Business model

Gazprom Neft’s business model is based on the principle of vertical integration. Operating at all stages of the production chain (in both the upstream and downstream segments as well as sales and marketing) it allows the company to remain resilient and enhance its operating efficiency in the future.

Creating stakeholder value

	What we do	2019 results
Shareholders and investors Long-term value growth High level of dividend yield	Ongoing communications with investors, shareholders and analysts to maintain a fair price for Gazprom Neft securities Developing a well-balanced corporate governance system to ensure compliance with Russian and international best practices, taking into account the specifics of the industry Transparent reporting of development strategy implementation Fair dividend policy Respecting minority shareholders’ rights Continuously developing a risk-management system with highly detailed levels of responsibility	Gazprom Neft share price as at 31 December 2019: ₽420.2 per ordinary share (+21.2% year on year) Dividend payout for 6M 2019: 40% of consolidated IFRS result Dividend yield: 8% for 2019
Customers and consumers Readily available and stable energy supplies Good consumer value and environmental performance of products	Expanding direct sales to corporate clients through the directly-owned distribution network Expanding the Gazpromneft filling station network and developing its loyalty programme Partnerships with leading petroleum-product customers Developing and manufacturing products with enhanced consumer and environmental properties Increasing the efficiency of distribution channels by business process digitalisation and developing communication channels for customers and contractors	Leading positions in premium petroleum-products markets 11.9 million participants in the Gazpromneft filling station network’s loyalty programme All motor fuels are compliant with the Euro 5 environmental standard Jet fuel supplied to 283 airports in 67 countries worldwide Bunkering in 35 ports in Russia, Romania, Latvia and Estonia Lubricants supplied to 80 countries Gazprom Neft is the first Russian oil company to have its own bitumen terminal network
Employees A stable employer offering professional development opportunities A competitive compensation package	Systematic recruitment and employee rotation programmes Talent management, competency development and training Developing motivation programmes and building a culture of engagement Increasing employees’ productivity and organisational efficiency Increasing efficiency of human resources management	The company has topped the Randstad Award ranking of the most attractive employers in Russia The average monthly salary in the company is ₽134,000 (up 9.3%).
Local communities Corporate responsibility and regional development	Making significant tax contributions to local budgets Contributing to the development of social infrastructure Minimising negative environmental impact Supporting local initiatives	Gazprom Neft is a major taxpayer in the key regions of its operation ₽37 million allocated in 2019 for grants under the ‘Home Towns’ Programme; 143 projects implemented Social investments by Gazprom Neft under social and economic agreements with regional governments totalled ₽2.9 billion
Government Energy security Tax payments Technological development of the Russian oil and gas industry	Stable production growth and efficient oil refining with an extensive distribution network for petroleum products Implementation of the first major offshore project (Prirazlomnoye) and integrated development of the Russian Arctic shelf Developing a centre of technological excellence and ensuring technological independence	Hydrocarbon production: 96.1 mtoe Over ₽700 billion paid in tax and other statutory payments in 2019 Extending productive life of mature fields through the use of cutting-edge technologies Creating tools to remove regulatory industry barriers through the Digital Oil and Gas industry-wide working group