Tatneft' : TATNEFT’s Board of Directors Meeting Was Held

A regular meeting of PJSC TATNEFT Board of Directors chaired by R.N. Minnikhanov, President of the Republic of Tatarstan, was held in Kazan on April 26, 2019.

Pursuant to the meeting agenda the results of execution of the 1st quarter 2019 budget were presented and the budget for May of the current year was approved.

The results of the Company's financial and economic activities in 2018 were presented at the meeting. PJSC TATNEFT produced 29 million 192 thousand tonnes of crude oil, including 1 949 thousand tonnes of highly viscous oil, at its fields over the past year. There were 445 new production and 296 injection wells put into operation. The volume of collected associated petroleum gas amounted to 923 million cubic meters in 2018.

Net revenues (excluding VAT, export duties and excise tax) from the sale of the products supplied were RUB 793.2 billion and the net income RUB 197.5 billion (data for PJSC TATNEFT in accordance with the Russian Accounting Standards). The sum of accruals for payments to the budgets of all levels, including taxes and other payments, amounted to RUB 486 billion in 2018, which was RUB 166.1 billion higher than during the same period last year due to increased mineral extraction and income taxes payments.

RUB 97.8 billion were allocated towards the implementation of the investment program for all businesses of TATNEFT Group.
The Board of Directors considered the issue on PJSC TATNEFT's representative office in the Republic of Uzbekistan, which the Company is planning to open in the city of Nurafshon (the administrative center of the Tashkent region).

The Board of Directors also considered a number of other issues during in the meeting, including relating to the operations of the Company's subsidiaries, the information on the consolidated financial results (under IFRS) of TATNEFT Group for 2018, the audit of the financial results of the Group by PricewaterhouseCoopers Audit, and the Annual General Meeting of Shareholders.

The Board of Directors resolved to recommend to the Annual General Meeting of Shareholders to be held on June 21, 2019 to approve the dividends based on the results of 2018, taking into account previously paid dividends for the six and nine months, in the amount of 8491% of par value on the preference shares and 8491% of par value on the ordinary shares, or 84 rubles 91 kopecks (taking into account previously paid dividends for the six and nine months of 2018 in the amount of 52 rubles 53 kopecks) on each preference and ordinary share of PJSC TATNEFT. The amount of the dividends recommended by the Board of Directors equals to 100% of net income of PJSC TATNEFT for 2018 under the Russian Accounting Standards. Upon reaching a decision on the recommended dividend the Board of Directors relied on the dividend policy of the Company pursuant to which all free cash not used for the fulfillment of obligations (including social) and investments can be distributed in the form of dividends. The list of persons entitled to the dividends is proposed to be drawn up based on the shareholding as of 5 July 2018.

Forward-looking statements and waiver of liability:This press release contains statements about future events and expectations that are forward-looking in nature. Any statement in this press release that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements expressed or implied by such forward-looking statements to differ. PJSC Tatneft assumes no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements. The amounts and percentages mentioned or referred to in this press release could be presented after rounding and, therefore, they might differ from the actual sums and results contained in the Company's reporting documents. PJSC Tatneft shall bear no responsibility to correct or reimburse any sums which might constitute the difference between the amounts mentioned in this press release and those in respective reporting documents, and all payments are made by PJSC Tatneft exclusively on the basis of decisions made by its authorised corporate bodies in the amounts and within the corporate proceedings set out in such decisions.