Today at the central office of the Interfax agency a press conference was held on the topic: “Transformation of PJSC“ MOESK ”: from a grid organization to an energy services company. Current performance and expected results for 2019; strategic initiatives until 2024.

The Director General of "Rosseti Moscow Region" Company (PJSC "MOESK") Petro Sinyutin and the First Deputy General Director for Financial and Economic Activities and Corporate Governance Vladimir Myasnikov announced the intermediate production and financial results of the company, outlined strategic directions for the medium term, presented forecasts according to the expected results of 2019. After that, 30 media outlets in Moscow and Moscow Region answered the questions of journalists.

The main emphasis was placed on the presentation of strategic initiatives of the company in the future until 2024: business transformation and transition to services of a new quality and technological level, digitalization, ensuring stable growth in financial performance and investor confidence. Their implementation will create new points of growth and competitiveness of the company’s business, will provide acceptable stable levels of dividend and shareholder returns for investors.

Top management of the company presented plans to increase the sales of non-tariff services from 2 billion rubles to 18.6 billion rubles and net profit from 1.1 to 4.9 billion rubles by 2024. In this case, it is assumed not only quantitative, but also qualitative growth: By 2024, the share of high-tech services in net profit is expected to increase to 50%.

The topic of implementation of a large-scale program aimed at digital transformation of the electric grid complex of the company was also touched upon. With the prospect of completion by 2024, work is underway on 13 projects. In addition to implementing fundamental projects aimed at creating digital areas of electric networks, introducing digital technologies into the daily work of operational and dispatching personnel, the company relies on improving interaction with customers. In particular, it is planned to release the corresponding mobile application, which will provide a whole range of services with one click.

Thus, by 2024, the company expects a 25% increase in revenue to 199.2 billion rubles, a three-fold increase in net profit, to 14.6 billion rubles. An increase in EBITDA by 2024 is expected to be 40%, to 53.4 billion rubles, and the rate of return on invested capital (ROIC) is higher than the weighted average cost of capital

Since the beginning of 2019, the company has shown consistently high financial results. In particular, net profit increased by more than 60%. The financial results for 2019 are expected to be no less reflected in the business plan.

“The strong financial results of the first half of the year and expectations for the year allow the company to switch to the practice of paying interim dividends,” Peter Sinyutin told reporters.

The Strategy Committee under the Board of Directors has already recognized that it is appropriate to pay interim dividends for the first 9 months of 2019 in the amount of at least 50% of the planned annual dividend amount. It remains to wait for the decision of the Board of Directors, the implementation of which is planned in the near future.