ENERGY FOR PEOPLE - JSC Gazprom Neft

JSC GAZPROM NEFTANNUAL REPORT2009At year-end 2009 growth in the price of Company shares was recorded: over theyear the price increased 170.7% (in RTS Trading) to be quoted at 5.55 USD atyearend. JSC Gazprom Neft capitalization as of 31.12.2009 was 26.31 bn USD.Among the major external factors that positively affected the price of Companyshares, the investment community singled out the following:AArecovered oil prices;AAa number of successful M&A transactions;AApositive changes in fiscal policy of governmental authorities regarding oilcompanies.CHANGES IN THE PRICE OF JSC GAZPROM NEFT SHARES, MICEX OIL ANDGAS INDEX AND PRICE OF URALS300%250%200%150%100%50%0%Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecJSC Gazprom NeftMICEX Oil & Gas indexUralsSOURCE:MICEXDespite a substantial increase incapitalization in 2009, there exist seriousfundamental prerequisites for furthergrowth of the Company’s shareholdervalue – it is the best “value-added”business among Russian companiesin terms of the depth of refining,availability of distribution capacities andplans for further development of thedistribution business which, under thecurrent tax regime, create considerablevalue for the Company. Judging bythe commonly accepted market valueindicators, JSC Gazprom Neft 2009was underestimated by the market incomparison both with international oilcompanies and Russian competitors.All these factors provide a significantcompetitive edge for the Company,creating a considerable value growthpotential in the long-term.CHANGES IN THE PRICE OF JSC GAZPROM NEFT SHARES, RTS OIL ANDGAS INDEX, AND PRICE OF URALSSOURCE:RTS300%250%200%150%100%50%0%Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecJSC Gazprom NeftRTS Oil & Gas IndexUrals131