RUS | ENG | All
Enter the email or login, that you used for registration.
If you do not remember your password, simply leave this field blank and you will receive a new, along with a link to activate.

Not registered yet?
Welcome!

2019-05-15 11:10:00

ROSNEFT'S NET INCOME +61.7%

ЧИСТАЯ ПРИБЫЛЬ РОСНЕФТИ +61,7%

ROSNEFTFinancial results for Q1 2019

 

  • EBITDA growth of more than 1.4 times YoY to RUB 548 bln with the margin improvement to 26%
  • Strong control over the costs: operating expenses fell by 10% QoQ
  • Free cash flow growth of more than 1.4 times to RUB 197 bln compared to the same period of 2018
  • Strategic focus on the debt reduction:
    • Net debt fell by more than RUB 110 bln*
    • Trading liabilities reduced by USD 1.9 bln
    • Company’s target: drop of net debt and trade payables of USD 2 bln by the end of 2Q 2019
  • Net income growth of 61.7% YoY to RUB 131 bln

 

Consolidated IFRS financial results for 1Q 2019:

 

1Q

2019

4Q

2018

Change,

%

1Q

2019

1Q

2018

Change,

%

Financial results

RUB bln (except %)

Revenues and equity share in profits of associates and joint ventures

2,077

2,165

(4.1)%

2,077

1,722

20.6%

EBITDA

548

488

12.3%

548

385

42.3%

EBITDA margin

26.0%

22.2%

3.8 pp

26.0%

21.9%

4.1 pp

Net income attributable to Rosneft shareholders

131

109

20.2%

131

81

61.7%

Net income margin

6.3%

5.0%

1.3 pp

6.3%

4.7%

1.6 pp

Capital expenditures

214

257

(16.7)%

214

223

(4.0)%

Free cash flow (RUB equivalent)1

197

261

(24.5)%

197

142

38.7%

Upstream operating expenses RUB/boe

195

205

(4.9)%

195

185

5.4%

 

USD bln2 (except %)

Revenues and equity share in profits of associates and joint ventures

31.9

33.1

(3.6)%

31.9

30.9

3.2%

EBITDA

8.3

7.4

12.2%

8.3

6.8

22.1%

Net income attributable to   Rosneft shareholders

1.9

1.6

18.8%

1.9

1.5

26.7%

Capital   expenditures

3.2

3.9

(17.9)%

3.2

3.9

(17.9)%

Free   cash flow

3.0

4.0

(25.0)%

3.0

2.5

20.0%

Upstream   operating expenses USD/boe

3.0

3.1

(3.2)%

3.0

3.3

(9.1)%

For   reference

 

 

 

 

 

 

Average   Urals price.  USD per bbl

63.2

67.3

(6.1)%

63.2

65.2

(3.1)%

Average   Urals price. th. RUB per bbl

4.18

4.48

(6.6)%

4.18

4.86

12.7%

 

1The calculation includes interest expense on the prepayments on the long-term oil and petroleum products supply agreements.
2Calculated using average monthly Central Bank of Russia exchange rates for the reporting period.
*Excluding the one-time increase in non-current assets and financial liabilities as a result of recognition on the balance sheet of operating leases in the amount of RUB 103 billion in accordance with IAS 16 "Leases».

Commenting on Q1 2019 results Rosneft’s Chairman of the Management Board and Chief Executive Officer Igor Sechin said:

Despite the volatility and quarterly decrease in oil prices, the decline in oil production under the OPEC+ Agreement and the Agreement on stabilization of prices for petroleum products on the domestic market, in Q1 2019 the Company demonstrated healthy financial performance in terms of both earnings growth and strong free cash flow generation. This was driven by management efforts in terms of efficient control over the costs and effective investment projects selection.

The Company is committed to generating high rates of organic production growth through the launch of greenfields and maintaining production level at brownfields. Eventually this will lead to a generation of strong free cash flow and higher returns to shareholders through the payment of dividends and the reduction of debt burden – targets that the Company has consistently and successfully achieved over the past several years.

A year ago the Board of Directors supported proposals to increase returns for shareholders and improve the investment attractiveness of the Company. Among those proposals was setting a minimum target level for reducing the total debt burden. In 2018 the Company reduced its trade payables and net financial debt by more than USD 14 bln. In the current second quarter we set a goal of reducing these metrics by USD 2 bln.

At its recent meeting the Company’s Board of Directors recommended a dividend payment of 11.33 RUB per share based on the results of 2018. Taking into account the dividend payment for the first half of 2018, total dividend per share for 2018 will amount to 25.91 RUB. If approved by the shareholders, the dividend per share will grow by a factor of nearly 2.5x compared to the previous year and by a factor of more than 4x compared to the dividend payment for 2016. This dynamic clearly demonstrates that the Company works for the shareholders and will strive to achieve the highest results in terms of production growth, investment efficiency and financial stability.”

Financial performance

Revenues and equity share in profits of associates and joint ventures

Q1 2019 revenue amounted to RUB 2,077 bln (USD 31.9 bln). The reduction of sales by 4.1% QoQ was driven by a decrease in crude oil prices (-6.6% in RUB terms and -6.1% in USD terms) and petroleum product prices both on the external market (-5.1% in RUB terms) and the domestic market (-7.5% in RUB terms) with crude oil sales volumes growing by 3.5%.

Q1 2019 revenues increased by 20.6% YoY in RUB terms mainly due to higher volumes of crude oil and petroleum products sales (+7.6%) and crude oil price growth in RUB terms (+12.7%) on the back of the Russian currency depreciation. An additional factor of revenue growth was the increase in equity share in profits of associates and joint ventures.

EBITDA

Q1 2019 EBITDA amounted to RUB 548 bln (USD 8.3 bln), an increase of 12.3% vs Q4 2018. This was mainly driven by a relatively high level of prices against the backdrop of ongoing geopolitical instability and by a positive lag effect of export duty as well as a reduction of operating costs.

Q1 2019 lifting costs amounted to 195 RUB/boe (3.0 USD/boe), decreasing by 4.9% vs Q4 2018. The reduction of operating costs in RUB terms was mainly driven by a seasonal reduction of volumes of technological works as well as reduced maintenance and repairs of pipeline and oilfield services equipment.

Q1 2019 EBITDA growth of more than 40% vs Q1 2018 was mainly driven by an increase in the production volumes against the backdrop of a positive crude oil price dynamics in RUB terms and by effective control over the costs.

Net income attributable to Rosneft shareholders

In Q1 2019 net income attributable to Rosneft shareholders amounted to RUB 131 bln (USD 1.9 bln). The positive dynamics of this indicator is mainly attributable to higher operating profit and an FX gain. However, implementation of non-market methods of regulation of the domestic market for petroleum products as part of the tax maneuver resulted in an impairment loss in the Downstream segment of RUB 80 bln in Q1 2019 with a negative impact on the Company’ net income for the reporting period.

Increase in the net income in Q1 2019 vs Q1 2018 by 61.7% was driven by positive dynamics of the Company’s operating income as well as an FX gain and taking into account the recognition of the asset impairment provision.

Capital expenditures

Q1 2019 capital expenditures amounted to RUB 214 bln (USD 3.0 bln). The reduction of 16.7% vs Q4 2018 was driven by seasonal factors. Capex remained almost at the level of Q1 2018.

Free cash flow

Q1 2019 free cash flow amounted to RUB 197 bln (USD 3.0 bln). The reduction compared to Q4 2018 was due to higher working capital requirements on the back of increase in price levels at the end of the reporting period compared to December 2018.

Financial stability

In Q1 2019 the Company reduced its gross debt by 12%, while the share of short-term liabilities decreased from 22% to 20% providing further support to the Company’s financial stability. Net debt/EBITDA level was 1.3x in USD terms at the end of the quarter.

----- 

Earlier:  

ROSNEFT'S NET INCOME, $: +134%
2019, February, 6, 11:00:00
ROSNEFT'S NET INCOME, $: +134%
ROSNEFT - Financial results for 12M 2018 and 4Q 2018 EBITDA growth by 1.5 times YoY up to RUB 2 trln with margins improvement up to 25% Net Income jumped by 2.5 times YoY up to RUB 549 bln in 12M 2018 Fee cash flow in 12M 2018 up to USD 17.9 bln Drop over USD 14 bln of total trading prepayments and net debt
 
 
 ROSNEFT'S PRODUCTION 5.8 MBD
2019, February, 6, 10:55:00
ROSNEFT'S PRODUCTION 5.8 MBD
ROSNEFT - Hydrocarbon production amounted to 285.5 mln toe (5.80 mmboed) in 2018, exceeded 2017 levels by 1.3%. Q4 2018 hydrocarbon production amounted to 73.7 mln toe (5.94 mmboed), which exceeded the Q3 2018 result by 1.8%.
 
 ROSNEFT'S RESERVES +4%
2019, February, 6, 10:50:00
ROSNEFT'S RESERVES +4%
ROSNEFT - As of 31.12.2018, Rosneft SEC proven hydrocarbon reserves were 41,431 mmboe (5,597 mmtoe)*. The hydrocarbon reserves increased by 1,524 mmboe (202 mln toe) versus reserves as of 2017 end or by 4%.
 
 ROSNEFT: NET INCOME UP BY 3.4 TIMES
2018, November, 7, 11:15:00
ROSNEFT: NET INCOME UP BY 3.4 TIMES
ROSNEFT - 3Q 2018 EBITDA growth by 13.8% QoQ up to RUB 643 bln, 9M 2018 EBITDA growth by 1.6 times YoY up to RUB 1,593 bln with margins improvement 9M 2018 Net Income jumped by 3.4 times YoY up to RUB 451 bln Free Cash Flow improvement in 3Q 2018 by more than 2 times QoQ up to RUB 509 bln and over 4 times YoY up to RUB 872 bln
 
 ROSNEFT'S PRODUCTION 5.83 MBD
2018, November, 7, 11:10:00
ROSNEFT'S PRODUCTION 5.83 MBD
ROSNEFT - Q3 2018 AVERAGE DAILY HYDROCARBON PRODUCTION REACHED 5.83 MMBOE, DEMONSTRATING A 2.1% GROWTH VS. Q2 2018 LEVEL
 

 

Log in to read the publication.

An authorized user gets access to four FREE publications per month.

You can also buy a full access to all publications of the site since January 2014.

Tags: РОСНЕФТЬ, ROSNEFT
Chronicle:
ЧИСТАЯ ПРИБЫЛЬ РОСНЕФТИ +61,7%
2019, May, 24, 09:55:00
SOME PROBLEMS OF WORLD ENERGY. PART FOUR.
The introduction of oxygen energy technologies will allow 3-5 times reduce the price of heat and electricity, which will expand the use of the benefits of electricity to virtually all people on Earth, regardless of their economic condition and their removal from the traditional onnyh energy sources.
ЧИСТАЯ ПРИБЫЛЬ РОСНЕФТИ +61,7%
2019, May, 24, 09:50:00
FIRST BANGLADESH'S LNG
Bangladesh’s second liquefied natural gas (LNG) floating facility is set to receive its first ship-to-ship transfer of gas from an Algerian cargo,
ЧИСТАЯ ПРИБЫЛЬ РОСНЕФТИ +61,7%
2019, May, 23, 12:35:00
OIL PRICE: ABOVE $70 YET
Brent crude futures were at $70.36 per barrel, down 63 cents, or 0.9%, from their last close. U.S. West Texas Intermediate (WTI) crude futures were down by 51 cents, or 0.8%, at $60.91 per barrel.
ЧИСТАЯ ПРИБЫЛЬ РОСНЕФТИ +61,7%
2019, May, 23, 12:15:00
U.S. SANCTIONS FOR GERMANY
The German Economy Ministry has taken note of the threat of U.S. sanctions being placed on the Nord Stream 2 gas pipeline project, a spokeswoman said on Wednesday, adding that Berlin rejected sanctions that have extraterritorial effect.
ЧИСТАЯ ПРИБЫЛЬ РОСНЕФТИ +61,7%
2019, May, 23, 12:10:00
RUSSIA'S GAS FOR AUSTRIA: +44%
the meeting participants discussed the ongoing exports of Russian gas to Austria, noting that gas exports to the country continue to grow in 2019 and the pace is accelerating. According to preliminary data, gas supplies went up by 20.5 per cent in January-April 2019 compared to the same period of 2018, while the May 1–20 period of this year showed a 44 per cent increase.
ЧИСТАЯ ПРИБЫЛЬ РОСНЕФТИ +61,7%
2019, May, 23, 12:05:00
VIETNAM, RUSSIA LNG
NOVATEK announced that its joint venture Arctic LNG 2 and TechnipFMC signed a contract on engineering, procurement, supply, construction and commissioning of an integrated liquefied natural gas facility with annual liquefaction capacity of 19.8 million tons under the Arctic LNG 2 project. The contract terms provide for the launch of the first train of the project in 2023.
ЧИСТАЯ ПРИБЫЛЬ РОСНЕФТИ +61,7%
2019, May, 23, 12:02:00
21ST AFRICA ENERGY FORUM | 11-14TH JUNE | PORTUGAL
The Africa Energy Forum (AEF) is the global investment meeting for Africa’s power, energy, infrastructure and industrial sectors.
All Publications »