Rosneft annual meeting in the year. Igor Sechin should not be president. Dizziness from success
According to NGO CJSC NSD, Open Joint Stock Company Oil Company Rosneft announced the holding of an annual general meeting of shareholders on June 15, 2016. The date for compiling the list of persons entitled to participate in the annual general meeting of shareholders is May 3, 2016.
Type of general meeting of shareholders of the issuer: annual (regular).
Form of holding the general meeting of shareholders of the issuer: meeting (joint presence of the Company's shareholders to discuss issues on the agenda and make decisions on issues put to vote, with the preliminary sending (delivery) of voting ballots before the General Meeting of Shareholders).
Date, place, time of the general meeting of shareholders of the issuer, mailing address, according to which they can, and in cases provided for federal law, - completed voting ballots must be sent to: Annual (based on the results of 2015) General Meeting of Shareholders will be held on June 15, 2016 at 11-00 o'clock at the address: Russia, 199406, St. Petersburg, V.O., st. Cash. 28/16, multifunctional complex "Gorny".
Postal addresses to which completed voting ballots can be sent: 117997, Moscow, Sofiyskaya embankment, 26/1, OJSC NK Rosneft or 115172, Moscow, PO Box 4 (or 115172, Moscow, PO Box 24), LLC "Reestr-RN".
The start time for registration of persons participating in the general meeting of shareholders of the issuer: from 10:00 a.m. to 5:00 p.m. on June 14, 2016 and from 9:00 a.m. on June 15, 2016. Registration of persons entitled to participate in the annual General Meeting of Shareholders ends after the completion of the discussion of the last item on the agenda of the General Meeting of Shareholders for which there is a quorum, and before the start of the time available for voting to persons who have not voted before that moment.
The deadline for the issuer to accept voting ballots is no later than 6:00 p.m. on June 12, 2016.
Agenda of the general meeting of participants (shareholders) of the issuer:
1) Approval of the annual report of the Company.
2) Approval of the annual accounting (financial) statements of the Company.
3) Approval of the distribution of the Company’s profit based on the results of 2015.
4) On the amount, timing and form of payment of dividends based on the results of 2015.
5) On remuneration and compensation of expenses to members of the Board of Directors of the Company.
6) About remuneration of members Audit Commission Society.
7) Election of members of the Board of Directors of the Company.
8) Election of members of the Audit Commission of the Company.
9) Approval of the Company's auditor.
10) Approval of transactions in which there is an interest.
11) Approval of changes to the Charter of OJSC NK Rosneft.
12) Approval of changes to the Regulations on the General Meeting of Shareholders of OJSC NK Rosneft.
13) Approval of changes to the Regulations on the Board of Directors of OJSC NK Rosneft.
14) Approval of changes to the Regulations on the collegial executive body (Management Board) of OJSC NK Rosneft.
15) Approval of changes to the Regulations on the sole executive body (President) of OJSC NK Rosneft.
16) Approval of changes to the Regulations on the Audit Commission of OJSC NK Rosneft.
The procedure for familiarizing yourself with the information (materials) to be provided in preparation for the general meeting of shareholders of the issuer, and the addresses at which it can be viewed:
Rosneft plans an additional increase in oil production by 20–30 million tons over the next five years due to new technologies, follows from the presentation of the head of Rosneft, Igor Sechin, presented during the company’s annual meeting of shareholders in Sochi.
“The development of advanced technological competencies will allow us to increase oil production: 20–30 million tons of additional organic growth in oil production in the next five years,” the presentation notes.
The company explained that we're talking about about total production over 5 years.
14:05
Sechin, Belousov, Novak, Dudley will not receive remuneration for serving on the board of directors of Rosneft
BP CEO Robert Dudley and former top manager BP Guillermo Quintero refused to receive remuneration for participation in the work of the board of directors of Rosneft. This was stated by the vice-president of the Russian company Pavel Fedorov during the annual meeting of Rosneft shareholders in Sochi.
Rosneft plans to use members for remuneration for work in 2016...
13:58
Rosneft has budgeted for 2017–2018 an oil price of $40 per barrel
Rosneft has budgeted for 2017–2018 an oil price of $40 per barrel, Rosneft CEO Igor Sechin said during the company’s annual shareholders’ meeting in Sochi.
“We generally assume a price of $40 per barrel. In 2018, maybe a little more,” he said, answering a question about the price of oil in the 2017–2018 budget.
According to Sechin, the company's investment volume in 2017-2018 will amount to over 1 trillion rubles annually.
13:50
Rosneft plans to spin off its retail business into a separate structure
Rosneft plans to spin off the company's retail business into a separate structure, Rosneft CEO Igor Sechin said during the company's annual shareholders meeting in Sochi.
Sechin explained that the company will work on the issue of transition to a holding management structure.
“The issue of switching to a holding management structure with the implementation of a pilot project in the retail segment will be explored,” he noted.
Also, according to company materials, the Rosneft oil service business may be separated into a separate structure...
13:47
Sechin: Rosneft supports the OPEC+ deal, but is ready for any developments
Rosneft supports the agreement to reduce oil production between OPEC countries and independent oil producers, but is ready for any developments, the head of the company, Igor Sechin, said during the annual meeting of Rosneft shareholders in Sochi.
“Rosneft supports the dialogue that is being conducted by the Ministry of Energy of the Russian Federation with leading producers and OPEC countries. This allowed the company to take advantage of price stabilization and even some price growth. At the same time, our task is to joint stock company- provide maximum...
13:26
Rosneft will present a new company strategy by the end of the year
Rosneft will present a new company strategy by the end of the year, Rosneft CEO Igor Sechin said during the company's annual shareholders meeting in Sochi.
“We will develop the Rosneft 2022 strategy and present it to the board of directors for consideration in accordance with the instructions of the President of the Russian Federation until the end current year", - he said.
Sechin also noted that the company supports the proposal to switch to paying dividends in the amount of 50% of net profit starting in 2017.
He announced the development new strategy on rise...
13:23
Sechin: Rosneft reserves allow increasing gas production by 10% per year
Rosneft's reserves allow the company to annually increase gas production by 10%, Rosneft head Igor Sechin said during the company's annual shareholders' meeting in Sochi.
“Significant gas reserves allow us to increase production at an average annual growth rate of 10%,” said the head of the company.
As RNS previously reported, Rosneft increased gas production in January - March 2017 by 2.9...
13:17
Rosneft plans investments in 2018 at a level of over 1 trillion rubles
Rosneft plans investments in 2018 at a level of over 1 trillion rubles, said the head of Rosneft, Igor Sechin, during the annual meeting of the company’s shareholders in Sochi.
“The approved investment program for 2017–2018 involves annual investments in the amount of over 1 trillion rubles,” he noted.
Sechin explained that most of the investments will be in new projects.
“Most of them are in the final stages of construction,” the head of Rosneft said.
According to Sechin, the company plans...
13:06
Rosneft estimates the synergistic effect from the purchase of Bashneft over six months at 40 billion rubles
The synergistic effect from Rosneft’s acquisition of Bashneft in the first half of 2017 amounted to more than 40 billion rubles, Rosneft head Igor Sechin said during the company’s annual general meeting of shareholders.
“The synergistic effect in just two quarters of this year amounted to more than 40 billion rubles,” he noted.
Previously, the vice president of the company, Pavel Fedorov, stated that the deal should be closed before the end of II...
12:56
McKinsey analysts predicted a deficit in the oil market of 17 million barrels per day by 2025
Consulting firm McKinsey expects oil demand to exceed supply by 17 million barrels per day by 2025. This follows from the presentation McKinsey presented before the annual general meeting President and CEO of McKinsey Neil Anderson of Rosneft shareholders in Sochi.
“It is worth noting the constantly growing demand for oil. This demand is due, in particular, to the growing demand in the transport sector. We believe that the gap between supply and demand by 2025 will be 17 million barrels per day...
This year, the meeting of Rosneft shareholders is taking place in St. Petersburg at the Gorny complex on Vasilyevsky Island. In front of the complex, the ex-head of Rosneft, and now the owner of NNK, Eduard Khudainatov, and the head of the gas department of Rosneft, Vlada Rusakova, were walking and chatting cheerfully. Shortly before the start of the meeting, the newly appointed and... O. general director Rosneftegaz Gennady Bukaev. In total, about 150-200 people gathered shareholders.
At the entrance to the hall they were greeted by a stand with a “shareholders’ newspaper.” “The Myth of the Supercycle: The Era of Low Prices Won’t Last,” the editorial read.
The meeting opens
At 11.00 Moscow time, Assistant to the President of Russia and Chairman of the Board of Directors of Rosneft Andrei Belousov greeted those gathered. For those who could not come, a video broadcast of the meeting was organized, he said. You can watch the collection even in the very north of the Krasnoyarsk Territory - on Vankor. Officially, Andrei Belousov opened the meeting at 11.32 Moscow time.
According to Belousov, the difficult 2015 was a test for the company to ensure stability and sustainable growth And " Rosneft» withstood it. The company fulfills all obligations, despite low prices for oil, “I want to emphasize this,” the official said. Rosneft managed to maintain oil production and increase gas production by 10%, fulfill obligations to produce Euro-5 fuel, began work at the Zvezda shipbuilding complex, and invested a lot in innovation, Belousov listed. After that, he gave the floor to the head of the international group for providing services to companies oil and gas industry E&Y to Adi Karev, who told shareholders in detail what happened to oil prices in the world, how effective Rosneft is so far and what the company needs to do in difficult situation further.
Dizziness from success
Then the head of the company spoke. “This year marks 10 years since the IPO, since then Rosneft has come a long way: oil production has increased by 2.5 times, gas by four times, refining by more than 4.5 times,” said Igor Sechin. “The gap in market value with Gazprom exceeded $5 billion,” he boasted. “2015 was a real test for the industry; the crisis created an atmosphere of uncertainty, but the company was able to demonstrate qualitative growth financial results“, - the president of Rosneft spoke about the successes. “11.5 billion barrels. - these are oil and condensate reserves, 7.5 trillion cubic meters. m - gas reserves. At the end of the year, another record was achieved in hydrocarbon production - 254 million tons of oil equivalent. e.”, continued the top manager.
“In terms of drilling, the number of wells, the increase in reserves, and most of the indicators, we are the best in the global oil industry.” According to Sechin, Rosneft’s service is also the best among Russian companies. “We can do 29-stage hydraulic fracturing - this is a record for Russia. Every third cubic meter of gas on the stock exchange belongs to Rosneft,” says the company’s president. In his opinion, a strategically important task is the development of shelf projects. A $1 investment in the shelf produces a $7 multiplier effect on the country's GDP, he explained.
And here the company has success. Rosneft is strengthening its position on the Arctic shelf: in 2014, it discovered one of the largest fields in the last three years - Pobeda in the Kara Sea. Rosneft recently received a license for the Khatanga Bay, drilling will begin in the spring next year, the top manager described.
All Rosneft refineries last year moved ahead to producing Euro-5 fuel, he said. The Ministry of Energy believed that the company, on the contrary, was one of the Russian oil industry laggards in modernizing oil refining; the department even moved the deadline by six months mandatory transition for Euro-5 fuel, Sechin said.
“Over the past year, our shares have increased in price by more than 30%. The total total return for investors was 25% on paper, while Western companies showed negative returns. “I would like to record the fact that we continue to generate positive cash flow for 16 quarters, while our colleagues went into the red,” he said.
Based on the valuation of 15% in Vankorneft, which the company recently sold to Indian ONGC for $1.27 billion, the valuation of all Rosneft reserves is twice as high market value company, it follows from his words.
Rosneft is the driver Russian economy: in 2015, the company transferred 2.3 trillion rubles to the budget. We will continue to work for the prosperity of our country, our shareholders and our company,” Sechin concluded.
What do shareholders care about?
In response to a question from one of the shareholders about the sanctions, Sechin said that the company was working to reduce the risks from their impact. “We are doing this successfully so far, but there is probably no need to tell all the details,” he noted.
Poetry of Rosneft
Shareholders not only asked questions to Igor Sechin, but also read poetry. “I wanted to add a little humor and read a poem, maybe the shareholders will be a little relieved by the serious speeches and proposals,” said Vera Lubyakina, owner of Rosneft shares. “I want to live beautifully and luxuriously, // Don’t bother by squandering money. // I’ll leave for Monte Carlo right now, // I just want to receive dividends,” she read her work.
To another question - about remuneration for board members - the top manager grinned: “This question worries many. The size corresponds to the remuneration of the world's largest companies, otherwise we will lose staff." “Try to interest a good trader with a small salary when large transactions are taking place before his eyes. Having such personnel allows us to provide technological breakthroughs,” he explained.
“How will the increase in dividends affect the investment program, will the operational risks for the company increase?” - asked another owner of Rosneft shares. “We discussed this and agreed on such payments on our part. This will require an additional 36 billion rubles from us, this is not a critical level for the company,” Sechin said. At this time, the shareholders in the hall sighed and discussed their dividend payments. “Oh, I don’t have enough, 15,000 thousand,” mourned one happy owner of Rosneft shares.
“Last year I spent 650 hours on a plane due to negotiations with foreign partners - this is just for your information. If someone wants to spend 650 hours a year on an airplane, please,” the top manager complained in the meantime.
“Will Rosneft maintain dividends of 35% of net profit or is this a one-time action?” - asked the shareholders. “For this year, taking into account government requirements, a level of 35% has been determined. I wouldn’t like to get ahead of myself and say that we will continue at the same level; it will depend on the wishes of the main shareholder. If such demands are received, we will consider them constructively. But we understand the importance of such work, we will look for a balance of interests and strive for stability,” Sechin replied.
Shareholders not only asked questions, but also offered their vision for the development of the company. Thus, one of them suggested that Rosneft consider paying interim dividends. “There is a reason: we closed the deal to sell a stake in Vankorneft,” he pointed out.
One of the shareholders complained about the closed nature of Rosneft. He requested information about major transactions that the company carried out, but did not receive it. “As far as I understand, this is due to the fact that I have a minimum number of shares, so the information that can be provided to me is minimal,” explained the owner of Rosneft shares. This situation needs to change radically.
First, shareholders need to be provided with maximum information, and then count on investments, he explained. “We ask the company’s management to open up data on its activities as much as possible, to take a step towards the shareholders, this will have a very good effect on the image of Rosneft,” the shareholder concluded.
Solutions
Rosneft shareholders approved the payment of dividends of 11.75 rubles. per share, or 124.5 billion rubles, is a compromise of 35% of the company’s net profit. In the spring, the Ministry of Economic Development insisted on dividends from Rosneft at 50% of net profit, and the Ministry of Energy - at 25%.
Andrey Belousov remains chairman of the board of directors, as follows from the draft directive that Vedomosti has. The shareholders approved E&Y as the auditor of Rosneft.
The shareholders also renamed the position of the President of Rosneft to “Chief executive director"and approved a number of changes to the charter.
The annual meeting also approved a number of major transactions. Several of them are related-party transactions: the purchase of oil and gas by Rosneft from subsidiaries Rn-Yuganskneftegaz, Vankorneft and Oreburgneft in 2016-2017. on total amount at 1.3 trillion rubles.
Shareholders approved a number of transactions with banks. WITH VTB, a subsidiary of RRDB and Gazprombank, the meeting approved transactions to place deposits in rubles, dollars, yuan or other currencies for a maximum of 4.2 trillion rubles. (with each bank) and for the same maximum amounts - transactions to attract loans. At the proposal of the board of directors, transactions for the purchase and sale of foreign currency with three banks, transactions for repo/reverse repo transactions with VTB Bank, and transactions for the purchase and sale of the company’s bonds during the initial placement for a maximum of 1 trillion rubles were also approved. (VTB will act as a broker). In addition, shareholders approved transactions with VTB for the purchase and sale of bonds, bills for a total maximum amount of 4.2 trillion rubles, transactions with foreign exchange and financial instruments for a maximum of 312 billion rubles, transactions of currency and interest rates for 500 billion rubles. etc.
