Bashneft shows profit growth

UFA, 17 December 2018. /Bashinform News Agency, Gulfiya Akulova/ translated by Tatiana Aksyutina/. On Friday, an extraordinary general meeting of shareholders of PSJOC Bashneft was held in Ufa. At the extraordinary general meeting of shareholders, the oil company re-elected the board of directors and summed up the preliminary results of the year.

The meeting was opened by the Chairman of the Board Andrey Shishkin. In his speech to the shareholders, he dwelt on the company's main financial results for nine months and achievements in the manufacturing sector for 11 months of 2018.

According to the head of the company, 81 productive deposits were discovered due to to the results of exploration works in the current year. Preliminary total reserves of oil in open reservoirs amounted to 19 million tons, which allows achieving a replacement ratio of more than 100%. Also, the Bashneft Chairman of the Board focused on the issues of production modernization. The construction of a primary processing unit AVT-6 and a delayed coking unit at Bashneft-UNPZ, reconstruction of the complex for the production of aromatic hydrocarbons at Bashneft-Ufaneftekhim are planned, and the hydrocracking unit is being restored. In May 2018, at Ufaorgsintez, a new plant for the iso-propyl benzene production was put into operation - raw material for the manufacture of paints, solvents, various polymers. A construction of new olefin production units is next in line.

“The company shows a positive trend in all key financial indicators. Despite the planned decline in production under the OPEC + transaction and the global decline in the profitability of the refining segment, the consolidated operating profit before depreciation, taxes and interest for the nine months of 2018 increased by 22.6% compared to the same period of the last year and amounted to 135 billion rubles", Andrey Shishkin reports.

The company's net profit for the nine months reached 75 billion rubles, which is 73.5% more than for the same period of the last year. Good financial results made it possible to increase tax payments to the budget of Bashkiria by 1.5 times, to reduce the company's net debt by 2.5 times. In the third quarter, Bashneft paid out high dividends to shareholders following the year of 2017 in the amount of 28.2 billion rubles. More than 7 billion rubles of this amount were received by the republic, which owns the fourth part of the company's shares.

An important part of the report was devoted to Bashneft’s social responsibility, including in the area of implementing charitable projects in the republic.

“Rosneft Company is implementing a large-scale charitable program with the republic with an annual funding of 4 billion rubles. At the expense of these funds, construction, reconstruction, and repair of social and infrastructure facilities in the region are being carried out”, said Andrey Shishkin.

It was decided to change the structure of the company's Board of Directors at the extraordinary general meeting of shareholders. As reported by the Bashinform News Agency, the acting board of directors from Bashkortostan included interim Minister of Land and Property Relations RB Oleg Polstovalov and Rustem Khamitov.