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Q4 and 12M Results – Rosneft Oil Company

Rosneft Oil Company · Mar 4, 2009 · 44 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Q4 and 12M Results – Rosneft Oil Company – slide 1
    ROSNEFT Q4 and 12M08 US GAAP Financial Results March 4, 2009
  2. Q4 and 12M Results – Rosneft Oil Company – slide 2
    2008 Highlights Positives Challenges, Priorities Record financial results in 2008: 2008 EBITDA - USD 17.1 bln Real rouble appreciation through July 2008 Unfavourable price and tax environment in Operating cash flow - USD 14.4 bln…
  3. Q4 and 12M Results – Rosneft Oil Company – slide 3
    Tax & Transportation Tariff Burden: Q4 Negative Operating Income Export duty, Mineral extraction tax and Transportation tariff as a % of oil price (Yugansk export barrel) /bbl 99% 100% 140 120 90% 100 80% 80% 80 70% 71%…
  4. Q4 and 12M Results – Rosneft Oil Company – slide 4
    Macroeconomic Environment 2008 2007 , % Q408 Q407 , % Average RUB/USD rate 24.86 25.58 (2.9%) 27.27 24.65 10.6% Inflation for the period, % 13.3% 11.9% 2.7% 3.9% Real RUB appreciation/(depreciation) (5.3)% 20.0% (11.8)% 5.6%…
  5. Q4 and 12M Results – Rosneft Oil Company – slide 5
    Q408 and 12M08 Results Overview 2008 2007 , % Q408 Q407 , % Oil production, mln bbl 776.30 739.97 4.9% 195.72 205.47 (4.7)% Oil production (excluding assets 664.19 641.18 3.6% 166.94 166.92 0.0% acquired in 2007), mln bbl…
  6. Q4 and 12M Results – Rosneft Oil Company – slide 6
    Daily Crude Oil Production: Steady Organic Growth Daily Crude Oil Production in Russia, 2008 vs 2007 Rosneft 4.6% Russias average (0.8)% Rosneft , organic* 3.3% Tat neft 1.0% Crude output in Russia, th. bpd 10,000…
  7. Q4 and 12M Results – Rosneft Oil Company – slide 7
    Daily Crude Oil Production: Steady Organic Growth (cont.) mln bbl Rosneft Daily Crude Oil Production Reconciliation, 2008 vs 2007 th. bpd +4.6% total 72 2,121 2 84 (36) (13) (8) (7) 269* 'new' assets 1,758 +3.3%…
  8. Q4 and 12M Results – Rosneft Oil Company – slide 8
    Revenues Reconciliation: Q4 vs Q3 USD mln 20,690 (9,964) 361 (288) 10,799 20,690 (5,249) 503 Q3'08 Change in Change in Change in Q4'08 prices volumes structure (3,061) 24 (1,468) 10,799 (490) (150) Q3'08 Change in…
  9. Q4 and 12M Results – Rosneft Oil Company – slide 9
    Crude Oil Sales Crude Oil and Condensate Sales Volumes, mln bbl Average Prices, USD/bbl 140 57.3% 60% 140 55.6% 120 50.8% 120 100 113.7 50% 105.0 80 100 95.1 40% 60 40 80 30% 20 60 0 Q4'07 Q3'08 Q4'08 20% 40 Europe and…
  10. Q4 and 12M Results – Rosneft Oil Company – slide 10
    Gas Production and Sales Gas Sales vs Extraction (after flaring), bcm Gas Sales Prices, USD per 1,000 cubic meters 4.5 4.04 . Extraction 70 4.0 Sales 60 3.5 3.06 50 3.0 2.63 40.25 2.5 40 33.57 31.63 2.0 30 1.5 20…
  11. Q4 and 12M Results – Rosneft Oil Company – slide 11
    Petroleum Product Revenues Petroleum Products: Average Prices and Volume Breakdown USD/t 995.2 1,000 961.1 971.0 963.4 961.2 911.9 894.8 905.1 845.6 860.5 823.8 797.1 799.6 811.1 800 782.1 775.2 758.0 708.8 712.8 37%…
  12. Q4 and 12M Results – Rosneft Oil Company – slide 12
    Average Netback Exceeds Crude Net Export Revenue Total sales: 189 mln bbl 1. Urals average price: USD 54.1/bbl 2. Crude Export Duty: USD 38.8/bbl 3. Implied crude net export revenue (1-2) = USD 15.3/bbl Domestic sales: 1%; 19.1 4.…
  13. Q4 and 12M Results – Rosneft Oil Company – slide 13
    Average Netback Exceeds Crude Net Export Revenue (cont.) 1. Urals average price: USD 94.5/bbl Total sales: 740 mln bbl 2. Crude Export Duty: USD 48.6/bbl Non-Transneft export 3. Implied crude net export revenue (1-2) = USD 45.9/bbl…
  14. Q4 and 12M Results – Rosneft Oil Company – slide 14
    Upstream Operating Expenses USD/bbl 2 3.77 3.68 3.63 3.48 3.41 3.29 3.31 3.35 3.23 3.19 Q1 Q2 Q3 Q4 Annual 2007 Q1 Q2 Q3 Q4 Annual 2008 2007 2008 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 RUB/USD average 26.31 25.86…
  15. Q4 and 12M Results – Rosneft Oil Company – slide 15
    Refining Operating Expenses Refining Costs, USD/bbl 8.6* 5.3 5.2 4.9 4.2 4.2 3.9 3.5 3.5 3.4 3.6 3.6 3.6 3.3 3.1 2.9 3.1 2.3 2.9 1.6 1.8 1.6 1.3 1.4 1.5 1.2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 OPEX of legacy refineries…
  16. Q4 and 12M Results – Rosneft Oil Company – slide 16
    SG&A Expenses USD/bbl produced 2.51 2.62 2.45 2.31 2.03 2.11 1.96 1.88 1.59 1.26 Q1'07 Q2'07 Q3'07 Q4'07 2007 Q1'08 Q2'08 Q3'08 Q4'08 2008 Selling, general and administrative expenses include payroll at headquarters…
  17. Q4 and 12M Results – Rosneft Oil Company – slide 17
    Transportation Costs: Q408 vs Q407 Average Change in Transportation Tariffs in USD terms Transportation Costs (Q408 vs Q407), USD mln (Q408 vs Q407) Crude oil pipeline 17.3% exports 316 36 Crude oil pipeline (100) 14.3%…
  18. Q4 and 12M Results – Rosneft Oil Company – slide 18
    Cost Reduction Program: Key Priorities I. Reducing non-controllable costs Lower tax burden Lower natural monopoly tariffs (transportation, electricity) II. Reducing capital expenditures Prioritizing capital expenditures (short…
  19. Q4 and 12M Results – Rosneft Oil Company – slide 19
    EBITDA USD mln USD/bbl EBITDA, USD 7,000 120 mln 6,000 100 5,000 80 Average 4,000 crude 60 export duty, 3,000 USD/bbl 40 2,000 Oil price (Urals, 1,000 20 USD/bbl) 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2005…
  20. Q4 and 12M Results – Rosneft Oil Company – slide 20
    EBITDA per bbl Reconciliation: 2008 vs 2007 USD/bbl (18.99) 28.45 (0.42) (2.09) (3.07) 24.17 20.29* +19% 2007 Revenue Taxes SG&A exp. Transportation costs Other 2008 *Adjusted for the effect of non-operating…
  21. Q4 and 12M Results – Rosneft Oil Company – slide 21
    EBITDA per bbl Reconciliation: Q408 vs Q407 USD/bbl (22.59) 25.65* (99)% 1.45 (0.11) (2.07) (2.15) 0.18 Q4'07 Revenue Taxes SG&A exp. Transportation exp. Other Q4'08 *Adjusted for the effect of non-operating accrual of…
  22. Q4 and 12M Results – Rosneft Oil Company – slide 22
    Net Income per bbl Reconciliation: 2008 vs 2007 USD/bbl 28.45 +61% (18.99) 2.20 0.70 (1.90) (2.09) (0.27) 0.21 (1.15) (0.42) (1.08) 14,77** 9.11* 2007 Revenue Taxes Purchases Transport Opex and SG&A DD&A FX…
  23. Q4 and 12M Results – Rosneft Oil Company – slide 23
    Net Income per bbl Reconciliation: Q408 vs Q407 USD/bbl 11.08* (96%) 10.18 (1.31) 0.42** Q4'07 Revenue Taxes Purchases Transport Opex and SG&A DD&A FX gain Net Interest Income tax Other Q4'08 exploration expenses 6.55…
  24. Q4 and 12M Results – Rosneft Oil Company – slide 24
    Deferred Income Tax Balance Sheet: Balance Sheet Movements Balance value of deferred tax assets Short term Long term Short term Long term deferred deferred deferred tax deferred tax Total and liabilities = tax assets tax assets…
  25. Q4 and 12M Results – Rosneft Oil Company – slide 25
    FX Gains and Losses FX gain/loss in Income Statement = effect of foreign exchange rate movement on the average monetary position denominated in currencies other than USD (rubles for Rosneft) FX gain in Q4 2008 30.09.08 31.12.08…
  26. Q4 and 12M Results – Rosneft Oil Company – slide 26
    Operating Cash Flow Reconciliation: 2008 vs 2007 USD mln (2,433) 108 (1,193) 1,223 (1,717) 6,925 697 (395) 5,075 14,393 +136% 6,103* 2007 Net income DD&A Difference in Difference in Difference in Difference in…
  27. Q4 and 12M Results – Rosneft Oil Company – slide 27
    Operating Cash Flow Reconciliation: Q408 vs Q407 USD mln (74)% 108 (1,487)*** (1,653) (1,403) 2,246 1,350** 2,331* 40 (144) (786) 602 Q4'07 Net income DD&A increase Difference in Difference in Difference in…
  28. Q4 and 12M Results – Rosneft Oil Company – slide 28
    Capital Expenditures USD mln 12M08 12M07 Q408 Q407 Exploration and production 6,477 4,609 1,800 1,592 Yuganskneftegaz 2,866 2,185 818 710 Vankor 2,433 1,009 718 292 Purneftegaz 491 423 85 163 Severnaya Neft 181 212 37 58…
  29. Q4 and 12M Results – Rosneft Oil Company – slide 29
    Net Debt Reconciliation* USD mln Adjusted net debt to LTM EBITDA ratio decreased to 1.2 as of December 31, 2008 622 26,275 (14,393) 8,779 21,283* -19% Net debt as of December 31, Operating cash flow CAPEX…
  30. Q4 and 12M Results – Rosneft Oil Company – slide 30
    Net Debt Reconciliation* (cont.) USD mln Adjusted net debt to LTM EBITDA ratio decreased to 1.2 as of December 31, 2008 190 2,307 (602) 19,388* 21,283* +9.8% Net debt as of September 30, Operating cash flow CAPEX…
  31. Q4 and 12M Results – Rosneft Oil Company – slide 31
    Net Short-Term Debt Reconciliation: Q4 2008 USD mln 2 (1,481) 2,082 (115) 11,202 1 4,597 3 8,649 (121) 7,014 1 (774) 30-Sep-08 Maturity of ST Maturity of New ST debt, Current portion Changes in cash FX on debt &…
  32. Q4 and 12M Results – Rosneft Oil Company – slide 32
    Major Benefits of Ruble Depreciation Balance sheet Cash flow Depreciation of RUB-denominated debt and Increase in Operating cash flow due to liabilities: decrease in total debt, decrease in depreciation of RUB-denominated expenses…
  33. Q4 and 12M Results – Rosneft Oil Company – slide 33
    2009 Outlook Prudent Business Plan USD 41 Urals, 35 RUB/USD Cost control Investments prioritized Free cash flow generation Off to a good start Currency move compensating for oil price Costs lower Taxes normalized (export…
  34. Q4 and 12M Results – Rosneft Oil Company – slide 34
    Rosneft Q4 and 12M08 US GAAP Financial Results Appendix 35
  35. Q4 and 12M Results – Rosneft Oil Company – slide 35
    Adjustments to Net Income and EBITDA USD mln 2008 2007 Q408 Q407 Net income 11,120 12,862 775 2,976 Asset impairment and interest swap result 285 14 256 14 Effect from the income tax rate change (956) (956) YNG tax penalties and…
  36. Q4 and 12M Results – Rosneft Oil Company – slide 36
    Confirming Reserves Leadership 2008 SEC Proved Reserves of Crude Oil (mln bbl) 2008 SEC Proved Reserves of Oil and Gas (mln boe) Rosneft (SPE) 17,694 Rosneft (SPE) 22,307 Rosneft 13,275 Petrochina* 21,225 Petrochina* 11,706 Exxon…
  37. Q4 and 12M Results – Rosneft Oil Company – slide 37
    Best in Class Transparency, IR Effort Consistently enhancing disclosure IPO and bond Quarterly US GAAP, Investor presentations, New website prospectus MD&A conference calls Recent awards S&P Transparency & Disclosure IR…
  38. Q4 and 12M Results – Rosneft Oil Company – slide 38
    Improving Credit Ratings and Reducing Weighted Average Cost of Borrowing Improving Credit Ratings Weighted Average Cost of Borrowing 8% Baa1 Baa1 7.07% 7% Baa2 Baa2 6.06% Investment 6% 5.38% - - 2.68% 0.74% grade 5% 0.78% -…
  39. Q4 and 12M Results – Rosneft Oil Company – slide 39
    Reduction of Net Debt Net debt, USD mln Net debt to LTM EBITDA 1.82 26,275 23,575 21,436 21,283 20,302* 1.35 19,388 1.24 1.19* 1.03 0.88 31-Dec-07 31-Mar-08 30-Jun-08 30-Sep-08 31-Dec-08 31-Dec-08 31-Dec-07…
  40. Q4 and 12M Results – Rosneft Oil Company – slide 40
    Debt Repayment Profile for 2009* USD bln 4.24 Total repayment in 2009 USD 8.65 bln 2.27 1.75 1.77 0.59 0.59 0.89 1.97 1.16 1.18 Q1 Q2 Q3 Q4 Foreign banks Russian banks and companies * The calculation is based…
  41. Q4 and 12M Results – Rosneft Oil Company – slide 41
    Export Duty Lag Effect USD/bbl Legislative duty -- USD 58.0 per bbl in Q4'08 100 Actual duty (3 one-off changes) -- USD 38.8 per bbl in Q4'08 90 Normalized duty -- USD 22.7 per bbl in Q4'08 Urals price -- USD 54.1 per bbl in Q4'08…
  42. Q4 and 12M Results – Rosneft Oil Company – slide 42
    Net Revenue of an Oil Exporter in 2008 USD/bbl 140 120 49.9 10.5 48.2 22.0 100 48.5 38.2 80 33.5 6.7 27.3 22.5 19.2 34.2 26.0 26.4 60 3.0 21.1 24.0 13.3 18.2 20,0 6.4 17.7 9.1 40 67.8 67.8 54.4 54.4 6.5 50.9 45.6…
  43. Q4 and 12M Results – Rosneft Oil Company – slide 43
    Petroleum Product Prices in 2008 (Rosneft Refineries)* RUB/t 25 000 20 000 15 000 10 000 5 000 0 January February March April May June July August September October November December Straight-run gasoline…
  44. Q4 and 12M Results – Rosneft Oil Company – slide 44
    Gas Production Reconciliation: 2008 vs 2007 mcm Production decrease mainly at Purneftegaz 1,202 fields to reduce flaring 14,503 Old (3,276) assets 862 35 22 328 12,377 (15) (82) Total 11,187 'Old' assets New assets…

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