LUKOIL BOARD OF DIRECTORS SUMMARIZED PRELIMINARY 2017 RESULTS
Friday, January 12, 2018
The LUKOIL Board of Directors held a meeting in Moscow today to summarize the Company's preliminary 2017 results and set priorities for 2018 under the new Strategic development program for 2018-2027.
It was emphasized at the meeting that the Company accomplished major operational goals for 2017, delivered significant progress in the development of key projects and generated high level of free cash flow, despite of the volatile market environment and external production limits.
Among key priorities for 2018 the Board of Directors set cost optimization and efficiency improvements on existing and new projects, attainment of key performance indicators including hydrocarbon production growth, as well as accident-free performance.
"Long-term development program approved by the Board of Directors in December last year, is primarily targeted at the efficiency improvements and growth in the financial results. It also includes a number of important changes that we plan to implement already in 2018. In particular, as part of the strategy approval process, the Board of Directors supported the management initiative to cancel the major part of LUKOIL treasury shares and use the remaining treasury shares in a new long-term incentive program for key employees, as well as the initiative to establish a share buyback program as an incremental mechanism to distribute capital to the shareholders. I think these changes will further support the growth of the Company's shareholder value," President of LUKOIL Vagit Alekperov said during his speech at the meeting.