Rosneft Oil Company
IFRS Results
Q3 2020
November 13, 2020
Important Notice
Information herein has been prepared by the Company. The presented conclusions are based on the general information collected as of the date hereof and can be amended without any additional notice. The Company relies on the information obtained from the sources which it deems credible; however, it does not guarantee its accuracy or completeness.
These materials contain statements about future events and explanations representing a forecast of such events. Any assertion in these materials that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors, which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. We assume no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting such statements.
This presentation does not constitute an offer to sell, or any solicitation of any offer to subscribe for or purchase any securities. It is understood that nothing in this report / presentation provides grounds for any contract or commitment whatsoever. The information herein should not for any purpose be deemed complete, accurate or impartial. The information herein in subject to verification, final formatting and modification. The contents hereof has not been verified by the Company. Accordingly, we did not and do not give on behalf of the Company, its shareholders, directors, officers or employees or any other person, any representations or warranties, either explicitly expressed or implied, as to the accuracy, completeness or objectivity of information or opinions contained in it. None of the directors of the Company, its shareholders, officers or employees or any other persons accepts any liability for any loss of any kind that may arise from any use of this presentation or its contents or otherwise arising in connection therewith.
2
Facing the COVID-19 Challenge:
Priority to People's Health and Well-being
- Transition to remote work
- Regular testing (>560,000 tests)
- Psychological aid hotline
- >29.3 mln units of personal protective equipment
- Strict compliance with sanitary and epidemiological requirements
- >5.8 mln liters of disinfectant for offices and workplaces treatment
Care for operations
- Priority Action Plan approved by the Board of Directors to ensure operational stability
- Emergency monitoring and response centers in 284 subsidiaries
- Epidemiological alertness regime in 117 rotation camps and 230 shift camps
- Rotation period is increased to 90 days
- 263 observation rooms for 21,400 patients and 398 isolation rooms for 13,400 patients
Care for customers
- Production of two sanitizer components, ethyl alcohol (ethanol) and acetone
- 32,300 tons of acetone and
2,700 tons of ethyl alcohol sold on the domestic market - Contactless fuel payment service
- Personal protective equipment and financial support for medical institutions
3
The Company's Progress in Sustainable Development is Reflected in Designated International ESG Ratings
One of the global leaders, | The best Russian oil and gas | Rosneft was included in | ||
ahead of most O&G | company in the Global CDP | the international | ||
companies | climate change and water security | FTSE4Good Index | ||
Rating improved to 70.1 | rating | The highest score in the | ||
The Climate change rating improved to B. | Management category | |||
Rosneft was assigned the B- Water | ||||
security rating for the first time | ||||
Among top 10 industry | The company integrates climate | The Company was | ||
leaders | issues into the decision-making | included in the top 100 | ||
Rating improved to А | process of its operating activity | of 843 emerging market | ||
The rating in the Management quality | companies, representing 32 | |||
category improved to 3 points out of 4 | sectors of the economy | |||
from 31 countries | ||||
4
COVID-19 Impact
on Crude Oil and Petroleum Products Demand
Oil demand in Europe, mmbd | Main petroleum products demand in Europe, mmt | ||||||||||||||||||||||||||||||
2019 | |||||||||||||||||||||||||||||||
15 | 30 | 22 | 100 | 14 | |||||||||||||||||||||||||||
Gasoline | Jet fuel | Diesel | Fuel oil | ||||||||||||||||||||||||||||
-8% | 2019 | ||||||||||||||||||||||||||||||
+2% | +0.4% | ||||||||||||||||||||||||||||||
-8% | +2% | ||||||||||||||||||||||||||||||
-2% | -1% | +7% | |||||||||||||||||||||||||||||
10 | 15 | 11 | 50 | 7 | |||||||||||||||||||||||||||
5 | 0 | 0 | 0 | 0 | |||||||||||||||||||
Jan-20Feb-20Mar-20Apr-20May-20Jun-20Jul-20Aug-20Sep-20Oct-20 | |||||||||||||||||||||||
Q1 Q2 | Q3 | Q1 | Q2 | Q3 | Q1 | Q2 | Q3 | Q1 | Q2 Q3 | ||||||||||||||
Oil demand in Asia-Pacific region, mmbd | Domestic demand for main petroleum products, mmt | |||||||||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||||
35 | 10 | Gasoline 4 | 12 | 6 | ||||||||||||||||||||||||||||||
Jet fuel | Diesel | Fuel oil | ||||||||||||||||||||||||||||||||
30 | 2019 | |||||||||||||||||||||||||||||||||
-13% | -0.1% | |||||||||||||||||||||||||||||||||
+2% | -4% | -0.2% | +3% -1% | -0.2% | +3% | |||||||||||||||||||||||||||||
5 | 2 | 6 | 3 | |||||||||||||||||||||||||||||||
25 |
20 | 0 | 0 | 0 | 0 | ||||||||||||||||
Jan-20Feb-20Mar-20Apr-20May-20Jun-20Jul-20Aug-20Sep-20Oct-20 | Q1 | Q2 | Q3 | Q1 Q2 | Q3 | Q1 | Q2 Q3 | Q1 Q2 | Q3 | |||||||||||
Source: Wood Mackenzie, Petromarket Research Group | 5 |
Record Low Oil Prices
Followed by Partial Recovery
Oil prices and differentials1, $/bbl | Gross Upstream margin2, '000 Rub/t | ||
80 | Brent | 16 | Monthly average |
Urals | FY average | ||
ESPO | |||
60 | 12 |
40 | 8 |
20 | Urals-Brent | 10 | 4 | |||
ESPO-Brent | 5 | |||||
0 | ||||||
-5 | ||||||
0 | -10 | 0 | ||||
Jan-19Feb-19Mar-19Apr-19May-19Jun-19Jul-19Aug-19Sep-19Oct-19Nov-19Dec-19Jan-20Feb-20Mar-20Apr-20May-20Jun-20Jul-20Aug-20Sep-20 | Jan-19Feb-19Mar-19Apr-19May-19Jun-19Jul-19Aug-19Sep-19Oct-19Nov-19Dec-19Jan-20Feb-20Mar-20Apr-20May-20Jun-20Jul-20Aug-20Sep-20 | |||||
Note: (1) Monthly averages, (2) Calculated as Urals price less export customs duty and effective MET rate | 6 |
Key Events
1 | New tax initiatives for the Russian oil and gas |
sector were approved1 |
2 | Tightened cost control. |
Unit lifting costs reduced to $2.8 per bbl | |
3 | Despite continued pressure from external factors, |
Q3 EBITDA exceeded the pre-crisis Q1 level | |
4 | The Company generated positive free cash flow |
and continued to reduce debt | |
Over 80 mln shares and GDRs for a total of
5 c. $370 mln have been purchased under the share buyback program2
Note: (1) Come into force starting January 1, 2021, (2) Since the start of the Program as of November 6, 2020 | 7 |
Impact of New Tax Initiatives
CONTENT | SUBJECT | ||
Cancellation of tax | Cancellation of MET relief | ||
benefits for depleted | Option to switch to EPT provided (Group 3) | с. 57 mmt of crude produced at depleted fields in 2019 | |
fields with an option to | subject to reduced MET rate | ||
Provision of a 20% MET relief starting 2024 | |||
switch to EPT regime | |||
Cancellation of tax | Russkoye, | ||
benefits for high-vicious | |||
Zero/reduced MET and export duty rates were replaced | |||
oil and export duty | by the standard ones, an option to switch to EPT | Vostochno-Messoyakhskoye | |
holidays for certain | provided | Srednebotuobinskoye fields | |
projects | |||
Introduction of an increased MET coefficient for the | Prirazlomnoye field | ||
Revision of the EPT | fields included in Group 2 | ||
>27 mmt of crude produced in 2019 at fields | |||
parameters | Tax deductible historical costs, operating and capital | ||
transferred to the EPT regime | |||
expenses were limited | |||
Reduction of the cut-off price for the MET deduction to | Vankor cluster - funds for the construction of the Vostok | ||
$25/bbl Urals, zero MET period for greenfields | |||
MET deduction for | Oil project infrastructure | ||
extended to 16 years | |||
certain projects | |||
Provision of a MET deduction for the implementation of | Priobskoye field - up to Rub 460 bn (until 2032) to | ||
finance the field development | |||
an investment agreement | |||
mixed impact | negative impact | positive impact |
8
Operating Results
9
Key Operating Indicators
Liquids production,
kbd
4,674 | |
4,0363,908 | 4,193 |
Q2'20 / Q3'20 | 9M'19 / 9M'20 |
Gas production, mmcmd
Refining throughput,
mmt
166.6162.6 | 182.2170.6 | |
Q2'20 / Q3'20 | 9M'19 / 9M'20 | |
7.31 | 8.22 | |
74.59 69.96
2.51 2.94
21.49 22.52
Q2'20 | Q3'20 | 9M'19 | 9M'20 |
in Russia | abroad | 10 | |||
Navigating OPEC+ Environment
Crude oil production in Russia (2020), mmbd
6 | 11 |
Stage 2
Stage 1
5 | 9 |
4 | 7 |
3 | 5 |
2 | 3 | |
jan feb mar apr may jun jul aug sep oct nov dec
- The Company has started oil production cuts under the new OPEC+ agreement since May 2020
- Production cuts on a pro rata basis
- Stage 1 extended till the end of July 2020
- Easing of restrictions starting August until December 2020 under Stage 2
- Rapid production recovery in Stage 2 - a 6% increase already in early August
- Commitment to successful execution of the chosen approach to cut production:
- Asset selection (to cut production) is based on economic efficiency
- Continued development of new fields
- Efficient long-cycle wellworks to be continued according to schedule
- Efficient well stock management
Rosneft (LHS) | Russia total (RHS) | |
11
Development of Key Oil Projects
Severo-Komsomolskoye field | Lodochnoye field | |
3Р (PRMS) reserves - 269 mmtoe1
The implementation of the 1st stage of full-scale field development (PK-1 horizon) has begun
Development drilling is in progress, 51 wells have been drilled as of September 30, 2020
Engineering preparation of the main facilities sites for the full-scale development of the field is underway
3Р (PRMS) reserves - 85 mmtoe
Pilot development programs are being implemented with connection to the facilities of the Vankor field
Development drilling is in progress, 41 well have been drilled as of September 30, 2020
Construction and installation work is underway at infrastructure facilities and oil and gas processing facilities
YaNAD
KhMAD
Erginskiy LA
3Р (PRMS) reserves - 89 mmtoe
Launch - Q3 2020, production plateau - ~4.5 mmt (2024)
Development drilling is in progress at 10 pads, 199 wells have been drilled as of September 30, 2020
A 79 km pressure pipeline welding is completed, the pipeline was put into operation, shipping of commercial oil to the Transneft system began
Construction of infrastructure facilities, pads, infield pipelines and electric power transmission lines is underway
Irkutsk
Region
Severo-Danilovskoye
3Р (PRMS) reserves - 101 mmtoe2
Launch - Q4 2020, production plateau - ~2 mmt2 (2024)
95 well to be drilled, 13 wells have been drilled as of September 30, 2020. The majority of wells will be horizontal
A 4 MW mobile power center was put into operation. The welding of the oil pipeline to the Verkhnechonskoye field is completed, preparatory work for hydraulic tests is underway
Construction of pads, infrastructure facilities and motor roads is underway
Note: (1) Reserves volume of the entire field; (2) Reserves volume and production plateau of the entire field | 12 |
Gas Business
Gas production in Russia, bcm | |
(OPEC+ impact is limited by the amount of associated gas) | |
-8.1% | |
-5.2% | Decrease of |
production in Russia | |
Decrease of the | |
46.0 | Company's production |
43.6 | |
9M 2019 | 9M 2020 |
Gas sales volumes and average price
4.18 | 4.16 | |
Average price | ||
('000 Rub/mcm) |
45.72 | 41.15 | Volume (bcm), |
3.65 | including.: | |
3.15 | ||
Outside Russia | ||
9M 2019 | 9M 2020 |
Gas sales revenues, Rub bn
191.3 | 171.0 |
9M 2019 | 9M 2020 |
- The Company's 9M 2020 gas production declined by
5.2% (YoY) compared to 8.1% total reduction in Russia1 - The main growth driver is the Rospan project, which provides the largest incremental production increase for both gas and liquids
- Projects development at Sibneftegaz and Kharampurneftegaz fields is in active phase
- According to the Federal Antimonopoly Service gas prices for industrial consumers and citizens have been increased by 3% starting August 1, 2020
- Decrease of revenues was caused by demand reduction following warm weather conditions as well as external factors that negatively influenced end consumers
Note: (1) Gas extracted less gas flared | 13 |
Refining
Refining margins1, $/tonne
68.3 | 63.3 | |||||
46.7 | 38.7 | |||||
30.4 | ||||||
19.4 | 14.0 | |||||
-24.8 | -20.8 | |||||
-11.7 | ||||||
Q3'19 | Q4'19 | Q1'20 | Q2'20 | Q3'20 | ||
Europe | Russia | |||||
Key product prices less cost of feedstock, Russian refineries1, $/tonne
300 | 30 | |||||||||||
100 | 10 | |||||||||||
-100 | -10 | |||||||||||
-300 | -30 | |||||||||||
Q3'19 | Q4'19 | Q1'20 | Q2'20 | Q3'20 | ||||||||
Diesel | Fuel oil | Gasoline | Refining margin (RHS) | |||||||||
- Negative refining margin in Russia in Q3 2020 was caused by poor market environment:
- Crude oil prices recovery
- Decrease of wholesale prices starting August
- Damper effect that remained in the negative zone. While its figure was better than in Q2 2020 providing positive margin dynamics in Q3
- Negative refining margin dynamics outside Russia in Q3 2020 was caused by crude oil prices recovery and reduction of key petroleum product crack spreads
Product output (mmt) | ||||
29.3 | 27.7 | 28.0 | ||
24.8 | ||||
23.5 | ||||
Q3'19 | Q4'19 | Q1'20 | Q2'20 | Q3'20 |
Diesel | Fuel oil | Gasoline | Other | Outside Russia |
Russia
Note: (1) Including the reverse excise tax on crude and damper for motor fuels. Prices for petroleum products are calculated «at the refinery gates» | 14 |
Focus on Distribution Channels Development
Netbacks of the main crude oil marketing channels, $/tonne
Export, Asia | Export, Europe | Refining in Russia | Domestic market | |||
420
340
260
180
100
Q1'19 | Q2'19 | Q3'19 | Q4'19 | Q1'20 | Q2'20 | Q3'20 |
- In Q3 2020 crude oil supplies to non-CIS countries amounted to
- mmt, including crude oil supplies eastwards that reached
- mmt, i.e. 55.3% of total sales to non-CIS countries
- In Q3 2020 crude oil exports to non-CIS countries amounted to
- mmt while the share of 1+ years term contracts amounted to over 90%
- In Q3 2020 motor fuel sales via the exchange exceeded the required level by 3x times
Crude oil marketing breakdown, mmt
66.3 | 50.6 | 49.2 | |
Export, West | 24% | 22% | 21% |
29% | 26% | ||
Export, Asia | 29% | ||
4% | |||
Export, CIS | 4% | 4% | 3% |
3% | |||
Domestic market | 2% | ||
Refining in Russia | 41% | 42% | 46% |
Q3'19 | Q2'20 | Q3'20 |
15
Financial Results
16
Key Financial Indicators
366Rub bn | Q3 2020 EBITDA |
+18% vs. | |
pre-crisis Q1 | |
352 9M 2020 free cash flow
Rub bn
-5.7 | Reduction of debt and trading | |
$ bn | liabilities YTD | |
17
EBITDA and Net Income Dynamics
EBITDA Q3 2020 vs. Q2 2020, Rub bn
Q2 2020 | 170 | ||
Exchange rate | 26 | ||
Crude oil price | 157 | ||
Share in profits | 14 | ||
of associates and JVs | |||
Export duty lag | (8) | ||
Other taxes | 4 | ||
Number of days | 6 | ||
Damper andMET rates | 30 | ||
Change in volumes | (7) | ||
Effect of provision | (23) | ||
recovery in Q2 2020 | |||
OPEX | (9) | ||
General costs | 7 | ||
Exploration costs | (1) | ||
Q3 2020 | |||
366 | |||
Net Income Q3 2020 vs. Q2 2020, Rub bn
Net income | |||||
43 | |||||
attr. to shareholders | |||||
Q2 2020 | |||||
2 | |||||
Minorities | |||||
Q2 2020 | 45 | ||||
EBITDA | 196 | ||||
DDA | |||||
Financial | |||||
expenses (net) | |||||
Other costs | |||||
Pandemic costs | |||||
Income tax | |||||
FX gains/losses | (282) | ||||
Q3 2020 | (50) | ||||
Minorities | 14 | ||||
Net income | |||||
(64) | |||||
attr. to shareholders | |||||
Q3 2020 | |||||
5
(29)
(5)
(1)
21
Costs Dynamics
Lifting costs, Rub/boe
Quarter | LTM average | % YoY | |
200 | ||||
201 | 191 | 208 | 205 | |
196 | ||||
4.1% | 2.5% | 2.0% | ||
-4.4% | -2.1% | |||
Q3'19 | Q4'19 | Q1'20 | Q2'20 | Q3'20 |
General and administrative costs1, Rub/boe
Quarter | LTM average | % YoY | |
90 | 82 | 90 | ||
73 | 74 | |||
64 | 15.6% | |||
2.3% | ||||
-8.2% | -3.9% | |||
-21.0% | ||||
Q3'19 | Q4'19 | Q1'20 | Q2'20 | Q3'20 |
Refining costs in Russia, Rub/bbl
Quarter | LTM average | % YoY | |
209 | 226 | |||
220 | ||||
207 | ||||
184 | 181 | |||
22.8% | ||||
2.2% | 2.3% | -1.1% | 0.0% | |
Q3'19 | Q4'19 | Q1'20 | Q2'20 | Q3'20 |
Producer Price Index (annual basis), %
-0.6% | -5.6% | -1.7% | -11.6% | -1.4% |
Q3'19 | Q4'19 | Q1'20 | Q2'20 | Q3'20 |
Note: (1) Excluding provisions | 19 |
Strong Free Cash Flow
Free cash flow calculation, Rub bn | Crude oil price and free cash flow dynamics, LTM | |
Net cash provided
by operating activities
Reimbursement of
prepayments received
(historical FX rate)
625
217 | 4.25 | 4.11 |
Reimbursement of
other financial obligations
116
3.85
FX rate change effect
Interest on prepayments
Net change in operations
of subsidiary banks
Prepayments for
future supplies
Reimbursement of
prepayments granted
Adj. operating cash flow
CAPEX
Free cash flow
111 | 3.33 | 3.14 | ||||
29 | ||||||
(180) | ||||||
12 | 920 | 941 | 931 | 798 | ||
634 | ||||||
(9) | ||||||
921 | ||||||
(569) | Q3'19 | Q4'19 | Q1'20 | Q2'20 | Q3'20 | |
352 | Free cash flow, Rub bn | Urals price, '000 Rub/bbl | |||
20
Debt Optimization
Liquidity position as of September 30, 2020, $ bn | Financial debt breakdown as of September 30, 2020 | |
19.3 | ||||
Available credit lines | ||||
10.5 | Liquid financial assets | 31% | Rubles | |
Foreign currencies | ||||
48% | 52% | Floating rates | ||
Fixed rates | ||||
69% | ||||
Short-term financial | Available liquid | |||
assets | assets |
Gross debt and trading liabilities dynamics, $ bn | CBR key rate and LIBOR | |
YTD | ||||||
7.75% | 7.50% | |||||
2.81% | 6.25% | |||||
2.34% | 4.50% | 4.25% | ||||
1.91% | ||||||
0.30% | 0.23% | |||||
-5.7 | ||||||
31.12.2018 | 30.06.2019 | 31.12.2019 | 30.06.2020 | 30.09.2020 | ||
Gross debt | Prepayments | Total | CBR key rate (LHS) | 3M USD LIBOR (RHS) |
21
CAPEX
CAPEX evolution, Rub trln
0.85 | |||
0.63 | 0.57 | ||
9M 2019 | 2019 | 9M 2020 | 2020 |
Plan |
Revision of CAPEX, Rub trln
Following negative macro environment and production cuts the CAPEX program was optimized by 20%
The program still allows for fast project development recovery and production buildup whenever the market conditions change / production restrictions will be lifted
~1
Optimization in
Russia c. 0.2
2020 | Upstream Downstream | Other | 2020 |
Plan | Revised |
Key areas for optimization
- Postponing/eliminating less economically viable projects
- Rising hurdle rates for certain groups of projects
- Maintaining active pre-investment work on high- margin perspective projects
Projects in Russia | International projects | 22 | ||
Appendix
23
Key Operational Highlights
Indicator | Q3 2020 | Q2 2020 | % | 9M 2020 | 9M 2019 | % |
Hydrocarbon production, incl.
kboed
Liquids
kbpd
Gas
kboed
Oil refining
mmt
Product output in Russia
mmt
4,898 | 5,051 | (3.0)% | 5,232 | 5,783 | (9.5)% |
3,908 | 4,036 | (3.2)% | 4,193 | 4,674 | (10.3)% |
990 | 1,015 | (2.5)% | 1,039 | 1,109 | (6.3)% |
25.46 | 24.00 | 6.1% | 78.18 | 81.90 | (4.5)% |
21.76 | 20.93 | 4.0% | 67.76 | 72.06 | (6.0)% |
24
Key Financial Highlights
Indicator | Q3 2020 | Q2 2020 | % | 9M 2020 | 9M 2019 | % |
EBITDA, Rub bn | 366 | 170 | >100% | 845 | 1 617 | (47.7)% |
Net Income, Rub bn
attributable to Rosneft shareholders
Adjusted net income1, Rub bn
Adjusted operating cashflow2, Rub bn CAPEX, Rub bn
Free Cash Flow, Rub bn
EBITDA, $ bn
Net Income, $ bn
attributable to Rosneft shareholders
Adjusted net income1, $ bn
attributable to Rosneft shareholders
Adjusted operating cashflow2, $ bn
CAPEX, $ bn
Free Cash Flow, $ bn
Urals price, '000 Rub/bbl
(64) | 43 | >100% | (177) | 550 | >100% |
108 | (56) | - | 86 | 733 | (88.3)% |
348 | 169 | >100% | 921 | 1 293 | (28.8)% |
202 | 182 | 11.0% | 569 | 634 | (10.3)% |
146 | (13) | - | 352 | 659 | (46.6)% |
5.0 | 2.5 | 100.0% | 12.4 | 24.8 | (50.0)% |
(0.8) | 0.7 | - | (2.1) | 8.5 | - |
1.5 | (0.8) | - | 1.2 | 11.3 | (89.4)% |
4.7 | 2.4 | 95.8% | 13.4 | 19.7 | (32.0)% |
2.7 | 2.5 | 8.0% | 8.0 | 9.7 | (17.5)% |
2.0 | (0.1) | - | 5.4 | 10.0 | (46.0)% |
3.17 | 2.26 | 40.1% | 2.89 | 4.17 | (30.8)% |
Note: (1) Adjusted for FX gains/losses and other one-off effects; (2) Adjusted for prepayments under long-term crude oil supply contracts (including accrued interest), net change in | 25 |
operations of subsidiary banks and operations with trading securities (Rub equivalent) |
EBITDA and Net Income Dynamics
EBITDA 9M 2020 vs. 9M 2019, Rub bn
Net Income 9M 2020 vs. 9M 2019, Rub bn
9M 2019
Exchange rate
Tax maneuver
completion
EPT effect
Crude oil price
Share in profits of
associates and JVs
Export duty lag
Transport tariffs
indexation
Damper and MET rates
Other taxes
Change in volumes
Recovery of provision accumulated in 2019
Sales mix and margin (trading)
OPEX and general costs
Exploration costs
Other
9M 2020 | 845 |
1,617
103
(36)
32
(456)
(40)
(58)
(13)
(200)
(10)
(169)
58
32
(6)
(4)
(5)
Net income
attr. to shareholders
9M 2019
Minorities | |||||
9M 2019 | |||||
EBITDA | |||||
DDA | 9 | ||||
Financial expeses (net) | (26) | ||||
Other income | (3) | ||||
Other costs | 42 | ||||
Pandemic costs | (5) | ||||
Income tax | 161 | ||||
FX gains/losses | (180) | ||||
9M 2020 | (148) | ||||
Minorities | 29 | ||||
Net income | |||||
(177) | |||||
attr. to shareholders | |||||
9M 2020 | |||||
550
76
626
(772)
26
Calculation of Adjusted OCF
Profit and Loss Statement
№ | Indicator | 9M 2020, |
$ bn | ||
1 | Revenue, incl. | 62.6 |
Reimbursement of prepayments and other | 6.3 | |
financial obligations received | ||
2 | Costs and expenses, incl. | (57.4) |
Reimbursement of prepayments granted | (0.1) | |
3 | Operating profit (1+2) | 5.2 |
4 | Expenses before income tax | (7.2) |
5 | Income before income tax (3+4) | (2.0) |
6 | Income tax | 0.3 |
7 | Net income (5+6) | (1.7) |
Cash Flow Statement
9M 2020, | Indicator | № |
$ bn | ||
(1.7) | Net income | 1 |
7.0 | Adjustments to reconcile net income to cash | 2 |
flow from operations, incl. | ||
Reimbursement of prepayments received | ||
(4.6) | under crude oil and petroleum products supply | |
contracts |
(1.7) | Reimbursement of other financial obligations |
received | |
Reimbursement of prepayments granted |
0.1 under crude oil and petroleum products supply contracts
4.3 | Changes in operating assets and liabilities, incl. | 3 |
(0.4) | Interest on prepayments under long- term | |
crude oil supply contracts | ||
(0.3) | Income tax payments, interest and dividends | 4 |
received | ||
9.3 | Net cash from operating activities (1+2+3+4) | 5 |
(2.7) | Net change in operations of subsidiary banks | 6 |
0.2 | Prepayments for future supplies | 7 |
6.6 | Effect from prepayments | 8 |
13.4 | Adjusted operational cash flow (5+6+7+8) | 9 |
27
Finance Expenses, Rub bn
Indicator | Q3 2020 | Q2 2020 | % | 9M 2020 | 9M 2019 | % |
- Interest accrued1
- Interest paid and offset2
- Change in interest payable (1-2)
- Interest capitalized3
- Net loss from operations with financial derivatives4
- Increase in provision due to the unwinding of a discount
- Interest on prepayments under long-term oil and petroleum products supply contracts
- Change in fair value of financial assets
- Increase in loss allowance for expected credit losses on debt financial assets
10. Other finance expenses
Total finance expenses (1-4+5+6+7+8+9+10)
66 | 63 | 4.8% | 194 | 215 | (9.8)% |
64 | 60 | 6.7% | 190 | 211 | (10.0)% |
2 | 3 | (33.3)% | 4 | 4 | - |
32 | 32 | - | 100 | 121 | (17.4)% |
3 | (4) | - | 6 | - | 100.0% |
6 | 6 | - | 18 | 14 | 28.6% |
8 | 9 | (11.1)% | 29 | 56 | (48.2)% |
(1) | (20) | (95.0)% | 1 | - | 100.0% |
4 | - | 100.0% | 5 | 3 | 66.7% |
1 | 3 | (66.7)% | 7 | 9 | (22.2)% |
55 | 25 | 120.0% | 160 | 176 | (9.1)% |
Note: (1) Interest accrued on credits and loans and other financial obligations, (2) Interest is paid according to the schedule, (3) Interests paid shall be capitalized in accordance with IAS | |
23 standard Borrowing Costs. Capitalization rate is calculated by dividing the interest costs for borrowings related to capital expenditures by the average balance of loans. Capitalized | |
interest shall be calculated by multiplying average balance of construction in progress by capitalization rate, (4) Net effect on operations with financial derivatives was related to FX | 28 |
component fluctuations of cross-currency interest rate swaps. |
Variance Analysis
9M 2020 EBITDA and net income sensitivity to +/- 10% change in Urals price, Rub bn
EBITDA
(113)113
Net income
- 90
-10% | 40.8 | +10% |
$/bbl | ||
9M 2020 EBITDA and net income sensitivity to +/- 10% change in Rub/$ exchange rate, Rub bn
EBITDA
(149)149
Net income
(119)119
-10% | 70.8 | +10% |
Rub/$ | ||
Source: Company data | 29 |
Questions & Answers
30
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OAO Neftyanaya Companiya ROSNEFT published this content on 13 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 November 2020 13:48:05 UTC