OREANDA-NEWS. July 04, 2012. 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, reported the press-centre of Surgutneftegas.

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.”