10(35)/0.4 kV transformers substations — 24,835
Length of PTLs — 93,070 km
Installed capacity of 35–110 kV substations — 11,561.03 MVA
Installed capacity of 10–6/0.4 kV substations in the distribution grid — 5,640.37 MVA
System average interruption duration index (ISAIDI) — 4.0939 h
RUB 11,469 mn of capital investment (excl. VAT) assimilated
Renewal of the following energy assets is underway:
Commissioning of new, renovated and upgraded facilities, including under grid connection of consumers, renovation and upgrade of equipment
Consolidation of grid assets within the Company
Write-off of obsolete equipment
Transfer to reserve or decommissioning of equipment
Volume of electricity transmission services — 21,947.8 mn kWh, up 4.5% year-on-year (revenues — RUB 61,452.9 mn)
Number of grid connections completed in 2022 — 36,912 for a total capacity of 795 MW (revenues — RUB 1,282.1 mn)
Total number 35–220 kV substations and 6–10(35)/0.4 kV transformer substations — 25,690
Length of PTLs — 93,600 km.
Installed capacity of 35–110 kV substations — 11,826.4 MVA.
Installed capacity of 10–6/0.4 kV substations in the distribution grid — 5,978.038 kV.
System average interruption duration index (ISAIDI) — 2.8424 hours, down 30.6% year-on-year
The number of accidents in the 110 kV and above grid dropped by 21% as compared to the previous year
Intellectual
Actual value of R&D expenditure (IR&D) indicator — 0.16% of own revenues, with the plan of 0.15%
Actual value of the Innovative Products (Goods, Works, Services) Procurement Indicator (IINNOVATIONS) — 4.33%, with the plan of 4.6%
Delivery of the R&D Programme, integration of equipment and devices developed under R&D
Introduction of innovative technologies and solutions
Actual value of R&D expenditure (IR&D) indicator — 0.21% of own revenues, with the plan of 0.15%
Actual value of Innovative Product (Goods, Works, Services) Procurement Indicator IINTEGRATION — 3.5% of actual assimilation of the investment programme, 76% of the plan
Human
Average headcount — 8,876 people
Staffing level at the end of the year — 92.9%
Employees with higher vocational education — 51.5% and with primary/secondary vocational education — 34.5%
Annual acquisition order for working wear and shoes was fully completed
The Company’s employees received compensation payments, including the provision of voluntary health insurance services
12,609 people trained (143.8% of the average headcount) Training costs amounted to RUB 87.6 mn
Occupational health and safety (OHS) costs in 2022 were RUB 294.451 mn, up 2.5% year-on-year
Activities under comprehensive programmes scheduled for 2022 were fully completed
To preserve employees’ health and life, the Company purchased necessary safeguards and safety equipment in 2022
Average headcount — 8,767 people
Staffing level at the end of the year — 93.9%
Employees with higher vocational education — 52.7% and with primary/secondary vocational education — 35.7%
Annual acquisition order for working wear and shoes was fully completed
The Company’s employees received compensation payments, including the provision of voluntary health insurance services
Social and reputation
High degree of social responsibility
High level of business transparency:
сompany’s website
mass media
Internet
and congress and exhibition events
Raising public awareness on the Company’s activities: 27,500 publications related to the Company’s activities were made in the federal and regional media, as well as on social media resources in 2022
Accumulation of reputation capital
Percentage of positive and neutral information messages about Rosseti Kuban’s activities initiated by the Company’s PR divisions was 77% and 21%, respectively.
Environmental
The Stockholm Convention on Persistent Organic Pollutants’ requirements are followed
The Company set up a phased decommissioning of trichlorodiphenyl-containing equipment and ensured its secure disposal. The costs amounted to RUB 19.0 mn
731 pieces (34.26 tonnes) of machinery containing polychlorinated biphenyls (PCB) were decommissioned and replaced with more ecologically friendly models
Business Model of Rosseti Kuban, PJSC
The core business of the Company is electricity transmission and distribution services
96.4%
of the Company’s revenues in the reporting year
Scheme of the Company’s Electricity Transmission Operating Flows
Consumers of Rosseti Kuban’s electricity transmission services are:
guaranteeing suppliers (in the reporting year, NESK, JSC and TNS Energo Kuban, PJSC) – wholesale and retail market entities engaged in energy sales activities and obliged to conclude an agreement with any consumer who applies to it and located within the boundaries of its area of operations
other companies involved in energy supply activities (62 in the reporting year)
consumers (95 in the reporting year) that signed direct agreements to purchase electricity with Rosseti Kuban (Novoroscement, JSC, Tamanneftegaz, CJSC, Eurochem-Belorechenskie Minudobrenia, LLC, Ptitsefabrika Primorskaya, LLC, Agrofirma-Plemzavod Pobeda, OJSC, FSBI Kubanmeliovodkhoz Administration, Sad-Gigant, OJSC, Verkhnebakansky Cement Plant, OJSC, Abrau-Durso, CJSC, Novoroslesexport, JSC, RAMO-M, JSC, NMTP, PJSC, Kanevskoy Gas Equipment Plant, LLC, IPP, OJSC, etc.)
The Company receives payment for its electricity transmission services from electricity retailers and from direct consumers, respectively.
To compensate for electricity losses occurred during transmission in the Company’s grids, Rosseti Kuban buys the corresponding amount of electricity from guaranteeing suppliers such as TNS Energo Kuban, PJSC and NESK, JSC, as well as from VIE, LLC and LUKOIL-Kubanenergo, LLC.
Since 2007, the region has had a common-pot tariff for electricity transmission services in place which applies to all consumers of electricity transmission services in Kuban and Adygeya, regardless of which grid organisation they are connected to.
The main settlement model is the “Pot at the top”: Rosseti Kuban is assigned the status of the backbone grid organisation – the “pot holder”. According to this model, Rosseti Kuban receives consumers’ payments for electricity transmission services (regardless of which grid organisation they are connected to), then the Company settles accounts at individual tariffs with downstream grid organisations the grids consumer terminals are connected to.
The largest companies engaged in similar activities in the regional electricity transmission market include NESK Electroseti, JSC, Oboronenergo, JSC, RZD, OJSC, and Neftegaztekhnologia-Energia, JSC.
We have reason to assume that the Company will continue to hold a dominating position in the local electricity transmission market due to the high rates of renovation and renewal of its power grid infrastructure as well as the continually increasing number of grid connections.
ELECTRICITY SUPPLY TO THE COMPANY’S GRIDS IN THE REPORTING YEAR (%)
