Gazprom’s Board of Directors approved Budget, Investment Program and Cost Reduction Program for 2004
Gazprom’s headquarters host a Board of Directors’ meeting.
The Board of Directors considered information on the Company’s preliminary operating results for 2003 and approved the corporate Budget (Financial Plan), Investment Program and Cost Reduction Program for 2004.
The Board of Directors commissioned the Company’s Management Committee to amend the Investment Program and Budget, in case Gazprom received additional income in the 1st half of 2004, and to submit relevant proposals for the Board of Directors’ approval.
The Board of Directors also adopted a resolution to start elaborating the Company’s 3-year draft investment programs and budgets from 2004 onwards.
Results for 2003:
- the Gazprom Group’s gas production amounted to 540.2 bcm in 2003, 8.5 bcm up from the Company’s target amounts and 18.3 bcm up on the previous year;
- in 2003 Gazprom’s gas exports to Western countries and the FSU averaged 133.5 bcm (4.9 bcm up on 2002) and 42.8 bcm (500 million cubic meters up on 2002), respectively;
- Gazprom delivered 294.8 bcm of gas (12.9 bcm up on the previous year) to Russian consumers via the United Gas Transportation System;
- the Gazprom Group’s net profits are expected to hit a record of some RUR 208 billion.
Plans for 2004:
- for the 1st time in the past few years, Gazprom’s Budget (Financial Plan) was approved with a RUR 10.7 billion surplus.
- the Company’s financial borrowings for 2004 are estimated at RUR 150 billion;
- Gazprom also approved a RUR 30 billion Investment Program;
- Gazprom’s target investments for 2004 are estimated at RUR 212.3 billion including RUR 192.3 billion of capital investments and RUR 20 billion of long-term financial investments. The Company’s investment policy is mainly aimed at resourcing gas transportation as well as gas production (over 54% and 26% of the corporate capital investments, respectively).
Information Directorate, OAO Gazprom