Integrated annual report | Samruk-Energy JSC

About the Company

In order to implement the long-term state policy on modernization of existing and commissioning of new generating facilities, “Samruk-Energy” JSC joint-stock company was established on April 18, 2007 by resolution of the General Meeting of Founders. The founders of the Company at the time of its establishment were “Kazakhstan Holding for Management of State Assets “Samruk” JSC (94.01%) and “KazTransGas” JSC (5.99%).

“Samruk-Energy” JSC was registered on May 10, 2007.

9 companies of “Samruk” KHMSA and 7 companies of “KazTransGas” JSC were transferred for governance by the Company for daily management of electric power assets and for implementation of coordinated state policy in the industry.

Organizational structure of energy assets management as for 2007

On November 3, 2008 as a result of reorganization effected by the merger of Kazakhstan Holding for Management of State Assets “Samruk” JSC and “Kazyna” Sustainable Development Fund JSC “Samruk-Kazyna” Sovereign Wealth Fund, which is the legal successor of “Kazakhstan Holding on Management of State Assets “Samruk” JSC became the Company’s shareholder; “KazTransGas” JSC also remained as one of shareholders.

In 2008–2011, “Samruk-Energy” JSC included a number of companies, among them: “Bogatyr Komir” LLP, which owns the world’s largest coal mine, as well as “Ekibastuzs SDPP-2 Plant” JSC, “Ekibastuz SDPP-1 named after Bulat Nurzhanov” LLP, “Aktobe Thermal Power Plant” JSC, “Zhambyl SDPP named after T.I. Baturov” JSC, “Alatau Zharyk Company” JSC, “Almaty Power Plants” JSC, “Shardarinsk HPP” JSC.

“Samruk-Energy” JSC shares held by “KazTransGas” JSC were transferred to “Samruk-Kazyna” SWF JSC on August 29, 2010 by the Decree of the Republic of Kazakhstan Government No. 1103 thus, “Samruk-Kazyna” JSC is the sole shareholder of the Company since 2010.

Over 10 years, the Company has done significant work on reorganizing of “Samruk-Energy” JSC group of companies. New assets were acquired and established, the companies were liquidated to reduce the level of management, constant improvement took place, and asset management has been improved.

The Company constantly prepares portfolio companies in accordance with the best international practices. During the management period, the Company has been built Balkhash TPP, the capacity of Ekibastuz SDPP-2 has increased, the companies “Samruk-Green Energy” LLP, “First Wind Power Plant” LLP were created to generate renewable energy sources, actions aimed at resuming wholesale sales of electricity to neighboring republics were taken. The company invested in the development of new generating facilities in Almaty region, put into operation RE facilities.

At the beginning of 2017, the group of companies numbered 36 companies in the electricity sector in various areas of activity. In 2017, the Company carried out significant work on the reorganization of the Company’s group. 7 of 10 companies registered in Cyprus were liquidated by way of merger, they were: Mersal Coal Holdings Ltd, Manetas Coal Holdings Ltd, Grasedol Coal Holdings Ltd, Bleson Coal Holdings Ltd, Wexler Ltd.

As part of the implementation of the Decree of the Government of the Republic of Kazakhstan dated December 30, 2015 No. 1141 “On some matters of privatization for 2016–2020”, deals on sale of equity stake of “East Kazakhstan Regional Energy Company” JSC, “Mangistau Electricity Distribution Network Company” JSC and “Aktobe CHP” JSC were completed. Actions on privatization of assets were conducted in accordance with the Uniform Rules for Sale and Restructuring of “Samruk-Kazyna” JSC assets and were implemented through an open two-stage tender, information on which was posted on the Company’s website and in the media.

Thus, as of December 31, 2012, the portfolio of companies of “Samruk-Energy” JSC comprises the following enterprises.

Business model

Coal mining and sale

“Samruk-Energy” JSC owns the Republic of Kazakhstan’s largest coal mining company “Bogatyr-Komir” LLP (50%) and trading company “Resursenergougol” LLP, which exports to the Russian Federation. Most coal mined by the company is supplied to power plants of the “Samruk-Energy” JSC group companies, other power plants of the Republic of Kazakhstan and Russian Federation, and local utility companies

Generation

The Group of Companies owns 31% of available RK facilities. The group also includes genera ting assets such as “Ekibastuz SDPP-1” LLP, “Ekibastuz SDPP-2 Plant” JSC, “Аlmaty Power Plant” JSC, “Moynak HPP” JSC, “Aktobe СHP” JSC, “First Wind Power Plant” LLP, “Shardarinsk HPP” JSC, and other generating companies, accounting in total for over 28% of total electricity generated in the Republic of Kazakhstan.

Wholesale market

The electricity wholesale market is represented by generating companies of national importance, as well as large consumers, including: “KEGOC” JSC, “AstanaEnergoSbyt” LLP, “Kazfosfat” LLP, “AlmatyEnergoSbyt” LLP, “Temirzholenergo” LLP, “Kostanay Energy Center” LLP, “Ontustik Zharyk” LLP, “Kokshetau Energy Center” LLP, “Bogatyr Komir” LLP, “Zhetysu Energy Trade” LLP and other large consumers

Transmission, distribution

Electricity is transmitted and distributed primarily via main networks of “KEGOC” JSC and networks of regional energy companies. “Samruk-Energy” JSC group includes regional distribution company such as “Alatau Zharyk Company” JSC with the volume of electricity transmission – 6,527 million kWh

Retail market

The electricity retail market is represented by energy-selling companies (ESC). ESCs sell electricity to the population, SMBs, and other public, industrial and institutional consumers. Under bilateral agreements, ESCs buy electricity from generating companies and sell it to retail consumers, having also signed bilateral agreements with them. The “Samruk-Energy” JSC group includes one ESC: “AlmatyEnergoSbyt” LLP  with the volume of electricity sales – 5,767 million kWh

Export

Electricity exports to the totaled 4.7 billion kWh Coal exports to the totaled 9.1 million tons

Structure of assets