19 Dec 2017 07:08
Rosneft Board of Directors approved 2018-2019 business plan
Rosneft Board of Directors approved the plan of Company's financial and economic activities for 2018-2019 on an in-person meeting in Sochi.
Based on the actual production and financial data for the 9 months of 2017 and the management forecast for the fourth quarter, Rosneft management expects to implement the approved Company's business plan for 2017.
Despite the remaining market volatility and increasing fiscal pressure on the industry, the Company managed to deliver on the key parameters of the approved business plan, to maintain high operating efficiency and to intensify the development pace through the implementation of a number of highly efficient investment projects during the year.
Rosneft continued strengthening its position both on the Russian and the international markets in 2017, including via successful implementation of a series of asset acquisitions and via participation in the auctions for a number of licenses. In particular, the Company has set a new oil production hub on the basis of the Erginsky cluster in Western Siberia. Having successfully completed the integration of the acquired Bashneft group, the Company already achieved the synergy exceeding 45 billion rubles this year.
In the third quarter Rosneft successfully closed the deal to enter Essar Oil Ltd, one of the largest Refining, Commerce and Logistics companies operating in India, one of the world's fastest growing markets. The implementation of this project, as well as gaining an expanded access to substantial crude resources of the Kurdistan and Venezuela fields provided a stable basis for creating additional value through the integrated usage of various oil baskets, crude and oil products trading.
Rosneft's business plan for 2018-2019 targets implementing the key objectives of the "Rosneft-2022" Strategy, taking into account the synergetic effect of the assets acquired in 2017, commissioning new high-quality upstream projects in the north of the Yamalo-Nenets Autonomous District, at the Vankor cluster and in Evenkia and completing a number of highly complex facilities under the Company's refineries modernization program.
The plan ensures the balance of funding sources for the investment program, planned loan portfolio repayments and dividends in accordance with the approved dividend policy of the Company. The production program of Rosneft also takes into account the possibility of production volumes maneuvering in 2018 and financial leverage optimization.
Commenting on the results of the Board meeting, Rosneft Chief Executive Officer Igor Sechin said: "Rosneft once again proved its capabilities to implement the approved plans efficiently and timely despite the remaining high volatility on the global markets and the tightening illegal economic and technological sanctions imposed against the Company by a number of countries. These challenges are creating a unique development potential to deliver significant growth in the shareholder value of the Company, assets investment potential improvement and to provide a contribution to the growth of the Russian Federation's GDP under the updated "Rosneft-2022" Strategy."
Rosneft Information Divisiontel.: + 7 (499) 517-88-97December 19, 2017
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