For the second year in succession, we hosted our annual general meeting electronically via a video teleconference on 9 April, following the publication of our 2020 consolidated financial statements earlier in the week. During the event, the board discussed our fiscal results for the last year, which were later unanimously approved alongside the corresponding director’s report. These documents were prepared in accordance with International Financial Reporting Standards, otherwise known as IFRS, and have been audited as per relevant legislation. All proposed resolutions were passed, including the vote to re-elect each of our current directors and a motion to reappoint our independent auditor. Moreover, it has also been resolved that no alterations to the composition of the audit committee are required at this present time, and in lieu of the ongoing coronavirus pandemic, we will not be paying a dividend for the last year. Those involved expressed their optimism that this would be the final assembly held online, and that the next session in 2022 will be held at a venue. Currently, we have no plans to make arrangements for an extraordinary general meeting this year, but this is subject to change at short notice. At the end of the day, the primary outcome of what unfolded on the day was broad consensus amongst the participants in the plenary that there were numerous reasons to be positive in spite of the clear challenges posed throughout the previous twelve months. Immediately thereafter, our Deputy Chief Executive Officer, Aleksandr Filyurin, gave this statement:
“I think that first and foremost, I once again need to thank our staff for their incredible efforts over the last year. It has obviously been a very difficult time, and it has obviously taken an extraordinary effort to keep everything going as usual. Now, I cannot predict the future; I don’t know how long this is going to last. When you read about it, you read how the average pandemic in history lasts for three years, and obviously that means that we are probably still at the beginning of this thing, and we probably still have a long way to go before everything returns to how it was back in 2019. Now, I think I can speak for most people when I say that is far from an ideal situation, but if that is going to be how it is for the next few years, it is what it is. However, I would say that we have adapted well so far, and that is obvious when you look at the results we have just announced. When you think back to this time last year, when we were thinking that we would be making massive losses, and that we might have to shut down production. Well, evidently that hasn’t happened, and I think that is a great reflection of the strength of our company. Considering this is probably the worst crisis we have faced in our corporate history, I would say that we have dealt with it incredibly well. To be honest, if this is the worst it will ever get for us, it makes me incredibly confident about our future.”
Overall, despite the fact that our trading business was significantly influenced by factors outside our control over the last twelve months, we managed to register an enviable economic performance. Revenue and profits for the year were stronger than expected, and although both such figures are lower than in 2019, strong cash flows have enabled our organization to be able to sustain our existing levels of expenditure in infrastructure accordingly. Contrarily, the outlook for 2021 continues to be poor, with restrictions continuing in key markets through the first quarter of the year. Management forecasts that electricity demand shall not recover until late 2021 at the earliest, and the price of oil futures will continue to be hard to accurately and reliably forecast. Notwithstanding the notion that Rusneftegaz maintains healthy balances of liquid cash, the board of directors has opted to curtail our investment program for this year and will make decisions regarding future periods in due course. While our leadership believes it is in a fortunate position to withstand a long-term pandemic, there are still sufficient reasons to be concerned with prolonged political tensions within the oil industry that could destabilize operations both in the short and long term. However, our corporation holds a universal and adamantly held belief that we will emerge from this global crisis resolutely and will remain steadfast, determined and capable of conquering all challenges ahead. Any queries pertaining to our annual general meeting may be submitted to us via the usual channels of telephone and email for a prompt reply. We politely request cooperation and understanding with this matter.