23/06/2017

Press release: Annual General Meeting of the PJSC TATNEFT’s Shareholders Was Held

The annual general meeting of the PJSC TATNEFT's shareholders was held in Almetyevsk (Republic of Tatarstan) on June 23.

Nail U. Maganov, General Director of PJSC TATNEFT, presented to the audience the report on the results of PJSC TATNEFT's operations in 2016. He outlined in his speech the operations results of 2016 and perspective plans.

The year 2016 was a qualitatively new stage in the development of the Company, which began implementing the Strategy for the period until 2025. Maintaining continuity with the previous stages of the development, Strategy-2025 focuses on creating high added value on the capital invested by the shareholders and doubling the shareholder value of the Company.

According to the General Director, the work carried out in the reporting year resulted in increasing  the consolidated share capital by RUB 51.2 billion and amounted to RUB 709 billion. The total value of the Company’s consolidated assets exceeded RUB one trillion. The value of consolidated assets has almost doubled since commissioning the TANECO Complex in 2011.

Nail Maganov pointed out that high operating results were achieved for all business segments.

According to the SPE-PRMS classification, the Company's proved oil and condensate reserves amounted to 872.3 million tonnes proved taking into account gas reserves amounting to 910.3 million tonnes of oil equivalent,  as of December 31, 2016.

The volume of produced oil for the TATNEFT Group of Conpanies amounted to amounted to 28.7 million tonnes in 2016.

The TANECO production facilities processed more than 8.7 million tonnes of crude oil in the year under report, producing 9.1 million tonnes of petroleum products, including 1.6 million tonnes of the Euro-5 diesel fuel and more than 130 thousand tonnes of aviation kerosene. The TANECO’s diesel fuel corresponds to the world quality standards and is included in the list of "100 best goods of Russia". Fuel products of TANECO have been distinguished with good quality marks.

A significant event of the year was commissioning of a delayed coking unit, which allowed increasing the depth of processing at the TANECO Complex to 99.2% by the end of the year (the average processing depth in 2016 was 79%). The output of light oil products reached 87% (the average value for Russia is 61.1%). The estimated Nelson's oil refining complexity index of amounted to 7.12 points in 2016.

The EBITDA1 growth to the previous year was 6.4%, reaching RUB 165.6 billion.

1 (*) Based on IFRS results, taking into account the results of the banking segment, see Management's analysis of the financial condition and results of operations in 2016 posted on the Company's website.

According to Nail Maganov, the Company will implements the planned business tasks in 2017, paying special attention to reducing operating expenses for all production processes, optimizing the working capital, increasing the efficiency at each site and workplace, as well as application of the most efficient technologies and equipment.

Defining further prospects for the development of TATNEFT, Nail Maganov pointed out that the strategic projects aimed at increasing the efficiency of crude oil production, as well as development of hi-viscosity oil fields and development of the Company's oil refining and petrochemicals production remain a priority.

During the meeting, the present shareholders and invited persons heard reports of the TATNEFT Company’s experts. Nail Ibragimov, First Deputy General Director - Chief Engineer, presented the results of introducing innovations and modern domestic technologies in the Company's production processes.

The report of  Rustam Khalimov, Deputy General Director for Oil and Gas Fields Development and Production, presented the results of TATNEFT's work in the development of the Company’s fields and production of crude oi.

Nurislam Syubayev, Deputy General Director for Strategic Development, presented a report on the implementation of the TATNEFT Group’s development strategy of until 2025.

Leonid Alyokhin, General Director of JSC TANECO, made a report on the results of the Company’s activities and development of the TANECO refinery.

Rustam Mukhamadeyev, Deputy General Director for Human Resources and Social Development, presented to the audience information on the Company's social projects in 2016.

Results of the Shareholders Meeting

The shareholders' meeting approved the annual report for 2015, annual financial statements and the profit distribution for the financial year.

The shareholders also made a decision on the dividends payment. The dividends will be paid on the preference and ordinary shares of PJSC TATNEFT at a rate of 2,281 per cent of the share nominal value (22 rubles and 81 kopecks). July 7, 2017 was fixed as the date for determining the persons entitled to receive the dividends. The deadline for payment of the dividends was determined in accordance with the applicable law. 50 percent of the Joint-Stock Company's net profit will be allocated for the dividend payment based on the results of 2016.

The Board of Directors Was Formed

The following persons were elected to the Board of Directors: Nail Ulfatovich  Maganov, General Director of PJSC TATNEFT; Laszlo Gerecs, Independent Director; Yuri Lvovich Levin, Managing Partner of  BVM Capital Partners Ltd; Rene Steiner, Independent Director; Radik Raufovich Gaizatullin,  Minister of Finance of the Republic of Tatarstan; Nail Gabdulbariyevich Ibragimov, First Deputy General Director for Operations - Chief Engineer of PJSC TATNEFT; Renat Khaliullovich Muslimov,  Consultant to President of the Republic of Tatarstan on the development of oil and gas fields; Rafail Saitovich Nurmukhametov, Head of NGDU "Leninogorskneft"; Rinat Kasimovich Sabirov, Assistant to  President of the Republic of Tatarstan; Valery Yurievich Sorokin,  General Director of PJSC "Svyazinvestneftekhim"; Shafagat Fakhrazovich  Takhautdinov, Assistant to President of the Republic of Tatarstan on the oil industry issues and Advisor to Chairman of the Board of Directors of PJSC TATNEFT; Rustam Khamisovich Khalimov, Deputy General Director of PJSC TATNEFT on Crude Oil Exploration and Production; Azat Kiyamovich Khamaev, Minister of Land and Property Relations of the Republic of Tatarstan; Rais Salikhovich Khisamov,  Deputy General Director - Chief Geologist of PJSC TATNEFT.

Rustam Minnikhanov, President of the Republic of Tatarstan, was appointed as the State representative to the PJSC TATNEFT's Board of Directors.

The Audit Commission was formed in the following composition

Kseniya Gennadyevna Borzunova -  Head of the Economics, Privatization and Strategic Planning Office of Minzemimuschestvo (Ministry of Land Property) of the Republic of Tatarstan; Ranilya Ramilevna Gizatova, Chief of Investments Office of NGDU "Elkhovneft"; Guzal Rafisovna Gilfanova, Deputy Head of the Auditing Office of PJSC TATNEFT; Venera Gibadullovna Kuzmina,  used to work as an economist at the NIS of JSC TATNEFT, a veteran of labor; Taskirya Gaptenurovna Nurmukhametova - Chief Accountant of OOO "Sistema-Service" Management Company; Liliya Rafaelovna Rahimzyanova, Head of Oil Production and Oil Refining  Office of the Ministry of Trade and Industry of the Republic of Tatarstan; Nazilya Rafisovna Farkhutdinova, Deputy Director for Finance  and Economics of OOO "TagraS-RemServis";  Ravil Anasovich Sharifullin, Head of the Control and Audit department of PJSC TATNEFT.

Saria Kashibulhakovna Yusupova, Office Deputy Head of the Ministry of Finance of the Republic of Tatarstan, was appointed to the Audit Commission as Representative of the State.

ZAO "PricewaterhouseCoopers/Audit" was approved as Auditor of PJSC TATNEFT for one year's period to perform a mandatory audit of the PJSC TATNEFT's annual financial statements prepared in accordance with the Russian Accounting Rules.

The annual meeting the shareholders of PJSC TATNEFT also approved amendments to the Articles of the Public Joint Stock Company, to Regulation on the General Meeting of Shareholders, Regulation on the Board of Directors, Regulation on the Management Board, etc.

Forward-looking statements: The present materials contain certain statements about future events and expectations that are forward-looking in nature. Any statement in these materials that is not a statement of a historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements expressed or implied by such forward-looking statements to differ. PJSC TATNEFT shall not assume any obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.

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