Gazprom Neft’s (the ‘Company’) Annual General Meeting of Shareholders took place on 11 June 2020, along with a full review of the Company’s activities throughout 2019. Shareholders approved the Board of Directors’ proposal that dividends for 2019 be paid in the amount of ₽37.96 per ordinary share (including dividends of ₽18.14 per ordinary share, paid in respect of 1H 2019 results). This dividend payment represents a record for the Company and a 26.5% increase on dividends for 2018 (at ₽30 per ordinary share).
For the first time, the Company is in a position to pay dividends at 50% of net profit (IFRS), dividend payments having reached 50% of net profit in H2 2019, following interim dividend payments of 40% of net profit for H1 2019. Gazprom Neft’s total dividend distribution for 2019 amounted to ₽180 billion. Net profit in 2019 increased by 6.2% year-on-year, to ₽400.2 billion.
The Company is expected to confirm those individuals entitled to receive dividends by 26 June 2020.
“The Company ended the 2019 financial year with some well-deserved results. Production volumes reached more than 96 million tonnes of oil equivalent (mtoe), with net profit reaching a record ₽400.2 billion. We continued to improve our business efficiency, maintaining our focus on safety, ecology, and developing new technologies. This approach has enabled us to face up to the challenges presented by 2020 — the COVID-19 pandemic, and the drastic reduction in both oil demand and oil price — in a viable and sustainable financial position, and with a low debt burden. In response to this different environment, Gazprom Neft has reduced its operating and production costs, optimised administrative expenses, and plans to make adjustments to its 2020 investment programme. In spite of these issues, we continue to implement key upstream and refining projects, maintain our key areas of focus, and intend to continue our practice of paying interim dividends.”Alexander Dyukov CEO and Chairman of the Management Board, Gazprom Neft
Gazprom Neft shareholders also confirmed the new composition of the Board of Directors, comprising 13 members, in addition to formally adopting the Company’s 2019 Annual Report and Accounts and considering a number of other items on the AGM Agenda.
The following have been elected to the Board of Directors:
- Alexei Miller, Chairman of the Management Committee, Deputy Chairman of the Board of Directors, Gazprom PJSC;
- Vladimir Alisov, First Deputy Head of Department, Gazprom PJSC
- Gennady Sukhov, Member of the Management Committee, Head of Department, Gazprom PJSC;
- Alexander Dyukov, Chief Executive Officer, Chairman of the Management Board, Gazprom Neft PJSC;
- Sergei Kuznets, Member of the Management Committee, Head of Department, Gazprom PJSC;
- Alexander Medvedev, Chief Executive Officer, member of the Board of Directors, FC Zenit;
- Yelena Mikhailova, Member of the Management Committee, Head of Department 105, Gazprom PJSC;
- Vitaly Markelov, Deputy Chairman of the Management Committee, Member of the Board of Directors, Gazprom PJSC;
- Sergey Menshikov, Member of the Management Committee, Head of Department, Gazprom PJSC;
- Famil Sadygov, Deputy Chairman of the Management Committee, Gazprom PJSC;
- Kirill Seleznev, Director General, Member of the Board of Directors, RusKhimAlyans;
- Valery Serdyukov, Independent Director (no positions held on management bodies of other organisations); and
- Mikhail Sereda, Member of the Board of Directors, Gazprom PJSC, First Deputy Director General, Gazprom Export.