ANNUAL REPORT 2005 - Lukoil

ANNUAL REPORT, 2005
Company management is always open to dialog with investors, as shown by regular meetings of top
managers with investors and shareholders, organization of visits to production areas for representatives
of the investment community, and holding of conference calls and internet broadcasts on the
occasion of financial information disclosure and presentation of other important Company events.
In 2005 Standard & Poor's once again designated LUKOIL as the leading Russian oil company for informational
transparency. LUKOIL achieved a score of 68% (for comparison, the average score by UK
companies is 71%).
DIVIDENDS
LUKOIL bases its dividend policy on a balance of interests between the Company and its shareholders,
aiming to increase the Company's investment attractiveness and capitalization, and to respect and
strictly observe the rights of shareholders, as set out in acting legislation of the Russian Federation,
the Company Charter and its internal documents.
In making per share dividend recommendations to the AGM the Board of Directors treats as axiomatic
that dividend payment should not be less than 15% of net profit under consolidated US GAAP.
Dividends Paid for the Previous Year,
$ million
800
600
400
200
244
423
467
661
746
The Company has steadily increased dividend payments.
Dividends for 2005 recommended by the BoD for
approval at the AGM on 28 June, 2006, are 33 roubles
($1.20) per common share, which is 17.9% more than for
2004. Dividend yield is 1.3%. Factual dividend payouts by
LUKOIL in 2005 were $746 million, representing 17.6%
of consolidated net profit for 2004 under US GAAP.
Income per common share rose by 52.1% in 2005 to
$7.91, compared with $5.20 in 2004.
0
2001
2002
2003
2004 2005
Year Par value of shares Common share dividend, roubles Preferred share dividend, roubles
1999 0.025 3.00 17.45
2000 0.025 8.00 59.16
2001 0.025 15.00 –
2002 0.025 19.50 –
2003 0.025 24.00 –
2004 0.025 28.00 –
2005* 0.025 33.00 –
* Dividends recommended by the LUKOIL BoD for approval at the Company AGM on 28 June, 2006.
78