OREANDA-NEWS. June 10, 2011. OJSC ANK Bashneft and its subsidiaries and affiliates including OJSC Bashkirenergo (hereinafter ‘Bashneft Group’ or ‘the Group’), one of the leading vertically integrated Russian oil companies, publishes unaudited consolidated financial results prepared to International Financial Reporting Standards (IFRS) for the 3 months ended on 31 March 2011, reported the press-centre of Sistema. 

Comparative data for the 3 months ended 31 March 2010 are also unaudited consolidated results prepared to International Financial Reporting Standards.

MAIN FINANCIAL RESULTS IN THE FIRST QUARTER OF 2011
Revenue increased by 42.0% in the first quarter of 2011 to USD 4,135 million compared with  US\\$ 2,912 million in the first quarter of 2010;

EBITDA rose by 39.4% in the first quarter of 2011 to USD 856 million compared with USD 614 million in the same period of 2010;

Net income attributable to shareholders of the parent company rose by 52.9% in the first quarter of 2011 to USD 370 million compared with USD 242 million in the first quarter of 2010;

MAIN OPERATING RESULTS IN THE FIRST QUARTER OF 2011
ANK Bashneft increased output of crude oil in the first three months of 2011 for the eighth consecutive quarter. Crude output in the first quarter this year was 3.68 million tonnes compared with 3.374 million tonnes in the first quarter of 2010;

Average daily output of crude oil in the first quarter of 2011 rose by 9.1% to 291,000 barrels compared with 267,000 in the same period of 2010;

Refining volumes in the first quarter this year were 3.8% more than in the same quarter last year (4.993 million tonnes compared with 4.808 million tonnes).

BASHNEFT GROUP INCREASED ITS STAKE IN SHARE CAPITAL OF SISTEMA-INVEST 
 
Based on a decision by the Board of Directors of Bashneft, the stake of Bashneft and its subsidiaries (Ufa Refinery, Novoil and Ufaneftekhim) in share capital of Sistema-Invest was increased to 49.5%.
 
Shareholders of OJSC Sistema-Invest voted on 25 January 2011 for reorganization of Sistema-Invest by merger to the company of four subsidiaries of ANK Bashneft and of the Bashkortostan refineries, which are part of Bashneft Group. These four subsidiaries were: CJSC Bashkortostan Unified Energy Systems, CJSC UNKh-EnergoInvest, CJSC UNPZ-EnergoInvest, and CJSC Novoil-EnergoInvest.
 
In May 2011 Sistema-Invest exchanged its shares, including treasury stock (Sistema-Invest purchased 10% of its own shares for 3,762 million rubles in December 2010) and shares from a new issue, for stakes owned by ANK Bashneft and the Group’s Bashkortostan refineries in OJSC Bashkirenergo. The new issue by Sistema-Invest totaled 28,488 shares. As a result, share capital of Sistema-Invest increased to a total of 128,488 shares.
 
Sistema-Invest obtained a controlling share stake in Bashkirenergo (50.17% of common shares or 47.87% of share capital) by merger with companies that owned the parts of this stake. These companies (CJSC Bashkortostan Unified Energy Systems, CJSC UNKh-EnergoInvest, CJSC UNPZ-EnergoInvest, and CJSC Novoil-EnergoInvest) thereby ceased to exist as legal entities.
 
Stakes of ANK Bashneft and of the Group’s Bashkortostan refineries in Bashkirenergo before the transaction were: ANK Bashneft, 11.6% (12.2% of common shares); Ufa Refinery, 11.6% (12.2% of common shares); Novoil, 11.6% (12.2% of common shares); and Ufaneftekhim, 13.0% (13.6% of common shares).
 
After the exchange of stakes in Bashkirenergo for shares of Sistema-Invest, ownership of share capital of Sistema-Invest became as follows: ANK Bashneft, 26.7% of share capital; Ufa Refinery, 7.3% of share capital; Novoil, 7.3% of share capital; Ufaneftekhim, 8.2% of share capital. The overall stake of ANK Bashneft and its subsidiaries in share capital of Sistema-Invest is now 49.5%. The share holding of OJSC AFK Sistema in Sistema-Invest is 50.5%.
 
 
THE BOARD OF DIRECTORS HAS DECIDED TO RECOMMEND THE ANNUAL GENERAL MEETING OF SHAREHOLDERS TO APPROVE DIVIDEND PAYMENTS OF 235.77 RUBLES PER COMMON AND PREFERRED SHARE FOR 2010
 
The Board of Directors of ANK Bashneft held a meeting on 18 May 2011 to consider issues associated with the forthcoming Annual General Meeting of Shareholders.
 
Directors decided that the Annual General Meeting of Shareholders of ANK Bashneft will be held on 29 June 2011 in the city of Ufa in the form of joint presence.
 
The Board of Directors also agreed to recommend the Annual General Meeting of Shareholders to approve dividends for 2010 at 235.77 rubles per common and per preferred share. Including interim dividends of 104.5 rubles, which were already paid for 9 months of 2010, total cash dividend payment for 2010 will be 236 rubles per common and preferred share.
 
The Board of Directors will ask the Annual Meeting of Sharehoders to set a date for payment of dividends on common and preferred shares which is no later than 28 August 2011.