Value of the Company as an Object of Management and Increase of Competitiveness of Russian Energy Corporations

Leonid V. Kalimullin – Head of Strategic Development, RusHydro, PhD in economics (Moscow, Russia). Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Ekaterina S. Tuzikova – Head of Investment Analysis, RusHydro, CFA (Moscow, Russia). Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

The challenges faced by Russian electric power companies require a systematic implementation of a cost – based approach to management, ensuring focus of management processes and decisions to maximize their value. Comprehensive value management system has following key features: main strategic documents of the company include measures promoting intrinsic value growth, medium-term documents include activities that increase the future positive cash flow, communications and corporate governance quality increase is featured as a priority, system of key performance indicators and motivation of the company’s management is attached to company value indicators.

Key words: value management, market capitalization, company value, intrinsic value, energy companies, utilities.