Address of the CEO

This was a difficult year. External challenges, excess capacity and zero growth of electric power consumption had a rather negative effect on the Company’s performance. Despite this challenging economic environment, Unipro PJSC keeps the lead in the Russian heat power industry in terms of efficiency.

In 2019, we fulfilled all of our obligations to electric power consumers.

The Company is ensuring safe and efficient operation of generating equipment. Over the course of the year, we carried out all the repair works we had scheduled, and subjected our existing capacities to a large variety of technical refurbishment activities. Starting from 1 January 2019, we subjected the CCGT at Shaturskaya GRES branch to remarking, which increased its installed capacity by 6.6 MW and brought it to the current 400 MW. In addition, Surgutskaya GRES2 increased the capacity of CCGT Power Unit No. 8 by 10 MW. Thus, Unipro PJSC installed capacity reached 11,245 MW in 2019.

The repair and refurbishment of Power Unit No. 3 at Berezovskaya GRES reached its final stage. The particular attention we give to the safety and reliability of the works we perform has forced us to reschedule the commissioning of the unit, but this will not affect the amount of dividends that we will pay to our shareholders. We have no plans to deviate from the dividend policy adopted a year ago.

Unipro PJSC joined in the electric power industry modernisation programme. In 2019, two SPU units of Surgutskaya GRES-2 and another steam-power unit of this power plant were selected for the programme for 2020. In accordance with our modernisation projects, all the selected power units will increase the installed capacity up to 830 MW each.

We are continuously focusing on occupational health and safety issues. This concerns both our staff and our contractors’ employees. I am proud to say that in 2019, Unipro PJSC took a well-deserved place among the safest companies of Uniper Group, as it had zero severe workplace incidents. Once again, we demonstrated that our Company applies quite demanding standards to the performance of the Health and Occupational Safety Management System when we successfully passed a supervisory audit on compliance with OHSAS 18001-2007 that took note of high personal involvement on the part of managers at all levels and specialists of the Company branches.

Unipro PJSC has a comprehensive approach to the development of our staff – the Company’s primary value. The staff training and talent pool development programmes implemented in 2019 contributed to improvements in the quality of the Company’s human capital. The Company worked hard to both create a positive image of the employer in the labor market and to attract young specialists.

Environmental protection is among Unipro PJSC priorities in the area of sustainable development. In 2019, in accordance with the requirements of Russian legislation, the Company proceeded with the implementation of projects aimed at creating an automatic system to continuously monitor emissions at Berezovskaya GRES and erecting fish-protection works at Surgutskaya GRES-2 and Yaivinskaya GRES. The Company made the first evaluation of greenhouse emissions calculations for validity, which is the first step toward the creation of a corporate control system for such emissions. In addition, the Company successfully passed a recertification audit of the environmental management system and renewed its certificate until 2022.

In 2019, we fulfilled all of our obligations to electric power consumers.

Similar to past years, Unipro PJSC took energetic steps to improve the living standards of the population. We are continuously promoting educational, healthcare and sports projects. In 2019, Unipro PJSC sponsored the purchase of medical equipment for healthcare facilities in the regions of the Company’s operations. We give special attention to the development of programmes in the field of culture. Thus, thanks to our Company’s support, Sharypovo hosted the Golden Mask Festival in 2019 for the first time in its history

Unipro PJSC sponsored the exhibition of works by great Russian painter V. I. Surikov, that turned into a centerpiece of the Krasnoyarsk Winter Universiade 2019.

In 2020, we are planning to maintain our title of the most efficient company in the sector of heat power generation in Russia. To do so, we should prepare the capacities of Surgutskaya GRES-2 for the forthcoming modernisation and commission Power Unit No. 3 at Berezovskaya GRES. In addition, we will have to ensure reliable supplies of electric power for the national economy. This will require maximum commitment and coordinated effort from us. I am certain that the unparalleled professionalism of Unipro PJSC employees and its wise management system at all levels will enable us to secure all of the targets we have set.

Dear shareholders! On behalf of all employees of Unipro PJSC, I would like to express my gratitude for your trust. Your active support will enable us to succeed in meeting the Company’s targets.

Best regards,
Maxim Shirokov,
Chief Executive Officer,
Unipro PJSC