“SAMRUK-ENERGY” JSC | Integrated ANNUAL REPORT

“Economic” category

Created and distributed economic value

Economic performance of the Company is shown in created and distributed economic value table.

The created economic value present the main sources of the Company’s income, namely, income from electricity production, transmission and sale, as well as from the sale of coal and obtained remuneration.

The created value is distributed between suppliers and contractors, employees of the Company, shareholders and lenders, the state, as well as local communities.

Distributed economic value

 

Payments to suppliers and contractors

Operating expenses – payments to counterparties for materials, product components, equipment and services, rental payments

Payments to employees

Payroll, social taxes and contributions, pension and insurance payments. expenses for medical services for employees and other forms of employee support

Payments to capital suppliers

Dividends to all categories shareholders and interest paid to lenders

Payments to the Government

Tax payments

Investments to local communities

Donations to charitable and non-governmental organizations and research institutions, expenses for supporting public infrastructure, as well as direct funding for social programs. cultural and educational activities

According to results of 2018, the created economic value amounted to 353 bln. tenge and the distributed economic value amounted to 273 bln. tenge, as a result, the undistributed economic value amounted to 80 bln. tenge. According to the approved Development Plan for 2019–2023, the created and distributed economic value is planned to be increased in 2019 and 2020.

mln. tenge

Indicator*

2017

2018

2019

2020

Actual

Actual

Forecast

Forecast

Created economic value

349,242

352,681

366,548

370,773

Sales proceeds

346,563

351,100

366,209

369,586

Interest received

2,679

1,581

338

1,187

Distributed economic value

280,258

272,860

319,526

325,656

Payments to suppliers and contractors

174,610

161,571

186,122

201,408

Payments to employees

40,964

37,210

36,652

37,415

Payments to capital suppliers

31,033

34,047

45,967

34,884

Payments to the government

33,531

39,617

50,497

51,768

Investments in local communities

121

415

289

181

Undistributed economic value

68,984

79,822

47,021

45,117

* Previously indicators were calculated on an accrual basis. In order to exclude non-cash transactions and depreciation, current indicators were calculated using the data of the cash flow statement. Ownership interests in joint ventures were taken into account in the figures.

Aspect “Development of innovation and operating efficiency”

As of today, several projects aimed at increasing the efficiency of operations are implemented as part of fulfillment of the Company’s innovative development program, those include:

  1. Digital power plant. The project provides for the possibility of introducing a centralized collection of production and technological data, remote monitoring and forecasting of production processes and the technical condition of components, assemblies, equipment and systems for monitoring production processes of subsidiaries and affiliates (digital control room) based on production and technical platforms. This will allow obtaining reliable data and ensuring the autonomy of processes, excluding the human factor in production. The pilot project will be implemented at “Ekibastuz SDPP-1” LPP.
  2. Research on the possibility of using fluidized bed and circulating fluidized bed technologies for firing high-ash coal (50 % ash or more coal – coal seam No. 3 of the Ekibastuz deposit and depleted coal / coal by products) is conducted jointly with Nazarbayev University.

Expected outcome:

  • development of technology and analysis of the prospects of the use of fluidized bed technologies for burning of high-ash coal;
  • reduction of fuel consumption and air emissions compared with conventional coal combustion;
  • complete firing of fuel, without leaving the combustion process in the gas space above the fluidized bed and the loss of significant amount of heat with unreasonably overheated flue gases.
  1. The system of fuel oil free start-up of boiler implies the equipping of a plasma-fuel system (PFS), which will allow solving the following tasks:
  • stabilization of the combustion of a pulverized coal torch at reduced loads of boiler units;
  • elimination of fuel oil consumption in the flame combustion of low-grade coals;
  • elimination of the negative effects of co-firing of coal and fuel oil in one furnace volume, which lead to a decrease in the efficiency and reliability of the boiler.

This technology is successfully used in the People’s Republic of China, the Russian Federation, Indonesia, etc. at power units from 200 to 1000 MW.

  1. In the context of its Development Strategy, “Samruk-Energy” JSC plans to increase coal business of “Bogatyr Komir” LLP through the introduction of coal preparation technology. R & D was conducted in 2016 by the order of “Samruk-Energy” JSC, in the course of which an analysis of the technical feasibility and investment feasibility of work in this area was carried out. As a result, it was determined that the promising project will have positive investment indicators for the enrichment of Ekibastuz coal to a calorific value of 5 500 kcal / kg.
  2. The implementation of the “Digital coal mine” project provides for automatic monitoring of the operating parameters of the mining equipment of an open-pit coal mine (weight of the cargo being transported, location, technological condition, speed. pressure and temperature in tires. etc.), automation and analytics of the daily change of dump trucks: the number of trips, freight turnover, engine hours, mileage, fuel consumption, automatic control and analysis of the production discipline of drivers and operators of mining and mining transport equipment: downtime, start and finish time. As well as the creation of a unified automated system for managing the production and shipment of coal, processing and analyzing digital coal mine data in real time: using drones for visual, thermal, radiation monitoring; topographic and geodetic surveys and mine-surveying works; 3D modeling and data access; integration of all subsystems in a single data center.

Aspect “Energy Efficiency”

The Company’s Management Board approved the Energy Conservation and Energy Efficiency Program. The program is a fundamental document for planning and implementing activities in the field of energy conservation and energy efficiency.

The purpose of this program is to develop measures for rational and economically feasible use of fuel and energy resources based on the use of innovative technologies.

As part of ongoing work on energy conservation and energy efficiency, 75 activities aimed at reducing consumption of fuel and energy resources were implemented last year, which allowed saving 35 thousand tons of reference fuel.

Energy consumption within the organization

There is a decrease in total fuel consumption in 2015–2016 compared to base 2014. In 2017 and according to results of 2018, the growth of fuel (coal) consumption is associated with an increase in the production of electricity by “Ekibastuz SDPP-1” LLP for export supplies to the RF.

The total energy consumption has a steady decline during 2015–2018, in terms of both electricity consumption and heat consumption.

Consumption within the organization

2014

2015

2016

2017

2018

Total fuel consumption. 106 GJ, incl:

272.6

225.4

225.5

285.2

310.5

Coal

244.4

199.1

196.1

254.8

298.1

Gas

24.7

23.6

27.3

28.4

10.0

Fuel oil

2.0

1.3

0.8

0.7

1.2

Petroleum

0.3

0.3

0.3

0.2

0.2

Diesel

1.3

1.1

1.0

1.1

1.2

Total electricity consumption, 106 GJ

14.0

12.8

12.5

13.0

11.8

Total heat consumption, 106 GJ

3.7

3.0

2.7

2.6

2.7

Total electricity consumption, 106 GJ

17.7

15.8

15.3

15.6

14.5

Energy intensity

The volumes of fuel and energy resources consumption within the organization, as well as the volumes of electricity and heat produced, electricity transmitted and coal produced were used in this indicator.

The energy intensity of the gross commercial product across “Samruk-Energy” JSC group of companies as of the end of 2018 amounted to 29.7 tons of reference fuel/mln. tenge.

Energy intensity

The reduction of energy consumption

There is a decrease in total energy consumption over years in relation to base 2014.

Consumption of electricity decreased both in relation to the base and in relation to last year and amounted to 11.8*106 GJ.

Heat consumption also decreased in relation to the base year and amounted to 2.7*106 GJ.

The reduction in total energy consumption was driven by reduction of energy use for power plant needs.

Total energy consumption, 106 GJ