Rusneftegaz can announce that from Monday 15 June all of our offices in Russia shall partially reopen, including our headquarters in Moscow, with our international office in New York reopening at a later date. As a result, the majority of administrative capacity will have been largely restored, and it is no longer anticipated that there shall be any delays to telephone or electronic inquiries or communications. Whilst a significant percentage of staff shall continue to work remotely, management has made further alterations to the layout of said workplaces in order to accommodate distancing measures and maintain the highest standards of hygiene. In response to this bulletin, our Deputy Chief Executive Officer, Aleksandr Filyurin, gave these remarks: 

“I am delighted that we can reopen all our offices in Russia after what has been a tough time for Rusneftegaz. I know that it has also been a very tough time for a lot of our staff too, and I know that there is a lot of hesitancy about reopening our offices after what has been a very long period closure. I hope that now we can alleviate some of their worries before everyone returns to work. We have been working very hard to make sure that our reopening is as safe as possible, and that we prevent the potential threat of coronavirus spreading amongst our us. Speaking from a personal perspective, I would not be returning if I felt I was at risk here, I have no I intention of placing my family in danger. We have worked very hard to make sure our offices are a safe and secure environment. I look forward to seeing many of my colleagues again after what has been a very long time.” 

All employees arriving for work on Monday shall receive a comprehensive briefing in regards to the new guidelines, including the regular use of sanitizer, how to clean workstations effectively, the deployment of personal protection equipment and how to prevent contagion. All employees should also be reassured that offices will continue to be deep cleaned regularly by external contractors, and that anyone with any queries should contact their manager at their earliest convenience. Questions from third parties may also be directed via the conventional channels if required, including by telephone, email, fax and the contact form on this website. We necessitate your cooperation and understanding as we seek to return to normal operations.

Rusneftegaz hosted our annual general meeting electronically on 29 May, seven weeks later than the original scheduled date of 10 April due to the ongoing coronavirus outbreak that is causing plight around the world. During the video conference, the board discussed the results disclosed in the 2019 financial statements, which were unanimously approved alongside both the director’s report and the pandemic mitigation plan. These accounts were prepared in accordance with International Financial Reporting Standards, otherwise known as IFRS, and have been audited pursuant to all applicable laws. All the other proposed resolutions were passed, including the re-election of the board of directors and a motion to reappoint our independent auditor. Moreover, it has also been resolved that there will not be any alterations to the composition of our audit committee, and in lieu of the current situation, no dividend will be paid for last year. In response to the disclosure of our fiscal data for the past twelve months, our Deputy Chief Executive Officer, Aleksandr Filyurin, issued this statement:   

“I would like to once again put on record our thanks to our staff who have worked so hard over the last few months despite everything that is going on at the moment. As I think everyone can appreciate right now, we are in a completely unprecedented situation, and we are doing everything that we possibly can to manage this situation as best we can. That said, we obviously have done really well over the past year, and I am incredibly proud of our achievements. I mean, not only did we manage to open a trading office in New York, but we also managed to complete our first five-year investment plan on time and on budget. To be honest, I don’t know if we are going to manage to complete the next one that we published last week in the same amount of time, but we will try our best. I just hope that everyone who works for us understands that we are in a really strong position right now; we aren’t going to need any government loans to pay wages like a lot of other companies are. I am confident that whatever happens, everything is going to be okay for this company in the end.”  

Whilst we are undoubtedly going to face great challenges ahead due to the ongoing health crisis, we can report profoundly successful results for last year, achieving the highest revenues in our corporate history and an excellent pre-tax profit. This is largely as a result of oil sales derived from international sources, with global commodity transactions set to become a key tenet of our future growth strategy. This includes turnover from the newly established office in New York, which began multinational trading in the weeks prior to the publication of these financial statements. Such actions are a major element of a plan to lessen our exposure to the volatility of the Russian ruble, which has fluctuated considerably over the previous decade to the detriment of our enterprise. It has, however, been asserted that the primary objective of the board should be to continue to invest and pool both monetary and intellectual resources into the expansion of our electricity generation division, as it forecasted that this will yield the greatest economic benefits for our organization. Overall, we predict that our currency conversion costs will climb significantly following the collapse in its value during the first months of 2020. Such declines, which happened as a consequence of the coronavirus pandemic, are expected to be replicated throughout our reporting for this present year.  

Our management also expects material cost increases arising from the mitigation procedures that were introduced in March 2020, including minimizing the numbers of personnel operating within the vicinity of others, postponing the annual general meeting and enforcing the non-working period for administrative staff as mandated by the government. Rusneftegaz has additionally been greatly afflicted by the worldwide collapse in the value of oil, with our most pessimistic forecasts suggesting that the market for refined products may not rise above $20.00 per barrel for the remainder of the year. Veritably, our board estimates that there shall be sufficient storage for unsold petroleum reserves until at least the fourth quarter of the year and thus may elect to write off the fiscal results for this year entirely rather than sell at below-cost price. Our company is also actively monitoring the geopolitical situation between Russia and Saudi Arabia, who may opt to increase production to further reduce commodity prices to undermine the shale oil industry in the Americas. Internal economists forecast that the impact of the ongoing crisis will be monumental, and while the Russian crude oil sector is more resilient than other global competitors, it is projected that 2020 could yield the largest losses in our history. As a comparatively small supplier, our leadership still does not expect that any authority will demand any cuts in extraction rates, but we may do so voluntarily.  

It is commendable that we have adequate technical expertise in order to manage our resources intelligently, and in doing so, we have accrued vast volumes of cash reserves that can be utilized in this time of need. Similarly, our firm has no outstanding loans or borrowings and is therefore able to withdraw lines of credit with ease if necessary. Needless to say, a dividend will not be paid this year in the current market conditions, but neither is it anticipated that any equity investments will be required to continue trading. As such, our organization is currently enacting our international expansion plans and shall pursue this regardless, but more gradually than initially proposed due to circumstances beyond our control. Although the immediate outlook is bleak, our management is optimistic about the likelihood of expanding power generation capacity in the near future. Despite the forthcoming challenges, Rusneftegaz can look forward to more prosperous times ahead. Any queries in relation to our annual general meeting or regarding our business on the whole may be submitted via the conventional channels, albeit a response may be delayed by the present events. We require your cooperation and understanding at this critical time. 

Rusneftegaz can announce that we have conceived a new, five-year investment plan following the conclusion of the previous program, although these documents will not be circulated publicly. The latest iteration acts as an immediate successor to its precursor, and will continue to build on the developments made during the previous decade, with a renewed emphasis on replacing the remaining aging and inefficient infrastructure. Whilst the implementation of the previous scheme has been perceived by management to be a comprehensive success, there is disappointment that the growth in our business internationally was not equaled by the gains within the Russian Federation. Therefore, the board of directors has designated a substantial sum to fund the purchase of foreign power generation assets as soon as a viable location becomes available to acquire. Likewise, a comparable total has also been apportioned to ensure that there are sufficient monies to overhaul the plant to contemporary standards. As a consequence, it is projected that total expenditure on properties and plant for the next sixty months will be broadly similar to the amount spent under the last investment plan, which in itself was a significant increase on the previous programs. In response to this disclosure, the Deputy Chief Executive Officer, Aleksandr Filyurin, remarked: 

“I am delighted to be able to reveal the next phase of our investment plan today. The plans we have set forth demonstrate not only our ambitions as directors, but also our ambitions as a company. Personally, I think of the investments we have made over the last five years framework from which we can build upon. It is not a finished project, so to speak. Yes, we have spent large amounts of money replacing old equipment; we now have an international trading network, and these are great achievements. But now we need to focus on taking Rusneftegaz to the next level. When we first thought of changing our business plan in 2015, it was not just the case of a five-year plan; it was a plan to transform the company in the long-term. It is not unreasonable to say that we cannot compete with other oil companies in terms of resources, and that is exactly why we have to be intelligent with what we do. We cannot go out there and buy all the oilfields that are owned by much larger oil companies. But if we manage to expand our trading network, we can expand our revenue. If we can buy new power plants, we can expand our profits. When both of these things happen in unison, this plan is the perfect way of growing Rusneftegaz responsibly.” 

The rapid expansion of our energy business has become a fundamental tenet to our wider development plan. The board of directors currently perceives Rusneftegaz as an organization in transition, from being solely an operator in the petroleum industry, to one that has multiple interests in affiliated sectors. Such an evolution was first contemplated in 2015, when our company published major revisions to our commercial strategy entailing significant growth domestically, but perhaps more notably, across the globe. These bold schemes should continue to yield strong economic data for Rusneftegaz in the near and distant future. However, despite the fact that it was previously envisaged that the financial statements for 2020 would serve as an indicator for the performance of our investments over the past five years, however, these judgments will be materially affected by the coronavirus pandemic, which will severely impact our results. Since the beginning of March, commodity prices have collapsed, and our corporation is no longer forecasting revenues or profits for the remainder of the twelve-month reporting period. Nonetheless, the health crisis itself is not expected to hinder the implementation of this set of proposals, although if it endures for a prolonged length of time, this spending shall be delayed accordingly. This most notably includes the planned acquisition, and in some instances, installation, of the larger assets embedded within the program. To facilitate these purchases, our management shall review all options available, including from entities located abroad. Whereas previously Rusneftegaz prioritized goods manufactured within the borders of the Russian Federation, primarily due to the risk of further restrictions being imposed, circumstances have now changed. The board of directors now believes that there is no risk of any additional limitations being placed on American and European companies trading with those headquartered in Russia, ensuring that any equipment sold can still be protected by the relevant guarantees, and also maintained under the terms of service contracts between Rusneftegaz and the manufacturer. This ultimately, in concert with the other elements in this scheme, should result in our corporation deploying the best available technologies in the years and decades ahead.