At present, in comparison with foreign peer companies,
“Samruk-Energy” is inferior in respect to certain indicators.
Financial stability indicators shows that Samruk-Energy fully
uses available financial leverage.
At the same time, according to EBITDA margin, Samruk-Energy
outcompetes its peers. This indicator demonstrates a high
profitability of sales. As regards ROIC (return on long-term
invested capital), Samruk-Energy is at the same level with its
European peers. At the same time, in terms of this indicator,
Samruk-Energy is significantly inferior to the Russian holding
company, characteristics of business of which are identical due
to the similarity of economic conditions of operations, which
indicates about the need to increase the efficiency (profitability,
return) of investments.
At the same time, it should be noted that “Samruk-Energy” JSC
is an agent of the state policy in power sector. In this
connection, as well as with a high degree of depreciation
of energy sector, socially significant investment projects (aimed
at reliability and continuity of the energy system of the Republic
of Kazakhstan) have been implemented since 2009, which led
to a significant increase in invested capital and respectively
decreased the company’s return on investments indicator.
An additional factor that influences on the return on investment
indicators is the low level of the electricity tariff in the Republic
of Kazakhstan in comparison with the countries of peer
companies.
“Samruk-Energy” JSC is faced with the task of creating
a balanced development model, which includes the optimal
ratio of energy supply to domestic consumers and exports,
combining high economic efficiency, innovative improvement
and advanced standards of social responsibility
The implementation of “Samruk-Energy” JSC investment
projects is a tool to achieve the strategic mission
of the company and allows meeting the growing demand
of Kazakhstan in electricity and capacity, increasing the export
potential of the Republic.
The investment program of “Samruk-Energy” JSC is
aimed at modernization, reconstruction and construction
of generating facilities, as well as ensuring reliable energy
supply and meeting the needs for electricity and heat.
The investment program is financed using own funds, debt financing of international financial organizations and second-tier
banks of the Republic of Kazakhstan.
Effective portfolio management of investment projects
provides the Company with the opportunity to create long-term
value of the portfolio of investment projects of the Company,
as well as implement projects in a competitive and rapidly
changing environment.
The portfolio approach to investments is focused on careful
selection, prioritization, even distribution and exit from
investments in accordance with the strategic goals and priorities
of the Company and market opportunities. Efficient portfolio
management allows the Company to achieve tangible results,
ensures coordination of activities with the Development
Strategy, and also integrates it with investment decisions
and operational characteristics, making it possible to improve
planning and allocation of resources and analyze investment
decisions.
In 2019, the portfolio of completed projects was supplemented
by the investment project “Construction of 416 kW SPP
in Kapshagay city”. A 416 kW solar power plant in the city
of Kapshagay was built using photovoltaic modules based
on Kazakhstan silicon produced by “Astana Solar” LLP.
Implementation of the project will allow producing an additional
0.5 mln. kWh of electricity per year.
The aim of the project is
the production of electricity using renewable energy sources
to provide electricity to the energy-deficient southern zone
of Kazakhstan.
The portfolio of ongoing investment projects of the Company
includes 8 investment projects, the implementation of which
will enable to make up the deficit of Kazakhstan in electricity
and capacity by increasing the installed capacity of available
plants and establishing new facilities.
The project “Transition to cyclical-and-continuous
method (CCM) for extraction, transportation, blending
and loading of coal at “Bogatyr” open-pit coal mine
of Ekibastuz coal field”
CCM project assumes a step-by-step transition of the «Bogatyr»
mine to the cyclical-continous technology of coal mining
and delivery by conveyor transport to the blending warehouses
with subsequent loading on the surface loading units. The need
to implement the project is related to the achievement
of the depth of mine works, at which the use of rail transport
becomes less effective.
The implementation of the project will allow increasing
the production capacity of “Bogatyr” open-pit coal mine from
32 to 40 mln. tons of coal per year, improving labor productivity,
reducing cost of coal mining and upgrading premises
and equipment relating to transportation and unloading of coal.
In 2019, the project entered an active implementation
phase, which involves construction and installation works
and equipment manufacturing.
The project «Development of the gas field «Pridorozhnoe»
The project provides for the construction of infrastructure
for the production of natural gas for sale to domestic
and foreign markets. The project also plans to build a highpressure
gas pipeline from Pridorozhnoe field to the Beineu –
Bozoy – Shymkent gas pipeline.
The aim of the project is to cover the deficit of gas demand
in the South Kazakhstan region of the Republic of Kazakhstan,
with the maximum annual gas production amounting to about
290 mln. m3.
Project «Modernization of Shardarinsk HPP»
The Project involves the replacement of obsolete and wornout
equipment to improve performance and operational
safety of the plant, which will increase the installed capacity
to 126 MW and produce an additional 57 mln. kWh of electricity
per year.
Hydraulic units No. 1 and No. 2 were commissioned in 2019.
Pre-commissioning works at hydraulic units No. 3 and No. 4
are underway. The project is planned to be completed by 2020.
The project «Expansion and reconstruction of Ekibastuz
SDPP-2 with the installation of power unit No. 3»
The project provides for construction of power unit No. 3 with
an increase in the installed capacity of the plant by 636 MW
and the production of an additional 4,8 bln. kWh of electricity
per year.
The project was suspended until December 2019.
Reconstruction and expansion of the capacity
of Ekibastuz SDPP-1 (Restoration of power unit No. 1).
The project involves the restoration of 500 MW power unit
No. 1 at Ekibastuz SDPP-1 to meet the growing demand
for electricity.
According to the results of 2019, construction and installation
works are underway. The total volume of work performed
on the project is 44 %.
The project «Construction of a 50 MW wind power plant
near Ereymentau city”
The project provides for construction of a 50 MW wind power
plant near Ereymentau city. The implementation of the project
will allow for the additional production of more than
215 mln. kWh (increase in design capacity from 180 mln. per
year) of electricity per year. The project aims to use renewable
energy sources to reduce the level of use of hydrocarbon energy
carriers in production of electricity.
The design and estimate
documentation was developed in 2019.
The project is planned
to be completed in 2021.
The project «Construction of a 60 WPP in Shelek corridor
with possible increase in capacity up to 300 MW»
The project involves the construction of a 60 MW wind power
plant in Shelek corridor of Almaty region, Enbekshikazakh
district including a possible expansion of capacity up
to 300 MW. The project implementation will allow producing
additional 225.7 mln. kWh of electricity per year
The project
aims to use renewable energy sources to reduce the level of use
of hydrocarbon energy resources in electricity production.
The project’s design and estimate documentation was
developed in 2019, construction and installation works are
underway.
Project «Almaty CHP-2 of “APP « JSC
The main goal of the project on retrofit of existing Almaty CHP-2
is to reduce the negative impact on the environment of Almaty
city and the Almaty region. The project’s pre-feasibility study
was developed in 2018, where several implementation options
were considered.
Development of the feasibility study of the project began
in 2019.
Projects scheduled for completion in 2020
Activities under “Modernization of Shardarinsk HPP” project will
be completed in 2020. The project will increase the installed
capacity of the plant from 100 MW to 126 MW.
Projects scheduled for completion in 2021
It is planned to complete the construction of a 50 MW wind power
plant in the vicinity of Ereymentau city. The implementation
of the project will allow producing. The commisssioning of the
wind power plant is scheduled for the second half of 2021 over
215 mln. kWh of electricity per year additionally.
Also, it is planned to complete the project «Construction of a
60 WPP in Shelek corridor with possible increase in capacity up
to 300 MW.»
The Company regularly monitors key investment indicators
to make timely decisions by the management of the Company.
In order to promptly take corrective actions, investment
projects are subject to constant monitoring by the Company’s
Board of Directors.
The Government of the Republic of Kazakhstan initiated
“Economy of Simple Things” program in 2019.
This program
aims to ensure the purchase of goods of light, furniture, food
industries, as well as goods from building materials sector
only from domestic producers.
In this area, in 2019, “Samruk-Energy” JSC group of companies
provided the Holding company’s producers with orders
to the amount of 324,9 mln. tenge.
At the same time, “Samruk-Kazyna” JSC has actively
implemented a program for import substitution of goods since
2019.
The purpose of this program is to ensure the purchase
of goods subject to import substitution, with a suspensive
condition of delivery, from suppliers who have launched
the production of such goods in the territory of the Republic
of Kazakhstan.
The results of the work in 2019 are 6 concluded offtake
contracts with domestic producers for total amount
of 534.5 mln. tenge.
In general, in 2019, “Samruk-Energy” JSC group of companies
purchased goods from the Holding’s producers for a total
amount of 9,1 bln. tenge.
Moreover, in 2019, the total amount of contracts concluded
with organizations of persons with disabilities across “Samruk-
Energy” JSC group of companies amounted to 481 mln.tenge.
Category Procurement Management
In 2019, Transfomation program project “Category Procurement
Management” was transferred from the project to the operational
management of the Company. The process of category
procurement management involves the improvement
of procurement activities.
The concept of category procurement management is based
on a decrease in the total cost of ownership indicator, i.e. cutting
costs of GWS categories throughout the entire life cycle of its
ownership, and not just direct purchase costs, which allows
choosing the most up-to-date and cost-effective solutions.
Changes that are being introduced in procurement activities
contribute to lowering of procurement prices, improving
the quality of purchased goods, works and services, and promote
domestic producers.
Information on the share of local content, mln. tenge*
|
2019 actual |
| The total amount
of actually supplied
GWS |
% LC |
The total amount
of actually supplied
GWS |
% LC |
The total amount
of actually supplied
GWS |
% LC |
| Goods |
122 783,06 |
75% |
152 323,77 |
83% |
157 260,5 |
79% |
| Works, services |
149 580,49 |
80% |
153 420,06 |
88% |
153 998,2 |
81% |
*Note: “Samruk-Kazyna Contract” LLP data
Procurement category strategies were developed in 2019
for the categories “Pumps and Compressors”, “Industrial
Chemistry”. These strategies include conclusions made using
the analysis of past expenses, future needs, suppliers market
and business requirements.
As of today, the procurement category group developed 10
procurement category strategies during the introduction
and the actual economic effect is 2.5 bln. tenge.
The goal to cover at least 80 % of the cost of annual purchases
of managed categories by category management by 2022
has been set. To achieve this goal, it is necessary to develop
and approve 27 procurement category strategies. The potential
benefit from the implementation of procurement category
strategies is estimated at 4.4 bln. tenge.
It is worth noting that “Samruk-Energy” JSC’s procurement
category strategy “Oils and Lubricants” won in the nomination
“The best project on upgrading business processes
in procurement” in the competition on category procurement
management among specialists of the Fund’s companies,
which was held by the Competence Center of “Samruk-
Kazyna” SWF” JSC for the management of procurement
categories represented by the authorized body “Samruk-Kazyna
Contract” LLP.
In compliance with principles of procurement, the Company
continues focusing on monitoring the share of local content
in the procurement of goods, works and services.
