27 Dec 2018 07:00
ROSNEFT OIL COMPANY BOARD OF DIRECTORSFINAL IN-PERSON MEETING RESULTS
The Board of Directors of Rosneft Oil Company reviewed the results of the implementation of the ROSNEFT-2022 Strategy and noted success in achieving its goals for 2018, additionally confirming the relevance of the approved future strategic tasks. In particular, this year, progress was made on the following ROSNEFT-2022 key priorities: business profitability growth; provision of high-quality project management; development of the corporate culture and technological capabilities of the business.
The Board of Directors reviewed the 2018 preliminary results and a plan for 2019-2020, which defines the Company's development direction, including investments growth in hydrocarbon production, timely launch of new projects, enhancement of competitive positions in refining, and also rapid development of technological capabilities. The Company's resource potential implementation and the planned launch of major new projects in 2019-2020 will provide for a temporary increase in capital investments for this time to the level of 1.2-1.3 trillion roubles.
Based on the preliminary operational results, it is expected that in 2018 the hydrocarbon production will grow by 2 percent year-on-year and exceed 285 million tonnes of oil equivalent, and the petroleum products retail sales on the domestic market by 12 percent. The Company's EBITDA for 9 months of 2018 was at record 1.59 trillion roubles, which is 58 percent higher than last year. Rosneft's debt burden and trade liabilities for 9 month of 2018 decreased by $12 billion. Also, during the year, on the results of 2017 and H1 of 2018, record dividends were paid totalling 225 billion roubles.
Commenting on the meeting results, Rosneft Chief Executive Officer Igor Sechin said: "The Strategy approved a year ago proved its efficiency, which was confirmed today by the Company's Board of Directors. The growth of the market capitalisation of Rosneft Oil Company that has exceeded 40 percent since the Strategy approval despite the oil market volatility signifies the high level of appreciation of the Strategy by the investment community. We will continue our work on set strategic tasks of increasing of the Company's financial and operating efficiency."
In his turn, BP Chief Executive Officer Robert Dudley noted: "A year ago, the Board of Directors approved the ROSNEFT-2022 Strategy, one of the most daring and sophisticated strategies in the industry; and I am quite pleased to note that we are accomplishing the tasks ahead of schedule. The results prove our operation model to be sustainable and aimed at organic growth."
Also, the Board of Directors approved measures to strengthen the Company's position in the environmental, social and governance areas (ESG), featuring Rosneft's public attitude towards compliance with the 17 Sustainable Development Goals of the UN.
Chairman of the Board of Directors of Rosneft Oil Company Gerhard Schroeder said: "I am happy to see that over the past year the Company has not only improved its global market position but also recognised sustainable development as one of its strategic priorities. The devotion to the UN's goals and the efforts to achieve them will be an important factor of the Company's promotion as a responsible world energy leader."
Rosneft
Information Division
Phone: +7 (499) 517 88 97
December 24, 2018
These materials contain statements about future events and expectations that are forward-looking in nature. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements expressed or implied by such forward-looking statements to differ. We assume no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.