Message from the Chairman of the Board of Directors

AppealPhoto
Alexey Miller Chairman of the Board of Directors Gazprom Neft PJSC

Dear Shareholders and Investors,

For Gazprom Neft, 2016 was a year of new successes combined with steady and dynamic development.

The Company launched the full-scale development of the continental Arctic fields Novoportovskoye and East Messoyakha. It continued developing the Prirazlomnoye field on the Arctic shelf, more than doubling hydrocarbon production during the reporting year. This was all a significant step towards achieving the Company’s strategic goal of increasing production to 100 million tonnes of oil equivalent per year.

Effective activities in the oil refining and petroleum product sales segment enabled the Company to strengthen its positions on the domestic market. While motor fuel consumption in Russia declined, Gazprom Neft’s oil refining assets operated at an optimal level of profitability, and the Gazpromneft filling station chain managed to increase sales.

Gazprom Neft paid particular attention to the development of import-substitution products in 2016. The Company continued implementing a national project to establish the advanced and high-tech domestic production of catalysts for secondary oil refining processes. Gazprom Neft ensures continuous growth in the level of technological effectiveness in close partnership with Russian scientific research centres. This provides a powerful stimulus for their development.

A smart strategy and thorough analysis of market conditions helped Gazprom Neft’s business reach a new level of efficiency and ensure unprecedented growth in the Company’s net profit of 82.5%. The Company’s share quotes reached a record high. I am confident that Gazprom Neft will once again reaffirm its status as one of the most attractive Russian companies for investment in 2017.