November 24, 2014, Moscow. Today, Bashneft Group, which comprises JSOC Bashneft, its subsidiaries and affiliates, released its unaudited consolidated financial statements for the third quarter of 2014 and the nine months ended September 30, 2014 prepared in accordance with International Financial Reporting Standards (IFRS).
3Q 2014 vs. 2Q 2014:
- The Group’s revenue from sales decreased by 0.2% to RUB 162,861 million;
- Adjusted EBITDA increased by 2.6% to RUB 30,298 million;
- Net income attributable to the shareholders of the parent company declined by 1.54% to RUB 15,611 million;
- Operating cash flow decreased by 27.2% from RUB 42,001 million to RUB 30,575 million;
- Capital expenditure increased by31.5% and totalled RUB 12,832 million;
- Oil production increased by 5.1% (4,596 thousand tonnes), while the output of petroleum products fell by 1.1% (to 5,056 thousand tonnes);
- The output of Euro 5 gasoline declined by 7.0%, while the output of Euro 5 diesel fuel grew by 0.4%.
9M 2014 vs. 9M 2013:
- The Group’s revenue from sales increased by 13.3% to RUB 472,705 million;
- Adjusted EBITDA increased by 10.8% to RUB 85,293 million;
- Net income attributable to the shareholders of the parent company increased by 39.6% to RUB 45,425 million;
- Operating cash flow increased by 31.8% from RUB 58,932 million to RUB 77,697 million;
- Capital expenditure added 37.6% and amounted to RUB 31,643 million;
- Oil production grew by 10.0%, while the output of petroleum products grew by1.6%;
- The output of Euro 5 gasoline and diesel fuel increased by 34.1% and 21.7% respectively.
A considerable improvement in financial performance during the nine months of 2014 was driven mainly by an increase in oil production combined with a favourable pricing environment.
In the third quarter of 2014, a 27.2% quarter-on-quarter reduction in the amount of cash generated from operating activities was related to a high base in the second quarter, including prepayment received by the Company under a long-term contract for supply of petroleum products during that period which amounted to $ 500 million.
Higher capital expenditure was related primarily to an increase in investment in the development of the Trebs and Titov fields in the Nenets Autonomous District, as well as to the growth of capital expenditure at brownfields.
As of September 30, 2014, the Group’s total debt amounted to RUB 166,436 million, up by 1.1% compared to the level reached as of June 30, 2014 (RUB 164,604 million). As of September 30, 2014, adjusted net debt amounted to RUB 127,577 million, which is 19.1% higher than the level reached as of June 30, 2014 (RUB 107,124 million).
During the nine months of 2014, oil production at the Company’s fields totalled 13,085 thousand tonnes, up by 10.0% compared to the same period in 2013. In the third quarter of 2014, average daily oil production reached 50 thousand tonnes per day.
The considerable increase in oil production in the third quarter of 2014 was related to a 3.8% increase in production at brownfields due to highly efficient geological and engineering operations and the fact that the Company produced 572 thousand tonnes of oil at the Trebs and Titov fields and 397 thousand tonnes of oil at the Sorovskoye field of LLC Burneftegaz.
During the nine months of 2014, Bashneft’s refining complex in Ufa processed 16,323 thousand tonnes of hydrocarbons, which is 1.7% more than in the same period in 2013. During the nine months of 2014, average refining depth (84.9%) and the share of light products (60.1%) remained almost unchanged year-on-year.
In the third quarter of 2014, the output of commercial products decreased by 1.1% quarter-on-quarter to 5,056 thousand tonnes. In the third quarter of 2014 gasoline output declined by 7.8% quarter-on-quarter to 1,169 thousand tonnes, which was related to a number of operational factors. Consequently, the output of Euro 5 gasoline decreased by 7.0% to 1,047 thousand tonnes; at the same time, its share in the total gasoline output increased to 89.6%.
In the third quarter of 2014, the output of diesel fuel fell by 3.6% quarter-on-quarter to 1,880 thousand tonnes. At the same time, in the third quarter of 2014, the output of Euro 5 diesel fuel amounted to 706 thousand tonnes, remaining almost unchanged compared to the previous quarter.
During the nine months of 2014, the output of Euro 5 gasoline increased by 34.1% to 3,120 thousand tonnes, while the output of Euro 5 diesel fuel rose by 21.7% to 1,923 thousand tonnes.
KEY FINANCIAL AND OPERATING RESULTS FOR THE THIRD QUARTER
AND THE NINE MONTHS OF 2014
|
|
3Q |
2Q |
Change |
9M |
9M |
Change |
|
2014 |
2014 |
2014 |
2013 |
|||
|
Oil production (thousand tonnes) |
4,596 |
4,374 |
5.1% |
13,085 |
11,900 |
10.0% |
|
Oil refining (thousand tonnes) |
5,524 |
5,481 |
0.8% |
16,323 |
16,053 |
1.7% |
|
Sales revenue (million roubles) |
162,861 |
163,176 |
-0.2% |
472,705 |
417,054 |
13.3% |
|
EBITDA (million roubles) |
29,985 |
28,593 |
4.9% |
83,337 |
76,169 |
9.4% |
|
Adjusted EBITDA (million roubles) |
30,298 |
29,520 |
2.6% |
85,293 |
76,981 |
10.8% |
|
Operating income (million roubles) |
24,099 |
22,863 |
5.4% |
66,666 |
61,952 |
7.6% |
|
Net income excluding minority interest (million roubles) |
15,611 |
15,855 |
-1.54% |
45,425 |
32,542 |
39.6% |
|
Operating cash flow (million roubles) |
30,575 |
42,001 |
-27.2% |
77,697 |
58,932 |
31.8% |
|
CAPEX (million roubles) |
12,832 |
9,758 |
31.5% |
31,643 |
22,989 |
37.6% |
|
Adjusted net debt (million roubles) |
127,577 |
107,124 |
19.1% |
127,577 |
57,504 |
121.9% |
