Following the cessation of the latest session of the Egyptian-Russian Joint Ministerial meeting, Rusneftegaz can reiterate the desire expressed by the Russian delegation to expand our cooperation with both the companies and Ministries of Egypt. Although our organization did not participate in the talks directly, we eagerly anticipate working with officials and our counterparts in the North African country for the mutual benefit of their petroleum industry. Since our interest in conducting operations abroad was first established more than eighteen months ago, we are pleased that the Government of the ancient nation has become increasingly receptive to foreign corporations working on their territory. Over the past two decades, our organization has accumulated the resources and expertise necessary to partially facilitate the new investment required to rejuvenate and revive hydrocarbon production in the country, which is one of the largest net exporters of refined products in the world that is not a member of the Organization of the Petroleum Exporting Countries, otherwise known as OPEC. In spite of the fact a considerable percentage of their oil reserves are depleting and being depleted, Rusneftegaz maintains the capacity to supply a comprehensive range of goods and services that are suited to, and derive from, our extensive experience operating in the extreme climates and conditions of Western Siberia. However, the Arab nation continues to possess considerable reserves of crude yet to be extracted, and therefore Rusneftegaz will also actively consider and participate in tenders for both oil and gas exploration, in addition to supplying equipment to hydrocarbon production companies. Thus, we are prepared to collaborate with Egyptian businesses in comprehensive partnerships to assist the development of one of the largest fossil fuel sectors on the African continent, with Deputy Chief Executive Officer Aleksandr Filyurin commenting: 

“Firstly, we must thank all the members of the Russian delegation at the meeting, who continue to work their hardest to help us fulfil our long-term aim of international expansion. We must also thank all the members of the Egyptian delegation who have worked with us on our international expansion plans over the past couple of years, and will continue to work with us, hopefully long into the future. Egypt, like all the other markets we have considered entering over the past two years, is an exciting market for us to be potentially entering, and I hope that we will be able to announce what we are planning to do sometime soon.” 

Rusneftegaz is continuing our pursuit of growth internationally across a broad range of countries and territories, including in both Algeria and Iran, where talks remain ongoing. Not only does this encompass locations where we may begin extraction, particularly with our proficiency in working on challenging wells, which is particularly relevant in Egypt, but also where we could commence new undertakings. For instance, our management is currently pursuing the acquisition of new electrical generating capacity, either in Russia or aboard, in conjunction with a new international petroleum trading business that will be based at a global hub for our expanding activities. Should there be any further updates regarding our business in Egypt or any other country; we shall endeavor to make a prompt announcement at an appropriate time.

Our annual general meeting was held on 13 April following the publication of our 2017 financial statements; the results of such were approved in addition to our director’s report. These were prepared in accordance with the latest iteration of International Financial Reporting Standards, otherwise known as IFRS, and have been audited. All the resolutions proposed prior to the congress were passed unanimously, including the re-election of the board of directors, motions to reappoint our independent auditor and to retain the existing composition of our audit committee. Foremost, our leadership can disclose a positive economic performance for the twelve-month period, although as per the past four years, there will not be a dividend paid for last year. This is to facilitate our ongoing business strategy, which has significant capital requirements, and will ultimately ensure all projects are completed on schedule. Our current policy of maximizing the investment of our earnings into useful assets will be continued into 2018, as such policies have and will continue to result in greater profits in the future. That said, it should be noted for posterity that adequate levels of liquid cash will be maintained regardless of the amount of funds used. At the culmination of the event last week, our deputy Chief Executive Officer, Aleksandr Filyurin, gave this statement in response to the developments that unfolded:  

“I would like to once again thank our staff for their amazing efforts over the last twelve months; they are responsible for the continued success of this company, and we are forever indebted for their work. Overall, the last year has been immensely positive for this company; we continue to go from strength to strength in all areas of our business. We’re making excellent progress in our investment program, which is on track to be finished on schedule in a couple of years. We’re also making inroads with our international expansion plans, and I am hopeful that we should be able to provide an update on that in the near future. To be honest, I think that everything is going to plan so far, and we are now at the point where we are starting to see the results of our work. We are obviously investing very large sums of money each year to try to make this company more competitive, and fortunately we can start seeing the results of that in the results that we have just announced. We should continue seeing that over the next few years too, and I am quietly confident that we are going to be announcing record revenues and profits every year now for the next few years. There is a lot to be positive about at the moment, and I hope that there is still going to be a lot to be positive about for a long time to come.”  

Presently, we foresee the majority of our growth deriving from energy production, and thus forecast strong revenues in our electricity division next year. This is largely as a result of the investment we have made during the previous three years, and our firm intends to concentrate on investing funds in increasing turnover in this particular unit accordingly. This sector also maintains a symbiotic relationship with our research into hydrogen power, which can be created through the use of electrolysis, and is considered a lucrative opportunity that may yield great results for us someday. Whilst our company adamantly believes that oil and gas is entrenched and will continue to be utilized for the remainder of this century in spite of the messages from environmental propagandists, the board of directors wishes to ensure that we maintain the ability to be adaptable and will therefore support petroleum extraction, coal-fired generation and investments in alternative technologies long into the future. However, it must be noted that contingency plans remain in place to repel any aggressive inclinations against the fossil fuel industry or the Russian Federation, although it is privately hoped that this will not be necessary. Nevertheless, the outlook for our corporation remains wholly positive, with all key indicators suggesting that Rusneftegaz has the capacity to significantly improve our fiscal and operating performance in both the short and long term. Any queries regarding our annual general meeting may be directed via the usual channels, such as by telephone or by email. We necessitate your cooperation and understanding with this matter.   

Rusneftegaz can announce that we plan to revitalize our current website and online presence, with the results expected to be unveiled this summer. Concurrently, we can also disclose that we have appointed Mikhail Kuznetsov as our Director of Information Technology, who has been selected to develop and build a new website for our organization in conjunction with with his newly-hired assistants. foremost, he brings to us a wealth of experience in digital media, having previously completed freelance work for a number of companies in both Russia and abroad. Regarding his new role, Kuznetsov said: 

“I am delighted to have been appointed here. Rusneftegaz is an exciting company with big ambitions, both in Russia and in terms of their planned growth internationally. I am fully committed to ensuring my mission is achieved in the months ahead. I aim to bring fresh innovation to the digital communications of the company, ensuring the potential that the digital world can have on their commercial performance is fully realized.” 

Since his appointment at the end of last year, Kuznetsov and our managers have jointly conducted a review into all of our existing online operations. Consequently, a user-focused strategy has been finalized, and a comprehensive plan has been developed to fundamentally enhance our digital offering. In response to these proposed changes, Director of Operations Igor Migunov said: 

“My colleagues and I have previously reviewed a number of ways to enhance the user experience of the Rusneftegaz website, and now believe that the development of a new website with Mikhail Vladimirovich and his team can become a key part in the advancement of our ambitions for the future.” 

Therefore, a new website will primarily be aimed at educating the wider public regarding our current and future activities, and also providing a greater quantity of corporate and production information. These improvements are intended to increase transparency and offer greater clarity and disclosure in respect of our undertakings. We intend to make further announcements with respect to this update in due course, and necessitate your cooperation and understanding whilst these changes occur.