The Gazprom Neft Board of Directors has reviewed information on the company’s implementation of its 2016 investment programme and budget. Total expenditure on the company’s investment programme last year was RUB370,7 billion.
The company’s net profit was up 82.5 percent on 2015, reaching RUB200.2 billion, with its year-end results showing the company leading the Russian oil sector on key performance indicators including Return on Average Capital Employed (ROACE). Total production volumes were up 8.2 percent on 2015, reaching 86.20 million tonnes of oil equivalent (mtoe) — the most significant production growth in Russia. Refining volumes were 41.89 million tonnes: an optimum volume under the current maturing market and pricing environment. Despite a general decline in market activity, Gazprom Neft increased sales of high-tech bitumen products and lubricants, as well as expanding its own fuel supply network at Russian airports. Total sales of oil products through the company’s filling station network were up 2.9 percent on 2015, to 10.45 million tonnes. Year-end results for 2016 show the company maintaining its leading position in the domestic market in terms of average station sales, at 19.3 tonnes per day.
The Board of Directors also reviewed various issues relating to preparations for the Annual General Meeting of Shareholders (AGM), recommending dividend payments for the 2016 financial year in the order of RUB50.64 billion (or RUB10.68 per ordinary share) — a record for Gazprom Neft and equivalent to 25.3 percent of the company’s FY16 net profit of RUB200.2 billion (IFRS). The company is expected to confirm those individuals entitled to receive dividends by 26 June 2017.
The Board of Directors also nominated AO PriceWaterhouseCoopers Audit as the company’s auditors for the 2017 financial year, subject to confirmation by the AGM.
As approved by the Board of Directors, the Annual General Meeting of Shareholders in Gazprom Neft will take place in St Petersburg on 9 June 2017. A list of those individuals entitled to attend the AGM will be compiled on the basis of official records of holders of registered securities as at close of business on 15 May 2017