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Kyiv, Nesterivsky prov., 3/5 |
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| Our Achievements | Management | Corporate Structure | Shareholders | Career Oportunities | |||
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Dear shareholders! Year 2004 became one of the best years for "Ukrnafta" JSC. Management and team of the Company managed not only to strengthen the stabilization tendency, which evolved in the last several years, but also to have substantial achievements in all spheres of economic activity. This allows us entering into the future confidently on the way of transformation into vertically integrated company. As to the production activities, the Company extracted 3 million tons of oil with condensate and 3.35 billion of cubic meters of gas for the first time since 1997, which is the second best result for the period of Ukraine's independence (only in 1999 more resources were extracted). At the same time the ratio of hydrocarbons stock increase to extracted oil (compensation ratio) was the highest. It equaled 57% in 2004 while in 2003 it was only 45%. The volumes of production of gas products also increased: 13% more of liquefied gas and 12% more of light faction were supplied. Realizing the necessity to permanently renovate the production process and fixed assets, we accomplished a lot of work on construction and modernization of pipelines, aggregates and equipment. According to our estimates, this, in total, will allow us to improve significantly the functioning of production and transportation facilities, which will result in increased efficiency of economic activities. As to the financial indicators, our assets and profits increased substantially. Thanks to the implemented measures as to the optimization of all processes and rational expenditures, gross and net sales proceeds went up by 47% as compared to 2003 and profits rose by 51.4% reaching UAH 1 347.2 million. At the same time increase in volumes of hydrocarbons production and sales of products, partially through the own network of petroleum filling stations, strict control over proceeds and expenditures allowed the Company to pay fully in time to budgets of all levels UAH 1 335 million, which is 26% more than in 2003. Rise in our financial potential has positive impact on the "Ukrnafta" JSC shares market quotation: the price of shares grew three-fold during the last year. An important component of our activities is improvement of competitiveness of the Company in the domestic oil products market, which is in line with the concept of transformation into a vertically integrated company. For this purpose we extended our network of petroleum filling stations during the last year from 175 to 391 pieces which work all over Ukraine. Regarding this issue as well as others, the management of the Company is guided exclusively by the criterion of economic expediency. It is worth noting that the Company was one of the first to support the stabilization measures of the Cabinet of Ministers of Ukraine through the network of petroleum filling stations during the oil crises. At the same time the Company and the Government developed efficient and mutually beneficial scheme of extracted oil processing on domestic oil processing plants with further sale of production through the network of petroleum filling stations of "Ukrnafta" JSC. The Company pays a lot of attention not only to economic activities but also
to social issues, including social and health protection of employees. Salaries
and wages of employees grew together with profits and budget payments: the tariff
rates, salaries and wages increased twice during the last year: by 20% and 15%. Sincerely, Igor Palytsya |
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