OREANDA-NEWS. At its meeting, the Board of Directors of OJSC “Surgutneftegas” addressed the issues related to the Annual General Shareholders’ Meeting, reviewed and gave preliminary approval for the annual report, annual accounting statements and distribution of the Company’s profit (loss) for 2006, including recommended dividend amounts and payment.

The Board of Directors reviewed the financial statements for 2006 and noted that sales revenue grew by 17% to RUR 500.5 billion against the previous year boosted by high world prices for crude oil and petroleum products and increased sales. However, the company’s financial performance was affected by a number of negative factors such as a 9% inflation rate, stronger national currency, and increased tax payments.

In 2006, export duty on crude oil and petroleum products soared by 55% and 61%, respectively, whereas the Mineral Extraction Tax (MET) went up by 24%. Total taxes and duties grew by RUR 94 billion.

As a result, undistributed net profit in 2006 decreased by 33% against the previous year to RUR 77.1 billion.