On 29 April this year the annual General Meeting of KEGOC's Shareholders reviewed and approved the annual financial statements of KEGOC for the year ended on 31 December 2015.
According to the approved consolidated financial statements of KEGOC the revenues for the previous year amounted to KZT 110.1 billion and increased by 17.8 % compared to 2014.
As is known, KEGOC raised borrowings to upgrade existing and construct new high-voltage networks and implement a number of major investment projects aimed to ensure energy independence of Kazakhstan and develop the National Power Grid. The creditors are the international financial institutions such as the International Bank for Reconstruction and Development and the European Bank for Reconstruction and Development. As of 31 December 2015 the debt on borrowings was USD 503.6 million (2014: USD 590.1 million).
The decision adopted by the Government of the Republic of Kazakhstan in the second half of 2015 to change the monetary policy to introduce flexible exchange rate of tenge against foreign currencies caused foreign exchange (non-cash) losses of KZT 35.7 billion. To mitigate the negative impact caused by the currency exchange rate growth, KEGOC optimized operating costs and capital investments, which allowed the Company to reduce the net loss to KZT 7.8 billion in 2015. These actions and foreign currency accumulation on the deposit accounts in the Kazakhstan second-tier banks maintained the financial stability and an adequate level of liquidity, as well as prevented the breach of covenants under all loan agreements.
According to KEGOC's Regulations on Dividend Policy, the source of dividends shall be net income. Therefore, since the Company had loss as of 31 December 2015 the General Meeting of Shareholders decided not to pay dividends for 2015.
The above stated factors did not influence the fulfilment of obligations by KEGOC to ensure reliable operation of Kazakhstan Unified Power System.
KEGOC enjoys a well-deserved reputation and trust both from the public and the potential investors. Currently KEGOC's shares are among the most liquid vehicles on the Kazakhstan stock market.
KEGOC's dividend policy allows to pay dividends not only for the past year, but for the past half-year as well. In future KEGOC plans to adhere to the dividend policy and, provided the positive result in 1st half-year 2016, initiate the General Meeting of Shareholders to pay dividends on ordinary shares.
Currently the average weighted price of one ordinary share is approximately KZT 870.
All materials of the annual General Meeting of KEGOC Shareholders are available at KEGOC's corporate website www.kegoc.kz in Shareholders and Investors section.
Reference: On 18 December 2014 under the People's IPO Programme KEGOC held an initial public offering of 25,999,999 ordinary shares on the Kazakhstan Stock Exchange through subscription. The price of one placed ordinary share was 505 tenge. Currently, the total number of placed ordinary shares of KEGOC amounts to two hundred and sixty million (260,000,000). 90% of them plus one share are held by Samruk-Kazyna, the other 10% of shares minus one share were sold to minority shareholders under the People's IPO Programme.
59 Tauyelzisdik Ave, Almaty District, Astana
Republic of Kazakhstan, 010010
Tel.: +7 (7172) 690-468, +7 (7172) 690-203
Fax: +7 (7172) 690-455
KEGOC is the System Operator of Unified Power System of Kazakhstan, and it owns and manages the assets of the National Power Grid (NPG). The company is the natural monopoly. It owns about 24.9 thousand km of 35-1150 kV electricity transmission lines and 77 electrical substations with 36.2 MVA of installed transformer capacity. These lines and substations form the NPG. The company employs more than 4.8 thousand people. More detailed information about the Company is available at its corporate website: www.kegoc.kz.