Saudi Aramco and Evropeyskaya Elektrotekhnica discussed areas of cooperation

Saudi Aramco and Evropeyskaya Elektrotekhnica discussed areas of cooperation

October 4, 2019. Moscow — PJSC Evropeyskaya Elektrotekhnica (hereinafter — the Company or the Group), one of the leaders in the Russian engineering market, conducted negotiations with representatives of Saudi Aramco (Saudi Arabia), which was represented by its subsidiary Aramco Overseas Company. The talks were aimed at developing directions for further cooperation.

The negotiations took place on the sidelines of the Prospects for Producers of Oil&Gas Equipment in Saudi Arabia event organized in Moscow by the Ministry of Industry and Trade of the Russian Federation. The purpose of the event was the stimulation of the export of Russian high-tech products and services.

Ilya Kalenkov, General Director of PJSC Evropeyskaya Elektrotekhnica, took part in the meeting. He commented on the event:

“Saudi Arabia's economy is 18th in the world in terms of GDP, and it demonstrates the highest growth rates among the G20 countries. Saudi leaders are actively moving forward with regard to economic reform. They are highly interested in the accelerated development of high-tech sectors of the manufacturing and production industries, which are identified as being among key priorities for development. During the event, Russian entrepreneurs in the field of Oil&Gas engineering and oilfield services got an overview of preferential measures (fiscal, customs, infrastructure, and regulatory) that are designed to attract investors to Saudi innovation centers.

Saudi Aramco is the world's largest Oil&Gas company, and is a leader with regards to both hydrocarbon extraction and to its financial results. Saudi Aramco's ten-year strategic development program provides for investments in the development of the entire Oil&Gas complex and related infrastructure in the amount of USD 414 billion. 186 investment projects are expected to be implemented from just 2019 to 2021. 

Of course, for us, it is important to understand which new partners Saudi Aramco is interested in involving in the development of its global supply chains. We wish to become more aware of the registration and tender procedures regarding work with the company.

Taking into account the significant and increasing volumes of fuel oil consumption in Saudi Arabia, our offerings include innovative units for fuel oil preparation for power and hot-water boilers and furnaces for industrial purposes. This equipment not only allows operators to save 10–15% of fuel volume, but also allows for the significant improvement of environmental conditions at industrial facilities that operate on fuel oil, thanks to the more complete combustion of fuel that is prepared using our equipment.

Our Company is highly interested in the opportunities that the Saudi Arabian market offers in the fields of Engineering Systems and Process Systems. We have a wide range of offerings in each area.

We are grateful to the Ministry of Industry and Trade for organizing this platform for direct talks with such a major potential customer. This is a very effective format for business communications."

FOR REFERENCE:

Saudi Aramco

National oil company of Saudi Arabia. It is the world's largest oil company by both oil production (10.3 million barrels per day for 2018) and size of its oil reserves (336.2 billion barrels). It is headquartered in Dhahran and was founded in 1933.

It performs oil refining and is developing its petrochemical segment.

The company has several branches, joint venture companies and subsidiaries in China, Japan, the Philippines, the Republic of Korea, Singapore, the United Arab Emirates, the USA, and the UK.

It has an oil tanker fleet and employs over 70 thousand people.

Financial indicators (2018): revenue USD 355.9 billion, net profit USD 111.0 billion.

Source: www.saudiaramco.com

About Evropeyskaya Elektrotekhnica Group of Companies

• Evropeyskaya Elektrotekhnica Group of Companies (MOEX: EELT) offers comprehensive solutions in the field of engineering and technological systems for industrial, construction and infrastructural purposes: low and medium voltage distribution equipment, low current systems, lighting systems, industrial electric heating systems and equipment for the Oil&Gas and petrochemical industries.

• As a Russian joint-stock company with high corporate governance standards and financial sustainability, the Company's Mission is to improve people's quality of life with its entrepreneurial vigour and engineering competencies.

• The Company was founded in 2004 and unites a distribution center, engineering departments, an electrical laboratory and specialized production facilities. The company is one of the largest electrical equipment distributors in the Russian Federation and an industrial partner of leading companies on the international engineering market.

• The Company's logistics capabilities include delivery (including non-standard and oversize load) to customers throughout Russia, including hard-to-reach Northern areas, as well as to Central Asia, North Africa and the Middle East.

• The Company has its own production of the following equipment:

• Complete transformer substations;

• Medium voltage units;

• Low voltage panels of up to 6,300A (including metro solutions);

• Electric lighting systems;

• Industrial electric heating systems;

• Cabling and wiring products.

• Areas of application of the Company's competences:

• Oil&Gas industry;

• Electric power sector;

• Peaceful atom,

• Steel and mining industry;

• Engineering;

• Transport infrastructure, water supply and sanitation.

• Evropeyskaya Elektrotekhnica's customers include major Russian companies: Rosneft, Gazprom, NOVATEK, LUKOIL, Sibur and Nizhnekamskneftekhim. Supplies were successfully implemented for the following projects: Power of Siberia, Yamal LNG, Smolensk NPP, Data Center of Sberbank of Russia, the Domodedovo, Sheremetyevo, and Pulkovo Airports, etc.

• New areas of Company activity starting from 2018 include development and production of the following:

• Modular equipment for the Oil&Gas and petrochemical industries (Company subsidiary ROG-Engineering, Ufa, Republic of Bashkortostan, Russian Federation);

• Industrial specialized solutions for metro substations (currently being consolidated into the Group's structure: Metrotonnel, Moscow, Russian Federation);

• Industrial electric heating systems.

• Key financial indicators of PJSC Evropeyskaya Elektrotekhnica (IFRS):

The personnel headcount is around 350 people. Since September 2017, common shares of PJSC Evropeyskaya Elektrotekhnica are traded on the Moscow Exchange with trading code EELT.

In June 2018, the company was named Import Substitution Leader at the Leader of Competitive Sales annual national awards, in which 450 domestic suppliers from various industries took part. 

Contacts:

PJSC Evropeyskaya Elektrotekhnica

Tel.: +7 (800) 600-71-18

Mailing address: 1 Lyotchika Babushkina Street, Building 3, Moscow, 129344

For more information, please contact:

Stanislav Martyushev

Director for Corporate Communications and Investor Relations

PJSC Evropeyskaya Elektrotekhnica

Tel. +7 (495) 660-71-18 ext. 164

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