generating records annual report 2014

Address
by General Director

Yevgeny Romanov General Director
of Rosenergoatom Concern OJSC

Dear Sirs and Madams,

I am pleased to present you the seventh integrated Rosenergoatom Concern Annual Report describing the main results of operations in the year 2014. The report covers financial, production, social, and environmental aspects of the Concern’s activity and has been put together by a big team of technical specialists and managers in accordance with the best practices and best Russian and international reporting standards.

For several years in a row the Concern has been holding a leading position among the largest Russian energy companies in terms of volumes of electricity production. In 2014 the Concern achieved the record output of 180.5 bln kWh which amounts to 104.8% of the production in the previous year. The balance of the Federal Tariff Service was fulfilled by 107.3%.

Optimization of the repair campaign, reduction of timelines for scheduled repairs, work on recovery of graphite stack resource characteristics in RBMK reactors, and operation of generating power units of the VVER type at increased capacity (104% of the nominal) made the most important contribution to exceeding the FTS balance. In general terms the 2014 repair campaign was carried out on a higher level as compared to 2013. The aggregate reduction of repair timelines of generating power units in 2014 amounted to 158.5 days (in 2013 the planned duration of repairs was exceeded by 25.8 days). The program for resource characteristics recovery of generating power units of RBMK reactors was implemented successfully. In 2014 the operations on generating power units No. 2 of the Kursk NPP and No. 2 of the Leningrad NPP were completed. Both repairs were performed in accordance with duration target values – within 180 days.

THE LAUNCH OF THE GENERATING POWER UNIT NO. 3 OF THE ROSTOV NPP BECAME ONE OF THE PRINCIPAL ACHIEVEMENTS OF THE YEAR FOR THE ENTIRE RUSSIAN NUCLEAR INDUSTRY. THE EVENT TOOK PLACE ON DECEMBER 27, 2014 AND BECAME TWICE AS VALUABLE FOR THE CONCERN WHICH IS AN ORDERING CUSTOMER OF NEW GENERATING POWER UNITS BECAUSE THE LAUNCH WAS INITIALLY SCHEDULED FOR 2015.

One of the challenges of our construction sites lies in increasing efforts in order to ensure a safe work environment and reduce the injury rate. Although the overall injury rate at the Concern is the lowest in the nuclear industry, construction sites of our subcontractors leave room for improvement. We are well aware of it and are implementing integrated system of labor protection which brings along actual results.

The Concern confirms its reputation as a socially responsible company. In 2014 the Concern spent 2.6 bln rubles on its social policy. Yet another record was achieved in construction of housing for our employees – 870 apartments were put into service. The Neptun swimming pool was put into service in the city of Zarechny (Sverdlovsk Oblast), a stadium and a sports complex became operational in the city of Novovoronezh where the first All-Russian Rural Sports Games were held.

Striving to diversify the business, the Concern continues mastering new lines of development, including the global market. We have become an active player in the sales market: in the reporting period AtomEnergoSbyt has won competitive tenders and received the status of a guaranteed supplier in four regions – Kursk, Smolensk, Tver, and Murmansk Oblast. We keep on working to make sure our subsidiary Rusatom Service can efficiently enter the global markets.

THE SUCCESSFUL RESULTS OF THE YEAR 2014 WOULD BE IMPOSSIBLE WITHOUT A HIGHLY PROFESSIONAL TEAM OF THE CONCERN. WE AIM TO MAINTAIN AND INCREASE THE ACHIEVED RATE OF DEVELOPMENT. WE HAVE SET OURSELVES A CHALLENGING TASK TO PRODUCE MORE THAN 189 BLN KWH OF ELECTRICITY IN 2015.

I am sure that the Concern will make every effort to complete the ambitious goals set by Rosatom State Corporation and the state, and this work will contribute to the further development of our competitive advantages both in domestic and international markets. We are confident that our work on increasing labor efficiency to the level of the best international practices will help us achieve the goals. Guided by the principles of responsibility, professionalism, and mutual trustin general and in our interaction with the stakeholders, we will be able to ensure sustainable development of the Concern in the long-term perspective.