President of Lukoil Vagit Alekperov is confident that the company will successfully overcome the cycle of low oil prices and continue to implement its strategy.
"I am sure that we will successfully overcome the next price cycle and continue the implementation of our long-term strategy and sustainable business development," he said in a statement in the company annual report.
Alekperov emphasized that the creation of the shareholder value remains the key objective of the company in any macroeconomic environment. He recalled that 2020 brought the oil industry a shock in the form of a catastrophic drop in hydrocarbon demand due to the coronavirus pandemic.
"This had an extremely negative impact on oil prices and production volumes, both for economic reasons and within the framework of international agreements. In this regard, I want to once again note the high resistance of our business model to such shocks," TASS cited him as saying.
The President of Lukoil emphasized that the company is characterized by high operational and financial flexibility, low production costs, a high level of vertical integration, and a very strong financial position.
