OJSC "KEGOC" (Kazakhstan): characteristics of the risks

/IRBIS, June 27, 00/ - Following are brief characteristics of the risks associated with the activities of OJSC "KEGOC". It is made by the data of the company presented to Kazakhstan stock exchange (KASE), Listing commission of KASE and published to due to the fact that the bonds of OJSC "KEGOC" were entered into KASE official list of securities under category "A". Economic risks. The activities of OJSC "KEGOC" are to a certain degree depend on the changes in tariffs on electricity and on offering discounts to the consumers of electricity in coordination with Antimonopoly committee, changes in tax policy of the state, as well as on inflow of money for electricity used by the consumers, which is affected by seasonal fluctuations. Risks related to technical factors. Average life of the grid and equipment owned by OJSC "KEGOC" is 27-48 years. Fixed assets account for 86% of all assets of the company, with the most of them being obsolete and worn out, which may make the company to default on its obligations to its customers for transmission of electricity followed by payments of fines and subsequent malfunctioning of national power grids. Risks related to competition. The company is a natural monopoly in transmission of electricity, therefore this risk factor can be considered insignificant. Environmental risks. This type of risks are almost absent as well, because OJSC "KEGOC" does not threaten the environment when it works. This given list of risks is not complete. As financial statements of the company show, one of the most significant risks, that accompany OJSC "KEGOC", is the risk of non-payments.