Gazprom Neft Annual General Meeting held 6 June 2014

Press-release

JSC Gazprom Neft held its Annual General Meeting on 6 June 2014; shareholders adopted the 2013 Annual Report and Accounts.

Results for the 2013 financial year confirm JSC Gazprom Neft’s position as a market leader in terms of production growth — the result of optimising the development of existing assets, the proactive implementation of cutting-edge technologies, and improvements to the company’s asset portfolio, all of which have resulted in a 4.3-percent increase in production volumes, to 63.3 Mtoe. The past year has seen a landmark development in exploration and production, with commercial production commencing at the Prirazlomnoye field, Pechora Sea — the first project in the world to extract hydrocarbons on the Arctic Shelf, from a stationary sea platform.

Gazprom Neft Annual General Meeting

A key achievement in the refining sector in 2013 was the switch-over of all refining facilities to the production of Euro-5 low-emission fuels, two years ahead of regulatory requirements. With the quality improvement programme for refined products now complete, the company has been able to progress to the second phase of modernising its refining capacity — the results of which should, in the next few years, see improvements in refining depth to 94 percent.

The sale of petroleum products through premium sales and distribution channels grew by almost five percent (reaching 23.9 million tonnes) in 2013, with bunkering, sales of aviation fuels (kerosene), motor fuels and lubricants proving the most significant growth sectors. Sales of petroleum and diesel fuels also showed particular growth. Average daily sales at Gazprom Neft filling stations grew by eight percent, reaching 19 tonnes — a record high in the domestic oil industry.

Gazprom Neft Chairman of the Management Board Alexander Dyukov commented: “The past year has, again, seen Gazprom Neft lead the market on the basis of various management indicators — including, in particular, growth in operating and net profit. The company also leads the market in terms of dividend income for shareholders. Dividend payments have not only increased in comparison with last year (rising from 22 to 25 percent), but payment of interim dividends has also been introduced. Gazprom Neft’s priorities to 2025 remain maintaining the company’s leading position in implementing production projects, development of the Arctic Shelf, the modernisation of refining facilities in Russia, and proactive development abroad. All of which will enable us to continue to build shareholder value.”

On the basis of 2013 year-end results shareholders confirmed the recommendation of the Board of Directors that dividends be paid in the order of 25 percent of consolidated net profits (IFRS), amounting to RUB44.47 billion or RUB9.38 per ordinary share (taking into account dividends paid on the basis of the first half of the 2013 financial year). Dividend payments for the 2013 financial year are likely to exceed 2012 levels by almost RUB380 million.

The following have been elected to the Gazprom Neft Board of Directors:

  • Alexei Miller, Chairman of the Management Committee, JSC Gazprom; Deputy Chairman of the Board of Directors, JSC Gazprom;
  • Vladimir Alisov, First Deputy Head of the Legal Department, JSC Gazprom;
  • Nicolai Dubik, Member of the Management Committee, JSC Gazprom; Head of the Legal Department, JSC Gazprom;
  • Marat Garaev, Deputy Head of the Gas and Liquid Hydrocarbons Marketing and Processing Department, JSC Gazprom; Head of the Industrial Output Marketing Division;
  • Valery Golubev, Deputy Chairman of the Management Committee, JSC Gazprom;
  • Alexander Dykov, Chairman of the Management Board, JSC Gazprom Neft;
  • Andrei Kruglov, Deputy Chairman of the Management Committee, JSC Gazprom; Head of the Department for Finance and Economics, JSC Gazprom;
  • Elena Mikhailova, Member of the Management Committee, JSC Gazprom; Head of the Asset Management and Corporate Relations Department, JSC Gazprom;
  • Kirill Seleznev, Member of the Management Committee, JSC Gazprom; Head of the Gas and Liquid Hydrocarbons Marketing and Processing Department, JSC Gazprom;
  • Valery Serdukov, Independent Director;
  • Mikhail Sereda, Deputy Chairman and Head of Administration of the Management Committee, JSC Gazprom;
  • Sergey Fursenko, Independent Director;
  • Vsevolod Cherepanov, Member of the Management Committee, JSC Gazprom; Head of Gas, Gas Condensate and Oil Production Department, JSC Gazprom.

A number of other issues were also reviewed during the course of the Annual General Meeting.