OREANDA-NEWS. The Board of Directors of Gazprom Neft (the "Company") has reviewed the Company’s 2012 investment programme and budget. Last year's performance was the strongest in the Company's history and represented substantial progress against the 2020 development strategy.

In 2012, the Company increased production by 4.3%, the highest rate of growth amongst Russian oil companies. Refining volume increased by 7%, while sales of petroleum products through high-margin sales channels (retail filling stations, bunkering, and sales of jet fuel and lubricants) were up by almost 15%.

The Company's net profit, calculated according to international financial reporting standards (IFRS), increased by 10% year on year to RUB 176.3 billion. Gazprom Neft ranked first amongst the Russian oil companies in 2012 in terms of growth in both operating profit and net profit, while also achieving the biggest reduction in operating costs per barrel of oil equivalent produced.

The Board has agreed to hold the Company’s Annual General Meeting ("AGM") at 11:00 AM on 7 June 2013. The meeting will be held at Gazprom's central office in Moscow (16 Nametkina Street).

Shareholders on the register as at the close of business on 23 April 2013 will be eligible to participate at the AGM and will be entitled to payments of dividends for 2012 which will be paid within 60 days following shareholder approval.

In light of Gazprom Neft’s strong performance in 2012, the Board has recommended dividend payments amounting to 25% of the Company's 2012 consolidated net profit, calculated according to IFRS, which totals RUB 44.09 billion. If approved by shareholders at the AGM, RUB 9.3 per share will be paid not later than 60 days after AGM, which represents an increase of approximately one third on 2011.

Alexei Miller, Chairman of the Management Board of Gazprom, commented: "In 2012 Gazprom Neft again demonstrated its high levels of efficiency and continued to develop all areas of its business to achieve a record performance in its operating income and net profit during the Company’s history. This has resulted in the Board recommending an increase in the share of net profit paid in dividends from 22% to 25%."