Traded as MCX: IRAO Products Electrical power Founded 1997, Moscow, Russia | ||
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Revenue US$18.24 billion (IFRS, 2011) Stock price IRAO (MCX) RUB 3.71 +0.11 (+3.14%)13 Mar, 6:48 PM GMT+3 - Disclaimer Profiles | ||
Joint Stock Company Inter RAO UES (Russian: Публичное акционерное общество «ИНТЕР РАО ЕЭС», short form: Inter RAO), traded as, is a diversified energy holding company headquartered in Moscow, Russia. Its business includes power and heat generation, electricity supply, international energy trading, engineering, design and development of electric power infrastructure. In addition to Russia it controls several energy companies outside Russia including thermal and hydro power plants, grid operators and energy traders. It holds a monopoly on the export and import of electricity in Russia.
Contents
- History
- Owners
- Electricity generation
- Trading
- Power supply
- Electric power distribution grids
- Engineering
- References
Inter RAO is one of the largest Russian public energy companies by market capitalization which exceeded US$10.5 billion at the end of 2011. In fiscal year 2011 the company reported a revenue of USD 18.24 bn (versus USD 15.28 bn in 2010) and net income of $1.41 billion (vs $614 million in 2010). At the end of 2011, Inter RAO Group had more than 47,000 employees.
History
Inter RAO was established in 1997 as a subsidiary of the Russian unified power company RAO UES. Its initial focus was international energy trading.
In 2002, Inter RAO started exporting electricity from Russia and generating its own electricity using a rented power generation unit at Irikla Thermal Power Plant. In 2003, Rosenergoatom acquired a 40% stake in Inter RAO, and the company became the sole exporter of Russian electricity.
In 2005, Inter RAO made several acquisitions:
In the same year, Inter RAO co-founded Sangtuda 1 Hydroelectric Power Plant in Tajikistan. In 2006, Inter RAO Group acquired 100% stake in Electric Power Grids of Armenia.
In early 2008, Inter RAO obtainted listings on the Russian stock exchanges MICEX and RTS. As a part of its reorganization, Inter RAO received several Russian power generation facilities including Sochi Thermal Power Plant, North-West Thermal Power Plant, Ivanovo CCPP and Kaliningrad CHPP-2. In the same year, Inter RAO purchased the remaining 49% stake in Moldavskaya GRES.
In following years, the Government of Russia transferred the power companies shares remaining after the reform of RAO UES in the property of state-owned companies RusHydro, FGC UES, Rosimushchestvo, and Rosneftegaz to Inter RAO. That included transfer of 41% stake in Irkutskenergo, 65.8% of OGK-1, 3.24% of OGK-4, 26.43% of OGK-5, 24.9% of TGC-6, 34.21% of TGC-7, 30.54% of TGC-11, 20.24% of Kuzbassenergo, 21.27% of Bashkirenergo, 14.48% of Sangtuda 1 Hydroelectric Power Plant (in Tajikistan), and 100% of Razdan Thermal Power Plant (in Armenia).
In 2009, Inter RAO shares were included in the MSCI EM Index. In the end of 2009, INTER RAO was ranked fifth in Standard & Poor's informational transparency rating of the Russian energy companies. At the same time, Inter RAO kept developing other lines of business, mainly engineering and power generation equipment. In 2010, Inter RAO established joint ventures with General Electric and WorleyParsons.
In 2011, INTER RAO started to design a unified management structure for its Russian power generation assets. In February 2011, Inter RAO established Inter RAO - Management of Electric Power Plants, a fully owned subsidiary appointed as a sole executive authority of OGK-1, OGK-3 and INTER RAO - Electric Power Plants (another subsidiary established in 2011 as a holding for North-West Thermal Power Plant, Kaliningrad CHPP-2, Ivanovo CCPP and Sochi Thermal Power Plant). In March 2012, Inter RAO announced that it will reorganize its Russian power generation assets and consolidate them under its Inter RAO - Electric Power Plants Subsidiary. As the result, all major Russian power plants owned by Inter RAO will be consolidated under a single entity.
Owners
Major shareholders of INTER RAO are Russian state-owned entities.
List of largest shareholders of INTER RAO as of February 26, 2014.
Boris Kovalchuk is the CEO of Inter RAO.
Electricity generation
Combined installed capacity of power plants operated by Inter RAO Group is approximately 28 GW. Inter RAO UES controls the following power generation assets.
Russian power generating assets
Power generation assets in other countries
Trading
Electricity import and export, as well as energy trading on the Russian wholesale electricity market are among the most important business lines of the company. In 2011, Inter RAO exported 22.7 billion kWh of electricity from Russia and imported 3.4 billion kWh of electricity to Russia in 2011.
The main export markets for INTER RAO are Finland, Lithuania and Belarus.
The following Inter RAO subsidiaries are responsible for international energy trading:
Power supply
Inter RAO Group operates seven Russian power supply companies. United Power Supply Company (UPSC) manages the majority of Group's sales assets with exception of RN Energo. INTER RAO's grid companies in South Caucasus also act as power suppliers.
Electric power distribution grids
INTER RAO Group controls two distribution grid companies in South Caucasus, Power Grids of Armenia and Telasi. The total length of transmission lines operated by INTER RAO Group grid companies exceeds 34 thousand km. The companies delivered more than 7.6 million kWh of energy in 2011.
Engineering
Inter RAO develops its engineering business as a key component of its integrated business model. In engineering, Inter RAO plans to focus on design of energy infrastructure, coordination of construction, delivery and installation of equipment; installation, configuration and maintenance services; and manufacturing of boiler and turbine equipment. The company asserts that these initiatives of its engineering business will help Inter RAO secure at least 20% of thermal power plant engineering, construction and equipment market. List of main engineering businesses within Inter RAO Group: