OREANDA-NEWS. On 06 May 2008 was announced, that JSC “TGC-1” announced the results of the Annual General Shareholders’ Meeting held on 29 April 2008 in Saint Petersburg.

The Company’s shareholders decided to approve the Annual Report, annual financial statements and considered a number of other proposals.

In his address to shareholders, Valery Rodin, General Director of JSC “TGC-1”, said that the year 2007 became “the year of the beginning of large-scale construction projects” for TGC-1. A new stage in the development of the power sector began in the North-West region as the industry started to improve its efficiency and catch up with the pace of technological change. The construction of a new generating unit was launched at Pervomayskaya CHPP-14. Contracts for the replacement of all the hydroelectric generating units at Vuoksinskiye HEPPs Cascade, the construction of a new generating unit at Yuzhnaya CHPP-22 and the designing of a new generating unit at Severnaya CHPP-21 were signed. The first stage in the renovation of HEPP-3 of Nivskiye HEPPs Cascade, the construction of a steam boiler unit at Pravoberezhnaya CHPP-5, an energy boiler at Vasilieostrovskaya CHPP-7 and a diesel engine power plant at Valaam Island was started. A new turbine unit was put into operation at Avtovskaya CHPP-15. Over 50 km of heat supply pipelines were renovated, which was more than the total length of lines that had been repaired over the two previous years combined. An agreement was reached with the authorities of the Republic of Karelia and Murmansk Oblast to expand Petrazavodskaya CHPP and build Murmanskaya CHPP-2.

“Speaking about the successes achieved in the year 2007, it is also worth mentioning the successful issue of additional shares of TGC-1. The offering price of the TGC-1’s securities totaled, including the net debt, USD 710 per 1 kW of installed electricity generation capacity, exceeding the values reached by other territorial generating companies which had placed their additional shares earlier. The Company, therefore, not only raised funds to finance the implementation of its high-priority projects under the investment program, but also acquired a new principal stakeholder, which is expected to have a positive impact both on the operating activities of the Company and its future development”, Valery Rodin said.

In 2007, the installed electricity generation capacity of TGC-1 increased from 6,248.4 MW to 6,278.4 MW, while the heat generation capacity grew from 14,735 GCal/h to 14,754 GCal/h. The total electricity output reached 26,063.5m kWh, and the useful heat output amounted to 23,509.9m GCal in the reported period.

Under the Russian Accounting Standards, the revenue received by JSC “TGC-1” in 2007 is estimated at RUR26,194.6m, which represents a 27.8 % rise compared to the year 2006. The gross profit of JSC “TGC-1” amounted to RUR851.0m in the past year.

The net profit was reported at RUR124.1m. With dividends of RUR83m paid for the first quarter 2007 (on 19 June 2007, the Annual General Shareholders Meeting of JSC “TGC-1” adopted a resolution to pay dividends for the first quarter 2007 of RUR0.00002839307 per ordinary share), the Annual General Meeting decided not to pay dividends on Company’s ordinary shares for the financial year 2007. Hence, the retained profit for the year 2007 amounted to RUR41m, RUR6.2m of which were allocated to reserves according to the shareholders' decision, and RUR34.9m were kept as savings.

The General Shareholders Meeting also elected new members of the Board of Directors of TGC-

Nominee’s full name 
Position

Valentin Kazachenkov 
General Director, OOO “Peterburgregiongas”

Alexander Polukeev 
Vice Governor of St. Petersburg

Kirill Seleznev 
Board member, Head of Marketing, Gas and Liquid Hydrocarbons Processing, JSC “Gazprom”

Alexey Mityushov 
General Director, JSC “Gazpromenergo”

Denis Fedorov 
Head, Electric Power Sector Development and Marketing, JSC “Gazprom”

Mikhail Khodursky 
Chairman of the Board, ZAO “Gazenergoprombank”

Anatoly Gavrilenko 
General Director, ZAO “Leader”

Irina Grave 
Vice-President, Fortum Power and Heat Oy in St. Petersburg

Tapio Kuula 
President, Fortum Power and Heat Oy

Dmitry Novoselov 
Vice President, Head for Fortum’s Operating Activities in Russia, Fortum Oyj

Andrey Drachuk 
Head, Economic Analysis of Investment Projects in the Energy Sector, JSC “SO of UES”


The Company’s Audit Commission was elected as follows:

Nominee’s full name 
Position

Evgeny Zemlyanoy 
Lead Expert, Electric Power Sector Development,

JSC “Gazprom”

Mikhail Sorokin 
Deputy Head, Energy Engineering Division of the Electric Power Sector Development and Marketing Department, JSC “Gazprom”

Margarita Mironova 
Head, Internal Audit, OOO “Mezhregiongas”

Irja Vekkila 
Vice-President, Fortum Oyj

Natalia Orlova 
Deputy Chief Accountant, JSC “TGC-1”

ZAO “PricewaterhouseCoopers Audit” was elected the Auditor of TGC-1.