ROSNEFT NET INCOME UP BY 6.4 TIMES
ROSNEFT published Financial results for 2Q 2016
- Net income growth by x6.4 times to RUB 89 bln in 2Q 2016
- Increase in EBITDA by 27.5%, to RUB 348 bln; EBITDA margin above 27%
- Effective control of operating and SG&A costs
- Industry leadership in free cash flow generation
- Decrease in net debt by 41.4%, to USD 23.4 bln from 1H 2015
Consolidated IFRS financial results for 2Q 2016:
|
Q2 2016 |
Q1 2016 |
Change, % |
H1 2016 |
H1 2015 |
Change, % |
---|---|---|---|---|---|---|
Financial results |
RUB bln (except %) |
|||||
Total revenue and equity share in profits of associates and joint ventures |
1,232 |
1,048 |
17.6% |
2,280 |
2,658 |
(14,2)% |
EBITDA |
348 |
273 |
27.5% |
621 |
670 |
(7.3)% |
EBITDA margin |
27.6% |
25.2% |
2.4 pp. |
26.5% |
24.9% |
1.6 pp. |
Net income attributable to Rosneft shareholders |
89 |
14 |
x6.4 times |
103 |
190 |
(45.8)% |
Net income margin |
7.1% |
1.3% |
5.8 pp |
4.4% |
7.1% |
(2.7) pp |
Free cash flow1 |
61 |
80 |
(23.8)% |
141 |
340 |
(58.5)% |
Upstream operating expenses/boe |
164 |
155 |
5.8% |
160 |
157 |
1.9% |
|
USD bln2 (except %) |
|||||
Total revenue and income of associates and joint ventures |
19.2 |
14.5 |
32.4% |
33.7 |
47.2 |
(28.6)% |
EBITDA |
5.3 |
3.7 |
43.2% |
9.0 |
11.8 |
(23.7)% |
Net income attributable to Rosneft shareholders |
1.4 |
0.2 |
x7 times |
1.6 |
3.5 |
(54.3)% |
Gross debt |
45.7 |
47.5 |
(3.8)% |
45.7 |
54.3 |
(15.8)% |
Net debt |
23.4 |
23.9 |
(2.1)% |
23.4 |
39.9 |
(41.4)% |
Free cash flow |
1.3 |
1.5 |
(13.3)% |
2.8 |
6.7 |
(58.2)% |
For reference |
|
|
|
|
|
|
Average Urals price, USD per bbl |
43.8 |
32.2 |
36.2% |
38.0 |
57.3 |
(33.7)% |
Average Urals price, th. RUB per bbl |
2.89 |
2.40 |
20.2% |
2.67 |
3.29 |
(18.9)% |
1Excluding the effect of interest expense and effect from prepayments
2Calculated using average monthly Central Bank of Russia exchange rates for the reporting period. Gross debt and net debt are estimated using the closing exchange rate of Central Bank of Russia as of June, 30, 2016, March, 31, 2016 and June, 30, 2015, respectively.
Commenting the results for 2Q 2016, Rosneft CEO Igor Sechin said:
"With remaining volatility, the commodity markets showed some improvements in 2Q 2016, and average ruble crude oil price went up by 20% against 1Q 2016. The main strategic priorities in such difficult conditions remain control over operating and SG&A costs and raising investment program quality. I am glad to note that the dynamic of operating costs turned to be significantly lower than that of the consumer price index. Higher efficiency and some improvement in the market environment allowed substantially increasing net income in 2Q 2016, to RUB 89 bln (x6.4 times vs. 1Q 2016) and generating a consistently high cash flow for the shareholders. Rosneft keeps improving its leading position among global and Russian peers even in difficult market conditions – this highlights once again the quality of business and the Company's high efficiency.
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Earlier:
ROSNEFT & PDVSA STRATEGIC PARTNERSHIP