TATNEFT’s Board of Directors Summed up the Company’s Activity Results for the First Half of the Year

The results of financial and economic activities of PJSC TATNEFT for six months of 2022 were considered at a meeting of the Board of Directors of PJSC TATNEFT chaired by R.N. Minnikhanov, President of the Republic of Tatarstan. In general, the financial and economic indicators for the first half of the year exceeded the forecast figures mainly due to the growth in prices for crude oil and oil products, as well as the measures taken to improve the production efficiency and rational use of resources. At the same time, the results of operations in the second quarter of 2022 were put under pressure by the strengthening of the ruble, as well as due to the changes in the composition of the Group's business and a number of other factors.

The Board of Directors considered the issue of implementing the Strategy of the TATNEFT Group development in the current conditions. Despite the change in the external environment and the exit from the Tyre Manufacturing Business, the Company maintains a strong position. Resource potential, technological competencies, business diversification in crude oil refining and petrochemicals production allow supporting the status. The goals in the crude oil production segment are also planned to be achieved through strengthening competencies and developing the oilfield service unit, which allows significantly reducing the non-productive time, reducing per unit costs and improving the quality of the work performed and the accuracy of fulfilling the plans of internal customers.

The Company remains committed to the Sustainable Development Goals of the UN Global Compact. Among the strategic options, TATNEFT considers achieving carbon neutrality by 2050 in terms of controlled emissions. The work aimed at improving the energy efficiency will be continued; the development of low-carbon technologies, including the production of renewable energy; as well as the one aimed at the recovery, utilization and disposal of the carbon dioxide, and the expansion of compensatory new forest plantations.

The growth of labor productivity, effective cost management, and development of human capital remain in the focus of strategic priorities.

The information about the budget execution results for seven months of 2022 was presented to, the meeting participants they approved the Company’s budget for September of this year and considered a number of other issues related to the current activities of TATNEFT.

Also during the meeting, Nurislam Syubayev, Deputy General Director for Strategic Development, was awarded the medal of the Order of MERIT for the Fatherland, II degree for many years of fruitful work and a great contribution to the development of the oil industry.