Thursday, October 19, 2006
Lukoil: announces strategic development program, could invest USD 112bn including buys
Lukoil, the listed Russian oil firm, has announced its strategic development program for 2007-2016.
The program, which could include acquisitions, was presented by president of Lukoil, Vagit Alekperov, in New York, a company statement said.
The strategy of accelerated growth will place Lukoil among the largest global energy companies. The main aim is to achieve increasing growth rates and to maximise shareholder value.
The company’s investment program will total USD78 bn, assuming the conservative scenario, or USD 112bn including acquisitions, assuming the optimistic scenario. In the latter case acquisitions will represent nearly a third of total investments.
The company plans to significantly increase its oil refining capacities in the course of the decade, both in Russia and abroad. Lukoil expects to increase its daily oil refining capacities by more than 70% to 2m barrels by expansion of existing refineries and acquisition of new ones.
The company’s financial policy will remain conservative with debt-to-capital ratio below 30%. This will allow the company to carry out a flexible financial policy and raise additional funding in an efficient manner, both for implementation of large-scale projects and for acquisition of new assets.
The Kommersant daily cited analysts as saying that Lukoil’s presentation aims mainly to increase the company's market capitalisation. The analysts suggested that Lukoil management may want to sell its stake (about 20%) in the company. Earlier, investment bankers recommended that the Russian state-controlled gas monopoly, Gazprom, should consider the purchase of this stake, Kommersant wrote.
Source Company press release(s), Kommersant
The program, which could include acquisitions, was presented by president of Lukoil, Vagit Alekperov, in New York, a company statement said.
The strategy of accelerated growth will place Lukoil among the largest global energy companies. The main aim is to achieve increasing growth rates and to maximise shareholder value.
The company’s investment program will total USD78 bn, assuming the conservative scenario, or USD 112bn including acquisitions, assuming the optimistic scenario. In the latter case acquisitions will represent nearly a third of total investments.
The company plans to significantly increase its oil refining capacities in the course of the decade, both in Russia and abroad. Lukoil expects to increase its daily oil refining capacities by more than 70% to 2m barrels by expansion of existing refineries and acquisition of new ones.
The company’s financial policy will remain conservative with debt-to-capital ratio below 30%. This will allow the company to carry out a flexible financial policy and raise additional funding in an efficient manner, both for implementation of large-scale projects and for acquisition of new assets.
The Kommersant daily cited analysts as saying that Lukoil’s presentation aims mainly to increase the company's market capitalisation. The analysts suggested that Lukoil management may want to sell its stake (about 20%) in the company. Earlier, investment bankers recommended that the Russian state-controlled gas monopoly, Gazprom, should consider the purchase of this stake, Kommersant wrote.
Source Company press release(s), Kommersant
