OAO LUKOIL held its Annual General Shareholders Meeting inMoscow today to approve 2007 annual report and financial statements based on the fiscal year results.
The shareholders approved dividend distribution based on the Company’s performance in 2007 in the amount of 42 rubles per ordinary share (38 rubles in 2006).
The size of remuneration and compensation of expenses to members of the Board of Directors and the Audit Commission was also approved. ZAO KPMG was approved as LUKOIL’s independent auditor. The Annual General Shareholders Meeting also elected the Board of Directors and the Audit Commission and approved interested-party transactions.
The following Board of Directors of OAO LUKOIL was elected by the shareholders:
Vagit Yu. Alekperov - President of OAO LUKOIL
Igor V. Belikov - Director of the Russian Institute of Directors
Donald Evert Wallette, Jr.- President of Russia/Caspian Region, ConocoPhillips
Valery I. Grayfer - General Director of OAO RITEK
Oleg E. Kutafin - President of the Moscow State Academy of Law
Ravil U. Maganov - First Executive Vice President of OAO LUKOIL
Richard H. Matzke - Former Vice Chairman of Chevron Corporation
Sergei A. Mikhailov - General Director of OOO Management-Consulting
Nikolai A. Tsvetkov - Chairman of the Board of Directors of OOO Upravlyayuschaya kompaniya Evolyutsia [Evolution Management Holding Company]
Igor V. Sherkunov - Chairman of the Board of Directors of ZAO Investitsionnaya Gruppa Kapital [Capital Investment Group]
Alexander N. Shokhin - President of Russian Union of Industrialists and Entrepreneurs (employers)
Valery Grayfer, General Director of OAO RITEK, was elected Chairman of the newly elected Board of Directors at the Board of Directors Meeting held after the Annual General Shareholders Meeting.
In their address to the shareholders, Vagit Alekperov, President of OAO LUKOIL, and Valery Grayfer, Chairman of the Board of Directors, pointed out that 2007 had witnessed outstanding financial results and implementation of new large-scale projects. The Company continued to develop in line with its long-term strategy and to consolidate its competitive positions on the global energy market.
In 2007 the Company’s net profit grew by 27.1% to a record level of USD 9.5 billion. Return on average capital employed came to 22.2%. Operating cash flow was significantly higher than in 2006, and came to USD 10.9 billion. This enabled the Company to finance USD 9.1 billion of capital expenditures. Thanks to record financial results in 2007, the shareholders were advised to approve the dividends of 42 rubles (USD 1.80) per share, which is by 10.5% higher than 2006 dividends. Dividend yield will be highest in three years and come to 2.1%.