IFRS FINANCIAL AND OPERATING RESULTS FOR SECOND QUARTER 2013 6 August 2013, St. Petersburg
AGENDA Highlights, Alexey Yankevich Macro Member of the Management Board, Environment, CFO Financials Upstream Mihail Zhechkov Head of Economics and Investment Department, Exploration and Production Division Downstream…
HIGHLIGHTS 1H 2013 Financial performance: Revenue: RUB 591 bln (+1.8% Y-o-Y) EBITDA*: RUB 151 bln (+0.9% Y-o-Y) Net Income: RUB 78 bln (-1.4% Y-o-Y) Operational progress in 1H 2013: Hydrocarbon production up 3.6% Y-o-Y Refining…
Upstream Major project execution and use of new technologies deliver continued growth in hydrocarbon output IFRS FINANCIAL AND OPERATING RESULTS FOR SECOND QUARTER 2013 5
LEGACY FIELDS: EXPLORING NEW OPPORTUNITIES 1H 2013 Key events: Exploration: Tight oil Testing continues on Bazhenov formation at Palyanovskaya acreage of Krasnoleninskoye field Exploratory drilling identified Jurassic layer crude…
GROWTH DRIVEN BY ORENBURG ASSETS, SEVERENERGIA, AND EFFICIENT DEVELOPMENT OF LEGACY FIELDS Group hydrocarbon production, MMtoe 2Q 2013 vs 2Q 2012 reconciliation Legacy fields Increased hydrocarbon production 4.4% Y-o-Y: Growth…
GAZPROM NEFT LEADS THE INDUSTRY IN 1H 2013 HYDROCARBON PRODUCTION GROWTH Peer comparison: hydrocarbon production increase in Russia* Average daily production**, ktoepd 1H 2013 vs 1H 2012, % 180 Gazprom neft 175 169.0 169.2 Lukoil…
ACTIVE USE OF NEW TECHNOLOGIES AT LEGACY ASSETS Horizontal Drilling As part of 2013 drilling efficiency improvement program, increased drilling of highly effective horizontal wells by a factor of 2.8 vs. 2012 Multi-stage…
DRILLED FIRST QUADRILATERAL WELL AT UMSEYSKOYE FIELD (KHMAO), DELIVERING 200 TPD INITIAL PRODUCTION Well No. 1001, Cluster 13 In planning the drilling project, multiple options were evaluated, including 2, 3, 4 and 5 horizontal bores…
SIGNIFICANT GROWTH IN ASSOCIATED GAS UTILIZATION Associated gas production/utilization, bcm Associated gas production/utilization +1.1 bcm of utilized associated gas 1H13 vs. 1H12, bcm Utilization 78%* 6.7 66%* Flaring 6.4 3.3 3.1…
UPSTREAM PROJECT DEVELOPMENT UPDATE 1H 2013 Key events: 2013 Major goals: Russian projects Messoyakha: Increased reserves by 2.9 MMtoe as Messoyakha: Order equipment for key a result of exploration program. Delivered 421…
UPSTREAM PROJECT DEVELOPMENT UPDATE 1H 2013 Key events: 2013 Major goals: International Iraq (Badra): Drill and complete well P8. Projects Test three wells. Commission infrastructure Iraq (Badra): Two wells drilled and in for first…
DEVELOPMENT OF HARD TO RECOVER RESERVES Key Events Kuyumba exploration and test production: Shot 501.5 km2 of 3D seismic; drilled a total of 5.9 km of exploratory wells, 13.9 km of development wells Palyanovskiy Project: Well 153 in…
Downstream Continuing product quality increases and substantial growth in premium channels IFRS FINANCIAL AND OPERATING RESULTS FOR SECOND QUARTER 2013 15
CRUDE PRICES AND NETBACKS FALL AS RETAIL PRICES FLUCTUATE Crude oil prices Gazprom Neft average netbacks /bbl /bbl Domestic product wholesale prices change Domestic product retail prices change +11% Diesel +10% Diesel +7%…
87% OF OWN CRUDE PROCESSED IN COMPANYS HIGH QUALITY REFINERIES Crude distribution, Change 1.52 MMTonnes Y-o-Y MMTonnes -51.9% Crude Purchases 12.49 MMTonnes -0.5% Omsk Crude Production 5.2 -1.0% Refinery Crude Balance…
REFINING HIGHLIGHTS Executing turnaround cycle extension programme Complete Quality programme at all Refineries Switch to Euro 5 quality motor fuels at all refineries Formed JV with TOTAL to produce euro-bitumen at Moscow…
COMPLETED RUSSIAN REFINERY QUALITY UPGRADE PROGRAM Omsk Gasoline excise tax rates*, RUB/tonne Gasoline yield Capacity Naphtha 15,000 Unit (MM tonnes) Year Class 2 Isomerization 0.8 2010 13,000 Class 3 58% FCC Hydrotreater 1.2 2012…
RETAIL SALES GROW IN SECOND QUARTER Retail sales in 2Q 2013: Russia and CIS 2.0 MMTonnes +7.1% Y-o-Y NIS 0.2 MMTonnes +66.1% Y-o-Y Throughput per station in Russia reached 18.4 tpd in 2Q 2013 Non-oil sales grew by 41% Y-o-Y in 2Q…
GAZPROM NEFT RETAIL GASOLINE AND DIESEL SALES OUTPERFORM RUSSIAN AVERAGE Russia +4.3% +3.4% + 8.3% + 10.8% Gazprom Neft Gasoline sales growth drivers: Diesel sales growth drivers: Retail chain rebranding Retail chain…
SUBSTANTIAL INTERNATIONAL EXPANSION IN PREMIUM CHANNELS Aviation Bunkering 1H 2013 Key events: 1H 2013 Key events: Expanded global presence to 104 airports in 42 countries Finalized acquisition of Romanian bunkering operator ( +16…
EXPANDING MARKET SHARE DRIVES VOLUME GROWTH Lubricants Bitumen 1H 2013 Key events: 1H 2013 Key events: Sales of G-Family products grew by 41% y-o-y Began rail shipments of packaged bitumen from Omsk Began deliveries to Libya,…
G-DRIVE AND G-ENERGY DECLARED BRANDS OF THE YEAR The G-Drive premium fuel and G-Energy premium-class motor oil brand names were awarded the 2012 Effie Brand of the Year award, given to the most successful brand creation and promotion…
Financials Production increases offset by adverse moves in prices, taxes, inflation and exchange rates IFRS FINANCIAL AND OPERATING RESULTS FOR SECOND QUARTER 2013 25
LOWER CRUDE PRICE AND HIGHER TAXES NEGATIVELY AFFECTED GAZPROM NEFT FINANCIALS Brent, export duty & Fx MET tax rate reconciliation Rub. Domestic product prices & excise taxes Crude prices decrease Y-o-Y and Q-o-Q Ruble…
PROFIT ERODED BY TAXES AND TARIFFS ON NATURAL MONOPOLIES Revenue grew 1.8% Y-o-Y on higher -1.0% +1.8% production volumes and increased +2.4% sales through premium channels, 345 591 Revenues 319 580 partially offset by lower crude…
EBITDA RECONCILIATION 1H 2013 VS. 1H 2012 EBITDA 1H 2013 vs 1H 2012, RUB mln IFRS FINANCIAL AND OPERATING RESULTS FOR SECOND QUARTER 2013 28
EBITDA RECONCILIATION 2Q 2013 VS. 1Q 2013 EBITDA 2Q 2013 vs 1Q 2013, RUB mln IFRS FINANCIAL AND OPERATING RESULTS FOR SECOND QUARTER 2013 29
INVESTMENTS SUPPORT STRATEGIC GOALS AND UPSTREAM PRODUCTION IN MATURE FIELDS Investments (RUB mln) 12% Y-o-Y growth in brownfield capex due to increase in use of new technologies in 87,816 legacy fields +22% 6,011 3,225 Active…
CONTINUED IMPROVEMENTS IN BALANCE SHEET AND DEBT PORTFOLIO 2.0 80% 0.5% 1.5 60% 14.4% 1.0 40% USD RUB Euro 0.5 20% 52.9% Other 32.2% 0.0 0% 2012 1Q13 2Q13 Net debt/EBITDA (lhs) Debt to EBITDA target (lhs) Short term…
Questions & Answers IFRS FINANCIAL AND OPERATING RESULTS FOR SECOND QUARTER 2013 33
Loading...
