22 Dec 2011 15:19
Rosneft President Eduard Khudainatov comments on 2011 results
Commenting on the results in 2011 Rosneft President, E. Khudainatov, said that all of Rosneft's 2011 business performance indicators showed stability and robustness. In particular:
·; Production: "In an environment where the volumes of oil produced in Russia and globally are generally reduced, the production of hydrocarbons by Rosneft increased by 2.5% in 2011 amounting to over 122 mln tons of oil and gas condensate which not only confirms the leadership of the Company but also exceeds the indicators of the previous year. Among the total volume of oil production in Russia Rosneft's share increased from 23.7% in 2010 to 24% in 2011".
·; Resource base: "We have carried out intensive work for the replacement of our resource base. The total increase in the reserves of oil and gas condensate at Rosneft following the results of the year will be over 190 mln tons. Over the past year the Company's license portfolio is expected to grow by 21 licenses. We opened 4 new fields and 20 deposits".
·; Refining: "2011 was groundbreaking for Rosneft's oil refining operations. The Company implemented a series of activities for the expansion of refining capacity. This included its own refining facilities modernization, the acquisition of a 50% share in Ruhr Oel which holds shares in 4 refineries in Germany, the commencement of the Eastern Petrochemical Plant construction. In 2011 58 mln tons of oil (+15% by 2010) will be processed at the Company's refineries the annual plan being 55.6 mln tons. Rosneft's share of total refining volume in Russia is 20.3%. It is important that Rosneft refineries that are being modernized not only increase capacity but are also increasing the production of high-quality fuel. Production of motor fuels compliant with Euro-3, 4 standards increased by 3.1 times in 2011 compared to 2010 for gasoline and 1.7 times for diesel fuel".
·; Retail business: "In 2011 new drive was given to the development of the commercial and retail business of the Company. Following the results of the retail business optimization the Company's shareholders received about 400 mln dollars of additional profits. Rosneft has irrevocably fulfilled its obligations to supply fuel to consumers even in a deteriorating market for petroleum products. I would like to especially mark that in this connection most of the export volumes of oil products were re-directed to the domestic market. The Company settled the mechanisms of the operative regulation of the situation in the market for the procurement of oil products and of moderate pricing. 6 mln tons of oil products were sold in the retail market during the year which exceeds the indicator for the similar period of 2010 by 21%. Within the framework of the state program fulfillment, 1.1 mln tons of oil products were supplied at special prices to agricultural producers which exceeded the supply volumes in 2010 by 10%".
·; International projects: "In 2011 Rosneft reinforced its status as a reliable partner among the largest public oil and gas companies in the world. The agreement on strategic cooperation with ExxonMobil, the commencement of works in the framework of Arctic projects, the energy partnership with China, Rosneft entry into European sales market and the implementation of international oil and gas projects in Venezuela - these are all important stages evidencing the integration of the Company into the ranks of leaders of the global energy industry. It is important to mark that thanks to the agreement between Rosneft and ExxonMobil Russia moved up 6 places to 12th in the 2012 A.T. Kearney FDI Confidence Index".
·; Investments: "The total amount of Rosneft investment programme in 2011 will reach 356 bln rubles. Of that, investments into oil refining (without taking into account the acquisition of the share of German refineries assets) mainly directed at the refineries modernization, will amount in 2011 to about 82 bln rubles with an increase of 1.7 times compared to 2010".
·; Innovation: "A priority direction for Rosneft in 2011 was the expansion of innovative projects including these associated with the Arctic shelf development and the production of heavy and tight oil. The Arctic Research Center has been established which will develop technologically complex design solutions both for the joint activities of ExxonMobil and Rosneft in the Arctic shelf and for other projects of the Company. The Company has created a department of scientific and technical development and innovations as well as a department for environmental safety and technology".
·; CSR: "In the framework of CSR implementation in all key regions where the business is conducted the Company has implemented comprehensive social and economic programmes. In 2011 financing was arranged for the construction, repair and restoration of more than 150 social facilities in the regions. Some projects were aimed at the social and household improvement of the lives of our employees. In particular, an up-to-date complex of buildings of the residential work camp was constructed on the site of the support base of the Vankor deposit. The Company employs approximately 170 thousand people".
·; Financial results: "According to expected data, the financial results of the Company in 2011 will exceed the results of 2010: operational income before depreciation according to the Russian Accounting Standards will grow to 636 bln rubles, an increase of 13.5% compared to 2010. Forecast net income of 393.6 bln rubles represents an increase of 14.7% compared to 2010".
The indicators listed above confirm the performance of the scheduled management and production strategy of the Company. Emphasis on the achievement of maximum economic efficiency to fulfill the interests of shareholders is delivered. All this ensures a well deserved place for Rosneft among leading oil and gas companies.
Rosneft Information Division
Tel.: +7 (495) 411 54 20
Fax: +7 (495) 411 54 21
December 22, 2011
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.