At its meeting on Nov. 21, 2002, in Lenenergo's head office in St. Petersburg, Russia, the company's board of directors met to discuss the restructuring plan that was previously approved by the Russian government's Energy Reform Commission in October 2002. Among other issues on the agenda were the company's business plan and the investment program for 2003.

The board was briefed on the nine months' results of the company's operations. The electrical power output in the first nine months of 2002 is up by 6% to 11,717.47 million kWh, compared to the same period last year.

The gross profit for the first nine months has grown up by 32.5% to RUR 15 billion (Euros 470 million). The gross income has increased by 5.5% to RUR 1.29 billion (Euros 40.4 million). The company's debtors have decreased by RUR 949 million (Euros 29.6 million), while the company's creditors have been reduced by RUR 2.02 billion (Euros 60 million).

In addition, the board was updated on the forecast growth of financial indicators in the company's business plan for the current year. According to a business plan previously approved by the board, in 2002 the company was estimated to make a profit of RUR 1.27 billion (Euros 39 million). This figure is now expected to grow to RUR 1.6 billion (Euros 50 million). The 2002 gross profit for the year in full is expected to reach RUR 22.43 billion (Euros 700 million).

The board also approved the main indicators of Lenenergo's business plan and the investment program for 2003. According to these documents, the company's gross profit will have reached RUR 25.83 billion (Euros 807 million), up by 15%, while the investments will have reached RUR 3.7 billion (Euros 115 million), up by 42%. One-third of all the investments in 2003 will go toward the main company's project in St. Petersburg, the construction of the thermal power plant TPP-5.

JSC Lenenergo is the largest utility in northwest Russia, with a franchise of 6.4 million people in St. Petersburg, Russia's second largest city and Leningrad region covering 85,900 sq km (33,166 sq miles). The company generates, transmits and distributes energy at its 15 power plants, delivering almost 100% of electricity and more than 55% of the heat consumed regionally.
Circle 154 on Reader Service Card or visit freeproductinfo.net/tdw