Letter from
the Chairman of
the Management Board

Dear readers,

Despite the ongoing COVID-19 impact, KEGOC continued to successfully implement its objectives of ensuring a reliable energy supply to consumers and maintained financial sustainability in 2021. Business continuity and efficiency were ensured. The technical maintenance campaign was completed in accordance with the approved schedule and the certificate of readiness for operation in the autumn-winter period 2021–2022 was received on time.

At the same time, the Company has worked productively with the power systems of neighbouring states to manage and ensure the sustainability of parallel operation, which in the current environment is also important for the sustainable operation of Kazakhstan’s power system.

According to KEGOC’s audited financial statements for 2021, the net income was KZT 52.6 billion, which was generated by the growing amount of regulated services. E.g., the amount of electricity transmission services increased by 18.4% to 54.65 billion kWh. Technical dispatching and electricity production-consumption balancing services also showed an average growth of 6% compared to 2020.

The Company’s shares showed steady growth and high liquidity in 2021. The price per share reached an all-time high of KZT 1,920, more than 3.7 times the offering price. The company paid two dividends to shareholders for a total (record) amount of about KZT 41.5 billion, of which KZT19.5 billion for 2020 and KZT 22 billion for the first half of 2021.

In the reporting year, an important area of focus was the implementation of investment projects aimed at improving the reliability of the national power grid of Kazakhstan, including Rehabilitation of 220–500 kV OHTLs at Aktyubinskiye MES branch, Sarbaiskiye MES branch and Zapadnye MES branch of KEGOC, Turkestan External Power Supply Reinforcement Project, and West Kazakhstan Electricity Transmission Reinforcement Project.

As part of Digital Kazakhstan state programme KEGOC completed the implementation of a multi-component smart grid project called “Automation of Mode Control of the Unified Power System of Kazakhstan”. At the same time, the Company continues to enhance project and process management, efficiency of operations, including through optimisation and use of data analysis. It is indicative that KEGOC won second place with this project in the second Qazaqstan Project Management Awards–2021 national competition.

In KEGOC we believe that the key asset are the people who make all the successes possible. And the update of the Collective Agreement between KEGOC and employees’ representatives for 2021–2025 was an important event in 2021. It incorporated the proposals for the improvement of favourable and safe working conditions and other wishes of the Company’s personnel. At the same time, comprehensive work continues to enhance working conditions, professional development and social support for employees.

The personnel in the reporting period traditionally demonstrated high engagement. As a result, the Social Stability Index of KEGOC operational personnel in 2021 (acc. Samruk Research Services) was 85% and the Engagement Index of the administrative and managerial personnel was also 85%.

To summarise the results of the past year supported KEGOC’s image of a reliable power grid company in the country, capable of solving large-scale strategic tasks.

In 2022, in order to further develop the unified power system and ensure reliable power supply, KEGOC will continue to implement the planned investment projects, including reconstruction of existing and construction of new transmission lines and substations taking into account the effective integration of renewables, work in the field of technological development of the power industry, introduction of real-time balancing electricity market. I am confident that the considerable experience accumulated by the administrative and operational personnel will enable the Company to achieve its strategic goals and objectives in line with the challenges of the times and the preservation of established values and traditions.