Array ( [0] => en [1] => 11/29/2018 )
  • 29 november 2018
    PJSC “RussNeft” announces ISFR financial results for 1H 2018
  • Highlights:

    • EBITDA more than doubled to 24.8 bn Rub.
    • EBITDA profitability made up 28%.
    • The adjusted profit for the period amounted to 9.8 bn Rub., 3.8х growth.
    • Oil production output was 3.7 mln tons.
    • Maintaining high capital investment level, totaling 14.4 bn Rub in 1H 2018.
    • Net debt/EBITDA ratio equals 2.

    Key Performance Results

    Financial results

    Financial results bn Rub. 1H 2018 H2 2017 Variation
    Revenue 88.4 57.7 53%
    EBITDA 24.8 12.2 103%
    OIBDA 25.9 12.7 104%
    Profit attributable to “RussNeft” shareholders 1.8 3.2 (44%)
    Adjusted profit 9.8 2,6 285%
    Net debt 83.8 79.5 5%

    “RussNeft” showed significant growth of financial indicators in 1H 2018 at flat production. The revenue grew by 53% and amounted to 88.4 bn Rub. EBITDA was 24.8 bn Rub., by 103% higher against the same period last year. The growth of financial indicators was fueled by the increase in oil prices, as well as by involving the so called high-margin oil into production.

    Profit attributable to “RussNeft” shareholders amounted to 1.8 bn Rub., which is by 44% lower against the same period last year. The decrease of the profit was mainly determined by non-cash loss from revaluation of the fair value of the derivatives (options), as well as by the impact form negative exchange rate differences.

    The adjusted profit, excluding these factors, shows 3.8x growth and equals to 9.8 bn Rub. 1H 2018 financial indicators represent significant improvement of the Company’s operational profile.

    Operating results

    Operating results 1H 2018 1H 2017 Variation
    Oil production, mln tons, incl.: 3.744 3.721 1%
    Oil production in the Russian Federation, mln tons 3. 497 3. 472 1%
    Oil production under PSAs thous. tons 247 249 (1)%
    Gas production, mln cbm 1 336 1 141 17%

    The management of the Company endeavors to maintain the current production rate, as well as to reduce the hydrocarbon production expenses by producing high-margin oil and shut-down of non-profitable wells within current macroeconomic conditions. The oil production output in 1H 2018 stays commensurate with the last year.

    Capital Invesment

    Capital Investment (development), bn Rub. 14.4 12.7 13%
    Production drilling 11.2 8.7 29%
    Base production 1.3 1.1 18%
    Well interventions 1.6 0.8 100%
    Gas production 0.2 1.8 (89)%
    Geological anfd exploration works 0.1 0.3 (67)%

    The Company’s strategy involves active investments, targeted at increasing production drilling volumes, building new infrastructure and upgrading the existing one for maintaining flat production, reaching organic growth in the mid-term. The scale of investments in 1H 2018 reached 14.4 bn Rub., increasing 1H 2017 figures by 13% or by 1,7 bn Rub.

    Debt portfolio

    Net debt of the Company in the reporting year totaled up to 83,8 bn Rub. VTB Bank (PJSC) acts as the major creditor. Insignificant variation (increase by 5%) is related mainly to dynamics of the USD exchange rate. Efficient cooperation between the managers and the shareholders allowed the Company to reach target indicators for compliance with the financial and production covenants, interest payments on principal of the loan were timely and fully paid.

    Net debt/EBITDA ratio shows steady decline, for the first in the Company’s history this ratio equals 2, signaling of the financial sustainability stabilization.