The FINANCIAL — Rosneft posted record 2013 results: daily hydrocarbon production reached 4.9 mmboe, EBITDA amounted to RUB 947 bln supported by hydrocarbon production growth, increased efficiency and integration of new assets. Crude oil and liquids production equaled 4,196 th.bpd (organic growth 1%), gas production reached a record high figure of 38.17 bcm (organic growth 22%), according to Rosneft.
In 2013, the Company achieved a 2.9% growth of liquids production in Samaraneftegaz due to extraction of reserves discovered on fields acquired in 2011-2012 and increased geological exploration works efficiency caused by the use of 3D seismic. The Company continued to improve operational efficiency and control of its lifting costs, which in 2013 amounted to USD 4.8/bbl, the best unit-cost performance among world public companies.
According to oil and gas reserve information prepared by independent auditor proved hydrocarbon reserves increased by 74% (organic growth 11%) and amounted to 33.00 billion barrels of oil equivalent on the basis of the standards set forth by the U.S. Securities and Exchange Commission (“SEC”).
The 2013 performance has made Rosneft the third largest gas producer in Russia with increased gas production to 38.17 bcm, according to Rosneft. Gas production posted a record more than twofold growth which was primarily due to the integration of the major gas assets resulting from the TNK acquisition and also consolidation of the Itera assets. Favorable prerequisite for future organic growth of gas business were created in 2013. Rosneft is expanding development at Rospan, (Vostochno- Urengoysky and Novo-Urengoysky license blocks development). Kharampurskoe integrated gas project development plan is approved. In 2013, gas sales amounted to 39.07 bcm, including 24.02 bcm in West Siberia, 10.42 bcm in the European part of Russia and 0.94 bcm outside of Russia.
In October 2013, as part of the refinery modernization program, the largest crude oil distillation unit in Russia (AVT-12) was launched at the Tuapse refinery with the throughput of 12 mln t per year. In 4Q, main heavy manufacturing equipment was delivered to the Komsomolsk refinery, Achinsk refinery, Novokuibyshev refinery, Kuibyshev refinery, Angarsk petrochemical complex, and Syzran refinery. The Company is successfully competing in the retail oil product and jet fuel markets. The customer base of the high-marginal “in-wing” fueling channel has been expanded with a number of new counter-parties added. The 2013 results show an increase of fuel volumes delivered on contracts with air lines up to RUB 67.8 bln which is 23% more compared to 2012, according to Rosneft.
In 2013, the Company made a number of key acquisitions with the total synergy effect from capital and operational expenditure reductions amounting to RUB 23 bln.
Despite an unfavorable macroeconomic environment in 2013, the revenues (including the share in the profits of associates and joint ventures) reached a record RUB 4,694 bln (revenue organic growth 2.5%), according to Rosneft.
In 2013, EBITDA amounted to RUB 947 bln. The Company continues its policy of effective cost control and is constantly implementing the synergy effect on its financial performance, which helps to maintain a stable EBIDTA level.
Rosneft’s 2013 net income totaled RUB 551 bln, according to Rosneft.
The Company continues to generate a cash flow sufficient to cover its investment needs. In 2013, the Company increased its 2012 dividend payments to RUB 85 bln.
The Company intends to gradually de-leverage. In 2013 the Company repaid part of the loans attracted to acquire TNK assets in the amount of RUB 166.9 bln.
The Company is the country’s biggest corporate taxpayer. The tax revenues from Rosneft to the Russian budget in 2013 equaled RUB 2.7 trln, according to Rosneft.
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