RussNeft Shareholders Consider the Possibility of Conducting IPO in 2006 but don’t Take it in as End in Itself, said M.Gutseriev.

At the same time M.Gutseriev pointed out the decision on the stock floatation would be made basing on market conditions, requirements of the company in financing and some other factors. “IPO is not an end in itself,” said he also noting that there were no clear guiding lines on the size of share holding which Russneft could place at the exchange. According to him, it could be both 10 and 25% holding.
RussNeft President also informed that the company would change over to the international accounting standards by the middle or end of next year. In the nearest future it is going to improve its corporative structure by consolidating its assets regions-wise.
Presently the shareholders of RussNeft are Mikhail Gutseriev and some private persons. “The controlling stake up to 70% is controlled by me,” said the head of Russneft. The rest shares are under control of his relatives, M.Gutseriev said.
According to Gutseriev, RussNeft profit for 9 months comes to $500 million without capital investments of the company. According to the results of the year the company anticipates  $700 million profit.
It’s to remind that in November Vice-President of RussNeft on Corporate Relations Dmitry Romanov said the company was considering the possibility of conducting the IPO, though floatation of shares in 2006 looked doubtful. D.Romanov noted that to conduct the IPO Russneft had to consolidate its assets and be a full value vertically integrated company. At that time the company had no its own refinery and processed its feed under processing agreements. In December Russneft reached an agreement in principle with the shareholders of ‘Krasnodarsky Oil Refinery - Krasnodarekoneft’ ZAO on acquisition of 75% stake and completed the deal with TNK-BP on the purchase of the Orsk Refinery and Neftemaslozavod.