Despite economic sanctions and shocks in FX rate fluctuations and oil prices the Company demonstrated decent operations performance and managed to successfully implement its investment projects».
Andrey Belousov,
The Chairman of Rosneft Board
of Directors
Dear Shareholders!
The past year of 2015 tested stability and sustainability of oil companies, including Rosneft, and I assure you that we have successfully met the challenge.
Despite economic sanctions and shocks in FX rate fluctuations and oil prices the Company demonstrated decent operations performance and managed to successfully implement its investment projects. The hydrocarbon replacement ratio, according to Russian classification, grew to 168 % from the volume of production on the territory of the Russian Federation, which made it possible for the Company to maintain long-term production even in such challenging conditions. In this context the Company’s operations become the primary factor for providing economic strength of the Russian Federation and maintaining steady demand for domestic products. Rosneft is a major consumer of goods, works and services among Russian private and publicly owned companies. In 2015 procurement of goods, works and services from third counterparties totaled RUB 1.4 tn.
Large-scale investments to upgrades of our refineries supported compliance with the requirements of the Technical Regulations of the Customs Union with all Rosneft’s refineries converted to the production of Euro-5 gasoline and diesel fuels for the Russian market.
Creation of new major ship-building capacities in the Russian Far East is the Company’s important investment project. In 2015 Rosneft started construction of the Zvezda ship building center, allowing the first workshops to be put into operation in 2016, to pioneer the first large-block ship building in a Russian shipbuilding yard and to produce necessary materials and accessories, including those for the Company’s Arctic upstream projects. This large-scale construction program in the region, fosters infrastructure development of the Far East of Russia, creates new high efficiency jobs, and facilitates the implementation of regional social and economic initiatives.
Development of innovation technologies is another significant investment for Rosneft. In the area of refineries, we started application of our own locally manufactured catalyzers for reforming and hydrogen units. We made a move to using only domestic catalyzers at our catalyst cracker units.
As for our environmental innovations, the scientists of the biology department of the Moscow State University developed a unique product for the Company — capable of decomposing oil and petroleum products at low temperatures (including subzero temperatures). The product allows for the disposal of offshore and onshore oil pollutions and decontamination of vessels and platforms surfaces.
As a publicly owned company Rosneft adheres to the highest corporate management standards and follows the principles and recommendations of the Code of Corporate Governance of the Bank of Russia to provide the long-term and sustainable development of the Company and protect the interests of its shareholders and investors.
The weighted and responsible investment and financial policy of Rosneft management ensures stringent control over costs and improves liquidity and dividend payments. Our sustainable performance in 2015 is evidence of the efficiency of the applied strategy and the significance of our priorities. All this makes it possible to rely on Rosneft sustainable development in the future to benefit its shareholders.
Andrey Belousov,
The Chairman of the Rosneft Board of Directors