CORE BUSINESSES

Neft Magistral has established itself as a leader in a whole spectrum of refined petroleum products in Russia. Through established distribution networks with sister companies in Russia, Neft Magistral seeks to reinforce its strong foothold in two product lines across all geographical regions.

1. Refined Petroleum Products, primarily:

  • Gasoline (A 92, 95 and 97) - supplying 35% of national consumption
  • Diesel oil - producing 32% of national consumption
  • LPG - accounting for 30% of market share
  • Kerosene/Jet A1 and fuel oil - delivering 9% of domestic consumption

Petrochemical products - primarily Propylene and Polypropylene (PP) and Paraffin/Asphalt, satisfying 15% of the market demand.

Neft Magistral has stayed focused on its core business without venturing into noncore sectors. It provides over 30% of Russia’s supply of refined oil. Gasoline (RON92 and RON95) and diesel oil are Neft Magistral’s two major products accounting for 80% of Neft Magistral’s revenue and cost of goods sold. Through expanding its research and development capabilities it has successfully enlarged its portfolio of products to include new derivatives such as E5 and A97. All products meet strict national standards and technical regulations

MARKET POSITION

Recently, Neft Magistral products have occupied about 30% of total domestic market demand. With the fast and stable growth and development of Russia, the market for Neft Magistral’s products are expected to increase rapidly. Neft Magistral continues to implement strategies to expand production capacity and trade activities to gain more market share. With the wider and deeper economic integrations between Russia and other countries in the ASEAN region, in Asia, and around the world, Neft Magistral will look for opportunities to implement necessary strategies to penetrate international markets.

TRADING & SALES ACTIVITIES

In trading, currently Neft Magistral sells products directly to trading companies (wholesalers) in the North, Central, and South Russia. The petroleum products are distributed via twelve trading firms, many of them are the largest in Russia, such as, Petrolimex, PVOil, SaiGon and Petro. These distribution channels are helping Neft Magistral to deliver products to all customers quickly and efficiently. Neft Magistral plans to develop its own retail chain, aiming to control a significant market share and gain more benefits.

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