|Lukoil Net Income For The 1st Half Of 2001|
|President of Russian Federation Vladimir
Putin and OAO
LUKOIL President Vagit Alekperov meet ap 2002
Vagit Alekperov presented Company's plans for international activity development. He talked, in particular about future acquisition plans for international assets, plans for oil products export increase aimed to strengthen positions of the Russian oil industry on international markets for oil and oil products.
As an example, Vagit Alekperov mentioned that in accordance with the agreements made during Vladimir Putin's visit to Greece, LUKOIL has become an exclusive participant on a stake for 23.17% of Hellenic Petroleum (Greece) share capital. It is the first time that Russian company participates in such a big project on the territory of the country that joined the EU and NATO.
Vagit Alekperov informed Russian President
about the actions
that will be taken on the sale of 50 million State-owned LUKOIL shares
(5.9% of share capital with 13.5% owned by the State) on the
stock exchange. In accordance with the estimates made by the Company,
State will receive 700-800 million dollars for the shares to be
|LUKOIL BOARD OF DIRECTORS APPROVED THE AGM
OAO LUKOIL Board of Directors meeting was held today in Moscow. The meeting agenda included topics covering the next AGM issues. The AGM agenda was also approved.
The Board of Directors has set June 27th, 2002 as the AGM date. The AGM will be held in Moscow in the headquarters of the Company. It has been agreed that the list of shareholders having the right of participation will be as for May, 8th. The Board will recommend AGM to approve dividends for 2001 at the rate of 15 rubles per common share with the face value of 0,025 rubles (dividends for 2000 were 8 rubles per common share). The pay off period is set from July to December 2002.
The AGM will also elect Board of Directors (11 members) and Auditing Committee (3 auditors). The list of candidates was approved by OAO LUKOIL Board of Directors on February 4th, 2002.
In accordance with the amendments made to the State Law on Joint-Stock companies, the AGM will have to approve new wording for documents regulating AGM preparatory and conducting procedures, and documents regulating Board of Directors, Audit Committee and Managing Committee actions.
The Board of Directors advises AGM to elect ZAO "KPMG" as an independent auditor of the Company ("KPMG" conducts OAO LUKOIL audits since 1995).
In accordance with the State Law on Joint-Stock companies, AGM will also approve rewarding fee and expenses of the Board of Directors and Auditing Committee.
|LUKoil Eyes Own Resources for Bond
MOSCOW, Nov 1 (Reuters) - Top Russian oil firm LUKOIL is
"Next year we will redeem the bonds out of our own resources," he told a briefing.
LUKOIL made a $230 million convertible bond issue in May 1997 - to be
The company had intended to make a $300-400 million convertible bond
"It would really make no sense to carry out a convertible bond issue
|LUKoil buys 3 foreign oil stakes in 6 weeks
Some experts see a plan to oust foreign money, others say everyone gains
LUKoil, Russia’s leading oil producer, has bought out foreign stakes in three oil-producing joint ventures in northwestern Russia in the past six weeks, adding 3 million tons ($77 million) annually to the company’s current production and 80 million tons ($12 billion) to company reserves.
The LUKoil purchases, which company documents
cost the firm $168.5 million, have been interpreted by some industry
as a campaign to drive foreign investors out of jointly owned or
Russian projects. "But nobody can be pushed out if he doesn’t
to move," said Konstantin Reznikov, oil analyst at Alfa Equities in
Also in August, Soco International Plc, a U.K.-based oil and gas exploration and production company, agreed to sell its half-share in the Urals oil producing venture Permtex to another LUKoil subsidiary. The price was $50 million.
A month earlier, on July 17, LUKoil announced a deal with Bitech Petroleum Corp. of Montreal to buy its production venture in Komi, plus exploration rights Bitech holds in Egypt, Tunisia, Morocco and Colombia. The offer, which Bitech accepted, was worth $80 million. The IFC is also a major shareholder in Bitech.
A year ago, Bitech executives fought off a
raid on their
Russian oilfield operationsby a former Russian partner, who was paid
Subsequently, a senior Bitech executive said, the company would have to
build a partnership with a Russian oil major if it was to have any
to survive. According to Jim Henderson, head of research at Renaissance
Capital in Moscow, LUKoil’s buyout offer represented a 99 percent
over Bitech’s share price.
Unable to develop
The oil company has kept the diamond project
arm’s length until a few days ago, when it filed suit in the
arbitration court to annul the joint venture and push the Canadian
|Lukoil Board Of Directors Discussed The
1st Half 2001
More on 1st Q 2001
The meeting of LUKOIL Board of Directors has taken place today in Moscow where the results of the Company's performance in the 1st half 2001 were summarized.
Over the first six months of 2001 LUKOIL
joint ventures and projects on PSA terms produced 38.7 mln tons of oil,
which represents a 1.6% increase over the 1st half 2000. Implementation
of the up-to-date enhanced recovery technologies allowed the Company to
produce an additional 7.7 mln tons of oil. LUKOIL accounted for 22.4%
the overall oil production in Russia in the first half 2001.
As compared to the 1st half 2000, the volume of hydrocarbons added to the reserves grew by more than four times and amounted to 47.6 tons of conventional fuel. Six new oil fields and five deposits at existing fields were discovered.
The Company's refineries in Russia processed 10.9 mln tons of oil. The total amount of oil supplied to domestic refineries increased by 1.3%. Refining depth at the Company's refineries in Russia achieved 76.3% whereas Russian average was 70.7%. LUKOIL's share in the overall refinery throughput in Russia amounted to 12.9%.
In the 1st half 2001 the Company's refineries outside Russia (Odessa refinery, Petrotel-LUKOIL refinery in Romania and LUKOIL-Neftokhim-Bourgas in Bulgaria) processed 4.5 mln tons of oil.
Overall volume of oil product deliveries as compared to the 1st half 2000 increased by 2% and amounted to 17.4 mln tons, including 12.9 mln tons supplied to the domestic consumers.
Oil exports in the 1st half 2001 amounted to 16.24 mln tons, oil product exports amounted to 4.5 mln tons which represents an increase of 10.4% and 9.9% respectively (as compared to the 1st half 2000).
It was stressed at the meeting of LUKOIL Board of Directors that the Company had to retain its positions on the oil product markets under complicated market conditions - an oversupply of oil products, unprecedented high level of oil product inventories at refineries and oil terminals. Under such conditions, LUKOIL price policy was aimed at gradually decreasing domestic prices. Thus, prices for light oil products in the 1st half 2001 were decreased by 5-18%, for fuel oil - by 40-50% as compared to January 2001. Moreover, in the 1st half 2001 the profitability of export sales decreased due to a considerable increase in export duties for oil and oil products.
The Board of Directors also discussed the
matter of improving
the personnel management system. In this connection, a system for
certification based on the professional standards conforming to the
global requirements for the employee qualification on the labour market
will be implemented by the end of this year. There will also be an
in the process of continuous employee training.
|LukOil plans to purchase another five gas
Great Silk Road World
Vagit Alekperov, LukOil Chef Executive, told GSRW the Russian company is planning to purchase another five gas stations in Azerbaijan to bring the number of its stations to 20. Early May, LukOil announced its purchase of five gas stations from Tapet Oil & Gas Co. Ltd. After the transaction, the company owned a total of 15 stations, including 13 in the capital city, one in the city of Sumgayit and one in the city of Gusary. LukOil intends to secure stable operation of its oil storage depot in the Khatainsk region. The designed capacity of the depot is 120,000 tonnes of oil products which are supplied by Azerneftyanadzhag.
Ten reservoirs are designed to receive and distribute five types of oil products, including AI-95, AI-93 and AI-76 brands of gasoline, diesel fuel and burning kerosene.
|Lukoil Develops Cooperation With Astrakhan
LUKOIL President Vagit Alekperov and Head of Astrakhan region administration Anatoly Guzhvin have signed today in Moscow a protocol of co-operation between the Company and the region for 2001. The document was signed in the development of the agreement of mutual co-operation dated July 4, 1996.
In accordance with the protocol, LUKOIL-Astrakhanmorneft will take part in carrying out the program for the gasification of Enotaevsky district in Astrakhan region. In particular, in 2001, LUKOIL-Astrakhanmorneft will carry out drilling and service facilities construction for a gas producing well on North-Shadzhinskoye gas field. LUKOIL-Astrakhanmorneft also intends to drill an appraisal well for a more thorough study of hydrocarbon reserves on Poldnevsky bank.
Moreover, LUKOIL will consider the possibility of financing the construction of modern facilities for processing sea-drilling waste, will build two new and upgrade two existing filling stations in the region, as well as provide charity aid in restoration of Astrakhan Kremlin and other historical monuments.
On their part, the region administration will allocate land properties within the precincts of the town for the Company to construct 4 filling stations.
"We are confident that the signed Protocol
to industrial potential growth and improvement of the well-being of
in Astrakhan region where our Company has enjoyed years of productive
mutually beneficial co-operation", - stressed LUKOIL President Vagit
|LUKOIL BOARD OF
APPROVED THE ANNUAL REPORT FOR 2000
Tue May 29 08:03:59 2001
The meeting of LUKOIL Board of Directors has taken place today in Moscow where in accordance with Joint Stock Companies Law and the charter of the Company the annual report was preliminarily approved for subsequent submission for approval by the General Stockholders' Meeting on June 28, 2001. In 2000, oil production by LUKOIL subsidiaries, affiliates and joint ventures increased by 2.8% compared to last year and amounted to 77.7 mln tons.
Oil production in new regions grew at accelerated rates: on KomiTEK oil fields - by 9% and amounted to 3.9 mln tons, in overseas projects on Caspian and in Kazakhstan - by 18% reaching 2.1 mln tons.
Every sixth ton of oil was produced using progressive enhanced recovery
In 2000, oil production by LUKOIL subsidiaries, affiliates and joint ventures increased by 2.8% compared to last year and amounted to 77.7 mln tons. Oil production in new regions grew at accelerated rates: on KomiTEK oil 20 fields - by 9% and amounted to 3.9 mln tons, in overseas projects on Caspian and 20 in Kazakhstan - by 18% reaching 2.1 mln tons. Every sixth ton of oil was produced using progressive enhanced recovery technologies.
In 2000, big volume of carried out exploratory activities - 2.7-fold increase (8.3 bn rubles) compared to 1999 - resulted in significant additions to the reserve base: about 70 mln tons of conventional fuel. According 20 to the independent reserve audit, Company's reserves reached 14.2 bn bbl of oil 20 and 3.6 trln cubic feet of gas. A new oil and gas province in Russian part of 20 Caspian was discovered.
Refinery throughput at Company's refineries increased by 10% 20 and amounted to 32 mln tons, including 72% in Russia and 28% - at refineries 20 abroad. LUKOIL's share in the total refining volume in Russia increased to 14.4% compared to 12.2% in 1999. Refining depth exceeded 76%, whereas the sector average is 71%. In 2000, the reconstruction of refineries in Russia and abroad continued, including Ukhta refinery where the refinery throughput increased by 70% (to 3.6 mln tons).
The active development of the service stations network and oil product sales continued. At the end of 2000 the Company's network of service stations exceeded 2500 outlets. Oil product sales in Russia increased by 35%, packaged lubricants sales - 1.6-fold. The volume of sales by a Company's single fuel card increased by 47%.
In 2000, the Company achieved record financial results. Income before taxation amounted to 112.6 bn rubles, which in current prices represents a 2.7-fold increase compared to 1999. Operating profit in 2000 increased up to 119 bn rubles compared to 48.9 bn rubles a year before. LUKOIL Group share in net income of affiliates - earnings from affiliated equity interests - amounted to 3.0 bn rubles in 2000 (increase of 61%). Income taxes increased to 16.2 bn rubles compared to 9.5 bn rubles in 1999.
Consolidated net profit of LUKOIL Group amounted to 102.5 bn rubles, or 96.4 bn rubles excluding income applicable to minority shareholders in Company's subsidiaries. Earnings per 1 common share (before suggested dividends on preferred shares) amounted to 124 rubles - 3-fold increase under comparable conditions.
Group assets as of December 31, 2000 amounted to 338.1 bn rubles (227. 4 bn rubles a year before), shareholders' equity - 156.2 bn rubles (75.7 bn rubles).
In accounting period
a significant improvement in practically all
and liquidity ratios (compared to the data as
December 31, 1999):
In 2001, a whole range of production facilities and capacities will be put into operation, in particular the second stage of reconstruction at Volgograd refinery, Caspian pipeline. The development of oil fields in Timan-Pechora oil & gas province will continue, as well as exploration activities in license areas in Caspian, the construction of the pipeline Ural - Central Russia and others.
Carrying out these and other projects gives the Company 20 additional stability and secures competitive returns and profitability of business not only in high-oil-price environment, but also under less favourable market conditions.
OAO LUKOIL and
In million rubles
Consolidated financial statements for LUKOIL Group have been prepared in accordance with Order N112 of the Russian FederationMinistry of Finance "On the Methodological Recommendations for the Preparation and Presentation of Consolidated Financial Statements".
Consolidated financial statements for 2000 include the results of activities of OAO LUKOIL, 65 subsidiaries (including holding companies) and 18 affiliated companies.
The Audit Opinion of ZAO
the conformity of the consolidated financial statements with the
standard regulatory documents governing accounting and reporting in the
Russian Federation was received on May 18, 2001.
EFE1EF LUKOIL and subsidiaries
CONSOLIDATED BALANCE SHEET
In million rubles
LUKOIL press service phone: (095) 927-1677 fax: (095) 927-1653 e-mail: email@example.com