OREANDA-NEWS. On 03 April 2008 was announced, that an annual general shareholder meeting of the Alliance Oil Company OJSC was held in Moscow. The shareholders approved the annual report, company accounts and Provisions of the President of the Company.

The following members were elected to the Board:

• Isa Bazhayev;
• Evgeniy Vorobeichik;
• Arsen Idrissov;
• Raymond Liefooghe;
• Alexander Sletov.

The annual report shows the following key production and financial results for the 2007:

Oil production amounted to 489.1 thousand tonnes, which is 92.9 kt more against 2006. Of that, Tatnefteotdacha produced 453.9 kt (384,1 kt in 2006), while 35.2 kt were produced by Potential Oil LLC, which is a party to a hydrocarbons prospecting and production sharing agreement covering Begaidar block in Kazakhstan’s Atyrau region. CAPEX allocated for the block accounted for USD 15.4 mln.

Crude refining volumes at the Khabarovsk Refinery were raised in the reporting period by 3.8% to reach of 3,237.6 kt, a maximum since 2000 (against 3,118.5 kt in 2006). Conversion rate has increased to 62.5%, a maximum over 2000-2007. Commercial products output totalled 3,083.6 kt, of which light products amounted to 1,840.7 kt (1,783.0 kt in 2006).

In the total amount of gasolines produced, the share of high-octane grades accounted for 75.2%, with the whole production up to EN 228:2004 specification (Euro-4). The Refinery has started manufacturing GreenEco series gasoline with high detergent performance that is in high customers’ demand.

In November 2007, the Refinery signed a number of contracts to implement a hydrogenation processes complex. A key role in this project is to be performed by Tecnicas Reunidas, a leading world contractor for similar scale projects in the petroleum, petrochemical and power-engineering sectors. The new Complex shall incorporate gas oil and kerosene hydrotreating unit of 1,180 kt p.a., a vacuum gasoil hydrocracker of 500 kt p.a., as well as units indispensable for the main refining process such as hydrogen manufacturing unit and a sulfur recovery unit. Resulting the reconstruction, the entire range of fuels should conform to the European standards, with output of fuel oil dropping 3 times and conversion rate exceeding 85%.

The 2007 product sales were:

• In Russia, a total of 3,173.4 kt (3,026.4 kt in 2006), of which 1,592.8 kt were sold wholesale and 415,3 kt by retail domestically in the Khabarovsk, Primorsk, Amur, Sakhalin, Magadan, and Jewish regions, while 1,165.3 kt were exported;

• In Ukraine, a total for 8 months of 2007 was 269.2 kt, including wholesale domestic sales of 118.7 kt and retail sales of 150.5 kt.

According to IFRS-based consolidated financial statements, the 2007 AOC’s earnings amounted to USD 1,618,101 thousand (against USD 1,330,473 thousand in 2006), EBIT - to USD 129,833 thousand (USD 139,063 thousand in 2006), and net income - USD 67,744 thousand (USD 101,626 thousand in 2006). Net income value reduction is explained mainly by the fact that in 2006 the AOC received a non-recurring income from sale of long-term financial investments, such as the sale of its share in the Nakhodka Sea Port OJSC, as well as the sale of a 100% stake in the Munai Murza CJSC (Kirgizstan). EBITDA  index went up by 38.6% and accounted for USD 225,567 thousand (USD 162,735 thousand in 2006).