Gazprom-AR2014

More documents

Recommendations

Info

Board of Directors’ Report on OAO Gazprom’s Development in Priority Areas of Operation in 2014 47 It was emphasised that Gazprom fully met its obligations to Russian consumers, ensuring reliable gas supplies and further expanding gas infrastructures in regions on an annual basis. At the same time, the low payment discipline of Russian consumers remains an issue. The growth in non-payments has become the main reason for OAO Gazprom scaling back the funding for its 2015 Programme of Gas Infrastructure Expansion in Russian Regions. Heat suppliers and residential customers remain the largest debtors. Gazprom Group’s companies are taking measures to improve consumers’ payment discipline, including the prevention of deliberate bankruptcies among heat supplying companies. Reports of illegal activities by the management of such companies are filed with courts. Members of the Board of Directors were informed about the large-scale efforts taken across the country and involving law enforcement agencies to disconnect households with unauthorised connections to gas grids. Intensive efforts are taken to draft proposals on updating existing laws covering gas payments. The Management Committee was instructed by the Board of Directors to continue efforts to improve consumers’ payment discipline and repayment of debt for the supplied gas, as well as liaise with authorities to improve applicable Russian laws. A number of ways to enhance audit efficiency were also considered and a new version of the Regulation on the Board of Directors’ Audit Committee of OAO Gazprom was approved in 2014. To further improve the existing procurement procedures, the Board of Directors adopted the necessary resolutions to amend the Regulation on the Purchase of Goods, Works and Services by Gazprom Group. Improved Corporate Governance and HR Policy Throughout 2014, the Board of Directors paid great attention to the matters related to improving the Company’s management procedures and the implementation of corporate HR policy. Members of the Board of Directors adopted a number of resolutions related to approving transactions with, and management of Gazprom Group’s property and other assets (77 resolutions in total), and to preparing and holding OAO Gazprom’s General Shareholders Meeting. The results of the audit of the corporate governance practices in entities under the Company control were reviewed and a set of corporate governance improvement initiatives was outlined. Resolutions were adopted covering procedural matters of the Board of Directors, election and termination of office of the Management Committee’s members and holding of executive positions at other organisations by the Management Committee’s members. Preventing corporate corruption (meeting held in person on 16 September 2014) OAO Gazprom’s Board of Directors held an ad-hoc meeting to take stock of the initiatives to prevent corporate corruption. It was noted during the meeting that the Company’s efforts in this area strictly complied with Russian laws and corporate regulations. OAO Gazprom has developed and continues to improve the required regulatory, administrative, technical and information frameworks to prevent and suppress corruption. Procedures are maintained to screen existing or potential corporate or individual counterparties for possible affiliation with employees of the Company, its subsidiaries or affiliates to prevent and eliminate any conflict of interest. OAO Gazprom launched a hotline to receive complaints about any incidents of perceived fraud or corruption, conflict of interest, embezzlement, or unlawful use of property or assets, and breaches of prescribed procurement procedures. OAO Gazprom Annual Report 2014
48 Trends and Developments on Oil and Gas Markets In the challenging environment, Gazprom kept its financial stability and ability to run largescale projects. Falling oil prices Oil prices crashed in the second half of 2014, with Brent and Urals losing about 50% of its selling price in the reporting year. Urals performance in 2014, USD per barrel 120 110 100 90 80 70 60 50 40 January February March April May June July August September October November December Note. Arithmetic mean of the daily average quotations for Urals Mediterranean and Urals Rotterdam. This sharp decline was driven by many reasons the most significant being: — deceleration of the oil consumption growth caused by the economic downturn in China, which was the main driving force behind the oil consumption growth in recent years; — increased oil production and reduced imports of oil and petroleum products by the USA; — growth of oil production in Iraq and Libya with other OPEC countries’ output remaining flat; — Saudi Arabia’s reluctance to cut production to keep oil prices high; — slowdown of the global economic growth since mid-2014. Decreasing gas consumption and development of a hybrid pricing model on the European market Europe, one of Gazprom’s three core gas markets, saw a substantial drop in demand in 2014. According to tentative data, far abroad European countries consumed 486.0 bcm of gas, i.e. 54.3 bcm less than in 2013 (decrease of 10.1%). The decrease was caused by: — changed consumption pattern of the European market and the increasing relevance of the weather; — displacement of natural gas with coal in power generation; — the EU energy policy aimed at promoting energy saving technologies and standards to reduce all kinds of energy consumption, and at supporting projects involving renewables. This dramatic reduction in demand was mainly driven by the unusually warm winter of 2013/2014 and mild weather in 2014. Currently, Europe uses gas mainly in the housing and utilities sector. Between 2009 and 2014, its share in natural gas consumption grew from 39.0% to 41.9%. During the reporting year, weather affected performance the most as compared with the previous five years. Structural changes in demand have a material effect on gas consumption volumes. Gas keeps being gradually pushed out from the power industry where its consumption dropped from 33.4% in 2009 to 25.3% in 2014. OAO Gazprom Annual Report 2014
Page 1 and 2: OAO Gazprom Annual Report 2014 The
Page 3 and 4: Contents 4 Statement of OAO Gazprom
Page 5 and 6: 4 Statement of OAO Gazprom’s Chai
Page 7 and 8: 6 Major results Gazprom Group Resul
Page 9 and 10: 8 Company Information OAO Gazprom
Page 11 and 12: 10 Company Information OAO Gazprom
Page 13 and 14: 12 Company Information Track Record
Page 15 and 16: 14 Company Information Gazprom Grou
Page 17 and 18: 16 Company Information Operations a
Page 19 and 20: 18 Business Development Prospects S
Page 21 and 22: 20 Business Development Prospects G
Page 23 and 24: 22 Business Development Prospects E
Page 25 and 26: 24 Business Development Prospects T
Page 27 and 28: 26 Business Development Prospects E
Page 29 and 30: 28 Business Development Prospects P
Page 31 and 32: 30 Business Development Prospects U
Page 33 and 34: 32 Business Development Prospects S
Page 35 and 36: 34 Board of Directors and Managemen
Page 43 and 44: 42 Board of Directors’ Report on
Page 45 and 46: 44 Board of Directors’ Report on
Page 47: 46 Board of Directors’ Report on
Page 51 and 52: 50 Trends and Developments on Oil a
Page 53 and 54: 52 Trends and Developments on Oil a
Page 55 and 56: 54 Performance Results Exploration
Page 57 and 58: 56 Performance Results Distribution
Page 59 and 60: 58 Performance Results Distribution
Page 61 and 62: 60 Performance Results The company
Page 63 and 64: 62 Performance Results Hydrocarbon
Page 65 and 66: 64 Performance Results Transportati
Page 67 and 68: 66 Performance Results Gas transpor
Page 69 and 70: 68 Performance Results Gas Infrastr
Page 71 and 72: 70 Performance Results Hydrocarbon
Page 73 and 74: 72 Performance Results Gazprom, on
Page 75 and 76: 74 Performance Results OAO Mezhregi
Page 77 and 78: 76 Performance Results Major invest
Page 79 and 80: 78 Performance Results European gas
Page 81 and 82: 80 Performance Results In accordanc
Page 83 and 84: 82 Performance Results Oil and gas
Page 85 and 86: 84 Performance Results Sales of ref
Page 87 and 88: 86 Innovations In 2014, the budget
Page 89 and 90: 88 Innovations — produced a techn
Page 91 and 92: 90 Innovations 14 meetings of coord
Page 93 and 94: 92 Environment and Social Responsib
Page 99 and 100:
98 Environment and Social Responsib
Page 101 and 102:
100 Environment and Social Responsi
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
Page 111 and 112:
110 Corporate Governance OAO Gazpro
Page 113 and 114:
112 Corporate Governance Corporate
Page 115 and 116:
114 Corporate Governance Summary of
Page 117 and 118:
116 Corporate Governance Remunerati
Page 119 and 120:
118 Corporate Governance In additio
Page 121 and 122:
120 Corporate Governance Liability
Page 123 and 124:
122 Corporate Governance Audit Comm
Page 125 and 126:
124 Corporate Governance The intern
Page 127 and 128:
126 Corporate Governance Efficient
Page 129 and 130:
128 Corporate Governance Stock Mark
Page 131 and 132:
130 Corporate Governance Dividend P
Page 133 and 134:
132 Risk Management Gazprom has con
Page 135 and 136:
134 Risk Management Customs, curren
Page 137 and 138:
136 Glossary ADR of OAO Gazprom APG
Page 139 and 140:
138 Corporate Governance Units of M
Page 141 and 142:
140 Additional information List of
Page 143 and 144:
142 Additional information 11. Adde
Page 145 and 146:
144 Additional information 27. Bank
Page 147 and 148:
146 Additional information 45. Adde
Page 149 and 150:
148 Additional information 59. Trad
Page 151 and 152:
150 Additional information 68. Trad
Page 153 and 154:
152 Additional information 84. Cont
Page 155 and 156:
154 Additional information 96. Volu
Page 157 and 158:
156 Additional information Inclusio
Page 159 and 160:
158 Additional information Improvem
Page 161 and 162:
160 Additional information These ef
Page 163 and 164:
162 Addresses and Contact Details F
Page 165:
www.gazprom.com
show all

Gazprom-AR2014

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?