Letter of Mr. Alexey Miller
Dear Shareholders and Investors,
Characterising the results of activities of JSC Gazprom Neft in 2010, the Board of Directors notes with satisfaction stable growth in the company's key financial and performance indicators. Gazprom Neft has repeatedly confirmed its status as an effective company. This is a guarantee of realising its future plans and projects.
Current activities focused on improving efficiency in the producing fields. Integrating new acquired assets has also allowed the company to increase performance indicators significantly.
We note 2010 as a year of quality achievements for Gazprom Neft, not only in operational activities but also in its corporative and financial management. The Board of Directors approved the company's dividend policy, the debt portfolio of Gazprom Neft was optimised, and activity for further cost reduction is continuing.
Last year, Gazprom Neft expanded its geography of operations significantly and continued to strengthen its vertical integration. This allowed the company to maintain its leading industry position, in such indicators as operating efficiency and profitability.
Moreover, Gazprom Neft continues to employ a systematic approach in forming its strategic development concept. To improve managerial control efficiency at all levels, the company is adopting an integrated system for long-term strategy development and medium-term business plans.
In the near-term, the company has defined the following strategic objectives for key business directions:
- successfully implementing major projects and building up the resource base
- effective activity on existing assets
- improving the quality and extent of oil-refining
- developing sales in premium segments.
To conclude, I would like to remind you that every company measure to optimise production activities, financial policy and corporative management focuses on creating additional revenue for Gazprom Neft.
Alexey Miller
Chairman of the Management Board, JSC Gazprom
Chairman of the Board of Directors, JSC Gazprom Neft
