Today OAO LUKOIL Board of Directors approved the basic
indicators of LUKOIL Group’s Mid-Term Plan for 2009-2011, as well as the Budget
and Investment Program for 2009.
In view of
the crisis witnessed on the global financial markets and the trend for global
economic downturn, the Company has taken measures to optimize the plans aimed at
ensuring the Company’s own surplus funding in 2009-2011, sufficient financing of
key development projects, dividend payments in accordance with the Company’s
dividend policy.
To ensure strict implementation of the targets set by the Board of
Directors of OAO LUKOIL it is envisaged in particular to constrain operating
and investment costs and reduce the working capital. The capital expenditures are planned in the
range from USD 7.5 billion to USD 9 billion.
Lower
operating, general and administrative costs and better production efficiency may
bring an additional positive effect of almost USD 900 million in 2009 by means
of optimization measures in all business segments of the
Company.
It
is also planned to ensure additional cash flow reserves by means of reviewing
the system of account settlement with
suppliers and contractors in all business segments and also by lowering the
terms and amounts of advance payments. All the above measures are aimed at
better management of the working capital and, eventually, at its reduction, and
also at ensuring an additional cash flow of USD 1 billion in 2009.
‘Such actions, in addition to the scheduled rescue measures, will help provide financial stability
of LUKOIL Group given any development scenario of the global and Russian
economy’, President of OAO LUKOIL Vagit Alekperov said.
Forward-looking
Statements
Some
statements of this press release are not historical facts, but rather represent
expectations or forecasts of future events. Such terms as “consider”,
“anticipate”, “expect”, “suppose”, “intend”, “plan” and other words with similar
meaning are intended to identify forward-looking statements. By their very
nature, forward-looking statements involve inherent risks and uncertainties,
both general and specific, and risks exist that the predictions, forecasts,
projections and other forward-looking statements will not be achieved. One
should be aware that a number of important factors could cause actual results to
differ significantly from the plans, objectives, expectations, estimates and
intentions expressed in such forward-looking statements regarding the future.
Such factors include inflation, interest and exchange rate fluctuations, oil
price, political impact of the Russian Government and changes ensuing from it,
influence of competition in regions of the Company’s presence and areas of the
Company’s business activities etc. The above-indicated list of factors is far
from exhaustive. When relying on forward-looking statements, you should
carefully consider the foregoing factors and other uncertainties and events,
especially in light of the political, economic, social and legal environment in
which the Group operates. Such forward-looking statements speak only as of the
date on which they are published. Given the unconditional observance of all
standing obligations imposed on OAO LUKOIL by the UK Listing Authority, the
Company shall not undertake to update or revise any of them, whether as a result
of new information, future events or otherwise. OAO LUKOIL does not make any
representation, warranty or prediction that the results anticipated by such
forward looking statements will be achieved, and such forward-looking statements
represent, in each case, only one of the many possible scenarios and should not
be viewed as the most likely or standard scenario.
