Tatneft sees capitalization returning to pre-crisis level in 4 yrs

MOSCOW, Nov 6 (PRIME) -- Russian oil company Tatneft expects that capitalization will return to the pre-crisis level in three to four years under a conservative scenario, company Aton said in a report after Tatneft's investor day late on Thursday.

"Tatneft forecasts return of capitalization to the pre-crisis level in the timespan of three to four years, assuming a conservative scenario and oil prices at U.S. $40–50 per barrel," the company said.

The company is discussing ways to raise capitalization, including the purchase and conversion of preferred shares into common stock.

Tatneft also plans to keep the current dividend policy that envisages payment of the entire cash flow but at least 50% of the net profit.

Aton also said that Tatneft plans to invest 40–50 billion rubles in refining on the Taneko facility in 2021 and raise production by 7% to 12.3 million tonnes, including 6.3 million tonnes of diesel fuel.

Tatneft expects to produce 500,000 barrels of oil per day until the end of 2020, while the 2021 output will depend on the terms of OPEC plus deal. Capital expenditures are estimated at 24–95 billion rubles.

(78.4559 rubles – U.S. $1)

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