LUKoil presents its new restructuring program

The LUKoil company has organized a presentation of its new restructuring program. Before the privatization of its state stake expected in autumn, the company announced its plans regarding the increase in capitalization and receiving an additional $500m in net profits. Analysts are glad at the rare openness of LUKoil but they are not sure about the precise and quick attainment of the goals set by the company. The management of the private company is not concealing the fact that currently "LUKoil is facing a considerable 'state' task - to sell its stocks at a maximum price". At least, that is how deputy president of the company Leonid Fedun explained the appearance of the restructuring program on April 22. First Deputy Property Minister of Russia Alexander Braverman and Chairman of the Russian Federal Property Fund Vladimir Malin, as well as analysts were invited to the presentation. Thus, publishing the pre-sales preparation of the state stake was carried out in full. It is planned to perform the privatization by issuing American Depository Receipts on the foreign market. The main confession of LUKoil was that now the company which used to be most active urging its competitors to reduce oil exports in support of OPEC, was going to increase these exports like its rivals. "Our focusing on satisfying the domestic market in 2001, which was more intensive than at our competitors, affected the financial results of the company negatively", the company concluded. According to Fedun, in eight years the company is going to double oil extraction (from 80 million tons up to 140-160 million tons per year) and to provide more efficient system of oil and oil product exports, the Izvestia newspaper reported.

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