IFRS FINANCIAL AND OPERATING RESULTS FOR SECOND QUARTER 2012 August 13, 2012, Saint-Petersburg
AGENDA IFRS FINANCIAL AND OPERATING RESULTS FOR SECOND QUARTER 2012 2
STRONG FINANCIAL PERFORMANCE WHILE ADVANCING ON STRATEGIC GOALS 1H 2012 Financial performance: Revenue: RUB 579 bln (+19% Y-o-Y) EBITDA*: RUB 149 bln (+7% Y-o-Y) Net Income: RUB 79 bln (+0.4% Y-o-Y) Continued operational progress:…
Macro Environment Strong domestic demand, stable product prices, lower crude prices, appreciating ruble IFRS FINANCIAL AND OPERATING RESULTS FOR SECOND QUARTER 2012 5
LOWER CRUDE PRICES; TAXES FAVOR DOWNSTREAM MARGINS Crude & Product Prices, USD/bbl Netbacks, /bbl Ruble appreciation had negative effect on Net Substantially squeezed upstream margins Income Domestic product prices remained steady…
Upstream New assets and improved technologies offset base decline IFRS FINANCIAL AND OPERATING RESULTS FOR SECOND QUARTER 2012 7
OUTPUT GROWTH FROM SEVERENERGIA, ORENBURG AND IMPROVED TECHNOLOGIES OFFSETS BASE DECLINE Group hydrocarbon production 2Q12 vs 2Q11 reconciliation Increased hydrocarbon production 5% Y-o-Y: Growth partially offset by: Started gas…
EFFICIENCY AND OPTIMIZATION EFFORTS DELIVER INDUSTRY-LEADING COST CONTROL % change OPEX/boe 1H12 Y-o-Y * Rosneft and TNK-BP IFRS FINANCIAL AND OPERATING RESULTS FOR SECOND QUARTER 2012 9
INCREASING PRODUCTION WITH HORIZONTAL WELLS AND STATE OF THE ART TECHNOLOGY Completed 20 horizontal wells in 1H12 (+25%) with average initial flow of 102.1 tonnes/day (+40% Y-o-Y). Improved initial flow rates by lengthening…
HARD-TO-RECOVER RESERVES DEVELOPMENT PROGRAM STARTED IN 1H12 Completed 53 drilling/workover operations in 1H12 in fields classified by company experts as hard-to-recover As a result 3.2 mln tonnes of oil from these challenging assets…
NEW PROJECT DEVELOPMENTS PROCEEDING AS PLANNED Russian International Projects Projects Novoport: Drilling four pilot production wells, selected contractors and started construction of Eastern Europe: Increased production at NIS…
Downstream Product quality continues to improve as investment program accelerates, driving diverse premium sales IFRS FINANCIAL AND OPERATING RESULTS FOR SECOND QUARTER 2012 13
REFINERY MODERNIZATION CONTINUES WHILE PREMIUM SALES SEE SUSTAINED GROWTH 1H12 Key events: 2012 Major goals: Refining Increased Refining volumes 8% 1H12 over 1H11 Stream FCC diesel hydrotreater at Omsk, increasing high-quality diesel…
REFINING CONTINUES TO GROW ON STRONG DEMAND Gazprom Neft crude mix Gazprom Neft average netbacks (MMTonnes) /bbl Crude to CIS & Russia Crude Exports Refining High refining margins as netbacks stay fairly stable and…
REFINING THROUGHPUTS CONTINUE TO INCREASE, WITH GREATER SHARE OF HIGHER-VALUE PRODUCT Gazprom Neft refining throughput Gazprom Neft gasoline and diesel Gasoline excise 1H12 (MMTonnes) yields (MMTonnes) (RUB/Tonne) 7,725 7,382 2Q11…
4 DOMESTIC AND INTERNATIONAL PREMIUM CHANNELS DELIVER CONTINUED GROWTH Opened 4 new Expanded aviation 1H11 vs. 1H12 premium Market share stations in Ukraine refueling operations in RF sales growth 1H11 v. 1H12 10% 13.6% Noviy…
POLYMER BITUMEN BECOMING A MORE COMPETITIVE, INTEGRATED INDUSTRIAL SEGMENT Polymer bitumen is used as an innovative The use of polymer bitumen can improve the alternative to road operational performance of complex bitumen, as a…
Financials 6.6% EBITDA Increase Y-o-Y IFRS FINANCIAL AND OPERATING RESULTS FOR SECOND QUARTER 2012 19
LOWER CRUDE PRICES AND EXCHANGE RATE VOLATILITY AFFECT FINANCIAL RESULTS 8.4% revenue increase Q-o-Q on higher sales volumes, partially offset by lower crude and petroleum Revenues products prices RUB bln Revenue rose 18.8% Y-o-Y…
EBITDA RECONCILIATION 1H12 VS.1H11 IFRS FINANCIAL AND OPERATING RESULTS FOR SECOND QUARTER 2012 21
EBITDA RECONCILIATION 2Q12 VS.1Q12 IFRS FINANCIAL AND OPERATING RESULTS FOR SECOND QUARTER 2012 22
US 1.7** BILLION FREE CASH FLOW GENERATED IN FIRST SIX MONTHS OF 2012 RUB million Cash flow reconciliation 1H12 Bank deposits * Includes changes in investments in associated companies and proceeds from such investments ** At…
HIGHER INVESTMENT REFLECTS GREENFIELD PROJECT DEVELOPMENTS, REFINERY UPGRADES AND REBRANDING Investments in new upstream projects, refinery upgrades and 1H12 vs 1H11 CAPEX (RUB mln) premium products outlets increased total capex (excl.…
CONTINUED IMPROVEMENTS IN BALANCE SHEET AND DEBT PORTFOLIO Net debt/EBITDA 0.6x vs.…
Questions & Answers IFRS FINANCIAL AND OPERATING RESULTS FOR SECOND QUARTER 2012 26
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