OJSC Surgutneftegas: ANNUAL GENERAL SHAREHOLDERS’ MEETING FOR 2011 HELD IN SURGUT ON 29 JUNE

OJSC Surgutneftegas  / AGM Statement

29.06.2012 10:48

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ANNUAL GENERAL SHAREHOLDERS' MEETING FOR 2011 HELD IN SURGUT ON 29 JUNE

In line with the agenda, the shareholders approved the annual report and annual
accounting statements of OJSC 'Surgutneftegas', including the profit and loss
account for 2011.
The meeting resolved to declare payment of dividends for 2011 as follows: RUB 2.15
per preferred share and RUB 0.6 per ordinary share.
The meeting elected the following members of the Board of Directors: S.A.Ananyev,
V.L.Bogdanov, A.N.Bulanov, I.N.Gorbunov, V.P.Erokhin, N.I.Matveev, A.F.Rezyapov,
T.P.Klinovskaya, and V.A.Shashkov.
The meeting elected the Auditing Committee of three people, approved amendments to
the Regulations on the Auditing Committee, and approved LLC 'Rosexpertiza' as
auditor for 2012. In addition, the meeting resolved
to approve transactions that may be conducted in the future by OJSC
'Surgutneftegas' and its affiliates in the course of its general business
activity.
In his report on the 2011 results, Vladimir L. Bogdanov, Director General of OJSC
'Surgutneftegas', said that despite the unstable environment, the Company pursued
its plans, implemented investment projects, and improved
production performance.
'Because of the long investment cycle of the oil industry, the Company's business
requires sustainable levels of investments, irrespective of fluctuations in
macroeconomic indices and energy prices. We believe that this approach is the most
reasonable and adequate with regard to implementation of investment projects,
consistent development of the Company, and increase in the shareholders' benefit,'
Vladimir Bogdanov emphasized. 'In 2011, total capital investments rose 23.5% year
on year to RUB 171.8 bn. Over the last five years, we more than doubled our
investments.'
In the reporting year, the Company increased its crude output by 2.1%, which is
higher than the average figure for the industry. At year end, Surgutneftegas
produced 60.8 mn tons of crude oil.
The Company added 136 mn tons to oil reserves. The cumulative growth of oil
reserves over the last five years has exceeded crude output by 80%.
Surgutneftegas has the highest ratio of associated petroleum gas utilization in
the sector, which reached an all-time high (97.8%) in 2011.
In 2011, the Company processed 7.4 bcm of gas and produced 7.1 bcm of dry stripped
gas and approximately 760 thousand tons of liquid hydrocarbons. Production of
liquid hydrocarbons grew by 5.3% compared to the previous year.
Refining throughput in the reporting year exceeded 21 mn tons. We are completing
the construction of the deeper refining complex based on residue hydrocracking
processes at the Company's refinery. In late 2011, the Company commissioned and
tested several units in the hydrocracking complex.
Surgutneftegas implements the energy saving program and deploys energy efficient
technology. In the reporting year, power savings reached 573 MW; energy
consumption savings, 343 mn kWh. Growth of the Company's own power-generating
capacities is the key element of sound resources management and higher energy
efficiency. In 2011, 19 gas turbine power plants and 7 gas piston power plants of
the Company increased in-house power generation by 16% to 4.2 bn kWh, which covers
more than one third of the Company's requirements.
In his report, Vladimir Bogdanov put particular emphasis on the Company's
operations in Eastern Siberia. He said that the Company's fields in this region
made a major contribution to the production growth. The Company created a modern
and reliable base in Yakutia for development of existing and new fields and
constructed almost all production infrastructure. The Company also began
construction of its own airport in the reporting year.
In 2012, the share of the region in the total oil production is expected to exceed
10%.
Speaking about the Company's financial performance during the year, Vladimir
Bogdanov noted that improved oil and petroleum products market environment,
coupled with the Company's pursuit of operational excellence,
led to unprecedented financial results in 2011 since Surgutneftegas has started
its business as a joint-stock company. The Company's net profit for the reporting
period amounted to RUB 233 bn.
'In 2012, Surgutneftegas will celebrate its 35th anniversary,' Vladimir Bogdanov
said. 'Over those years, we have trodden a long and arduous path to excellence
showing vigor, commitment, and ability to work effectively in
the toughest environments. And today, we have earned recognition as a trustworthy,
highly efficient energy company.
Surgutneftegas is a high-sustainability company able to withstand the recessionary
trends. We boast a strong financial position and reserves, a balanced project
portfolio, operational efficiency and highly qualified
personnel. I believe that we will meet the forthcoming challenges despite all the
difficulties, and maintain sustainable business growth along with maximizing
shareholder wealth.'



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Language:           English
Company:            OJSC Surgutneftegas
                    Grigoriya Kukuyevitskogo, 1, bld.1
                    628415 Surgut
                    Russia
Phone:              
Fax:                
E-mail:             
Internet:           www.surgutneftegas.ru
ISIN:               US868861204
Category Code:      AGM
LSE Ticker:         SGGD
Sequence Number:    1117
Time of Receipt:    Jun 29, 2012 10:48:18
 
End of Announcement                       EquityStory.RS, LLC News-Service
 
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