6 June, 1997 - LUKOIL shareholders had their annual meeting in Moscow yesterday.
Last year saw the company's best performance in three years, LUKOIL president Vagit Alekperov told the shareholders. The net profit increased by 60% while the market capitalization grew from $3.2 billion to $9 billion. The reserves, production, refining and export expanded and new markets were tapped inside and outside Russia. The structural overhaul leading to the creation of a world class vertically-integrated oil company has proved to be the right strategy.
The meeting decided to pay dividends of 300 rubles per ordinary 25 ruble share and 1,000 rubles per preferred 25 ruble share. No dividends will be paid on unsold shares or those owned by the company. The profit that could be paid as dividends on these shares will be used to finance the replacement of obsolete equipment, the production expansion, nature conservation and research and development in oil production and refining and product supply.
The shareholders approved the maximum number of 10 million authorized preferred shares worth 250 million rubles which can be used to finance the Company's involvement in new or reorganized oil companies. It is with this number of declared shares in mind that the Company Board will make a decision on the issuance of shares and changing the Company's charter capital.
The Company Board elected at the meeting includes Vagit Yu. Alekperov, elected unanimously; Vadim Ye. Belov, deputy chairman of the State Anti-Monopoly Policy Committee; Mikhail P. Berezhnoi, director general of the LUKOIL-Garant Non-State Pension Fund; Valery I. Graifer, director general of the Russian Innovative Fuel and Energy Company; Vitaly A. Zelyonkin, deputy chairman of the State Property Committee; Anatoly G. Kozyrev, deputy fuel and energy minister; Sergei P. Kukura, LUKOIL first vice-president; Sergei A. Lobazov, president of the Nikoil oil investment company; Ravil U. Maganov, LUKOIL first vice-president; Ralif R. Safin, LUKOIL first vice-president; and Veniamin P. Sukharev, director general of LUKOIL-Permnefteorgsintez.
FINANCIAL AND OPERATING HIGHLIGHTS
||1996 As % 1995|
|Net income per common share
|Share quotations (December)
|Total assets, year end
|Net income as % of net revenues
|Net income as % of total assets
|Crude oil production, Inc. joint ventures
|Refining runs at LUKOIL refineries
|Crude oil free export sales
|Petroleum products export sales
|Number of employees
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