ROSNEFT OIL COMPANY (ROSN) ROSNEFT OIL COMPANY: Financial results for 2Q 2021 and 1H 2021 13-Aug-2021 / 10:00 MSK released a regulatory notice containing inside information according to REGULATION (EU) No. 596/2014 (MAR) by EQS Group. The issuer is solely responsible for the content of this announcement. ————————————————– ————————————————– ——————- Financial results for the 2nd quarter and 1st half of 2021 – net profit reached 233 billion rubles in the 2nd quarter and 382 billion rubles in the 1st quarter. Half-year 2021. – EBITDA by more. increased compared to the first half of 2020 to RUB 1,016 billion, more than doubling. – The operating costs for the upstream units remained at a minimum level of 2.6 USD / boe (194 RUB / boe). – The FCF increased 2.5 times in the first half of 2021 to 505 billion RUB compared to the level of the first half of 2020. – Since the beginning of the year, the total financial debt has decreased by 6%, the third quarter in a row in which the debt has been reduced. – Debt and trading liabilities decreased $ 5.9 billion in the first half of 2021 – Net debt / EBITDA was 1.7x, after down a third in the first half of 2021. 1H 1H change, 2021 2021% 2021 2020% RUB bn (except%) sales and equity share in profits from associated companies and joint ventures 2,167 1,737 24.8% 3,904 2,797,1 39.6% EBITDA 571 445 28.3% 1,016 479> 100% EBITDA margin 25.9% 25.0% 0.9 pp 25.5% 16.7% 8.8 pp Net income attributable to Rosneft shareholders 233 149 56.4% 382 (113)? Net profit margin 10.8% 8.6% 2.2 pp 9.8% (4.0)% 13.8 pp Investments 237 225 5.3% 462 367 25.9% Free cash flow (RUB equivalent) 2 315 190 65.8% 505 206> 100% Upstream operating expenses RUB / boe 194 194 – 194 199 (2.5)% USD bn3 (except in%) Revenue and equity share in profits of associates and joint ventures 29.8 23.9 24.7% 53.7 42.5 26.4% EBITDA 7.7 6.0 28.3% 13.7 7.4 85.1% Net profit attributable to Rosneft shareholders 3.1 2.0 55.0 % 5.1 (1.3)? Investments 3.1 3.0 3.3% 6.1 5.3 15.1% Free Cash Flow 4.4 2.5 76.0% 6.9 3.4> 100% Upstream Operating Costs USD / boe 2.6 2.6 – 2.6 2.9 (10.3)% As a reference, average Ural price. USD per barrel 66.7 59.3 12.4% 63.0 39.7 58.9% Average Ural price. NS. RUB per barrel 4.95 4.41 12.2% 4.68 2.75 70.2%
1Indicator is adjusted to reflect changes in data in the comparison period.
2The calculation includes the interest expenses for the advance payments from the long-term supply contracts for crude oil and petroleum products.
3 Calculated using the average monthly exchange rates of the Central Bank of Russia for the reporting period.
Rosneft Chairman and Chief Executive Officer Igor Sechin commented on the financial results for the first half of 2021:
“In the reporting period, despite all the challenges posed by the COVID-19 pandemic, we managed to ensure the continuity of our business and to show strong financial and operational results. We have addressed the issues of life and health protection as well as the safety of our employees. In March, the company started a vaccination program in which more than 263,000 people have participated so far. The result of the program was the formation of collective immunity. In order to prevent the spread of the disease further, we plan to continue implementing the program.
Thanks to the improvement in the macroeconomic environment in the second quarter of 2021, in particular the recovery in the prices of crude oil and petroleum products in international markets, net income was among the highest in its history, while EBITDA and free cash flow increased in the first half of 2021 doubled. The high operational and productive efficiency enabled the company to significantly improve its financial performance and to consistently further reduce its financial debt. The company’s upstream operating costs remained at a minimum of $ 2.6 / boe.
We concentrate on the implementation of large projects with high efficiency and quality reserves. In the second quarter, two production lines were put into operation at the Rospan gas project, which enabled a significant increase in production. As a result, the production unit became the company’s greatest asset in terms of gas production. As part of the implementation of the flagship project Vostok Oil in the Krasnoyarsk Oblast, Rosneft began building the most important infrastructure facilities.
In July, Rosneft prematurely completed the dividend payment of 73.5 billion rubles for 2020. The strong financial results for the first half of 2021 have laid a solid foundation for paying interim dividends and significantly increasing total payments for the full year.
Financial performance
Revenues and equity share in the profit of associated companies and joint ventures
Revenue and equity share of profits from associates and joint ventures were RUB 2,167 billion (USD 29.8 billion) in the second quarter of 2021. The quarter-on-quarter increase in sales was mainly due to the implementation of the production growth program under the revised OPEC + agreement with effect from January 2021, as well as higher crude oil prices.
Sales rose by 39.6% compared to the same period in the 1st half of 2020 due to the increase in the price of crude oil (+ 70.2% to the level of the 1st half of 2020) despite the lower production volumes (-18.3% to the level of the 1st half of 2020) Half year 2020) in accordance with the OPEC + agreement, which will come into force in 2020.
EBITDA
EBITDA for the second quarter of 2021 was RUB 571 billion (USD 7.7 billion). The increase in EBITDA (+ 28.3%) compared to the level of Q1 2021 was driven by the following positive factors: higher crude oil prices, positive effect of the dampening component of the reverse excise tax, an increase in the supply of hydrocarbons and effective management efforts aimed at Maintain the lowest unit operating costs in the oil industry, which remained at 194 RUB / boe ($ 2.6 / boe) in the second quarter of 2021.
The higher EBITDA compared to the first half of 2020 was mainly due to higher prices and a positive effect of the reverse excise tax in 2021.
Net profit attributable to Rosneft shareholders
In the second quarter of 2021, the company posted one of the highest net profits in its history of RUB 233 billion (USD 3.1 billion). The higher net income compared to the first quarter of 2021 is mainly due to the higher operating income.
The significant increase in net income compared to the level of the first half of 2020 was driven by the higher operating income, the reduction in net financial expenses and the lower negative impact of non-monetary factors.
Investments
Investments amounted to RUB 237 billion in the 2nd quarter of 2021 and to RUB 462 billion in the 1st half of 2021, which is 25.9% higher than in the 1st half of 2020 volumes at Yuganskneftegaz.
Free cash flow
Free cash flow was RUB 505 billion (USD 6.9 billion) in the first half of 2021, an increase of 2.5 times over the previous year. The increase in free cash flow compared to the first half of 2020 was driven by the growth in operating income.
Financial stability
The implementation of measures to further improve financial stability made it possible to reduce financial debt and trading liabilities by USD 5.9 billion including financial debt – by USD 2.6 billion in the first half of 2021. Net debt / EBITDA in USD was 1.7x, after falling by a third in the first half of the year. The high level of financial stability was supported by a low short-term component of financial debt, which was kept at a level of 14% in the reporting period. Taking into account the available credit lines, the liquid financial assets on the balance sheet date significantly exceeded the current liabilities.
Rosneft Information Department
Tel .: +7 (495) 411 54 20
Fax: +7 (495) 411 54 21
August 13, 2021
These materials contain forward-looking statements about future events and expectations. Any statement in these materials that is not a historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements to be expressed in such forward-looking statements are implied differ. We assume no obligation to update the forward-looking statements contained herein to reflect actual results, changes in assumptions, or changes in factors that affect these statements. ————————————————– ————————————————– ——————-
ISIN: US67812M2070, RU000A0J2Q06 Category Code: IR TIDM: ROSN LEI Code: 253400JT3MQWNDKMJE44 Sequence number: 119885 EQS News ID: 1226277 End of announcement EQS News Service —————— — ———————————————– — ————–
Image link: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=show_t_gif&application_id=1226277&application_name=news
(END) Dow Jones Newswires
Aug 13, 2021 3:00 AM ET (7:00 AM GMT)