2015 Financial Results (IFRS) Member of the Board of Senior Vice-President, Directors Finance Vice-President, Strategic Development Leonid Fedun Alexander Matytsyn Moscow, April 2016
Limited Sensitivity to Oil Price Fluctuations Theoretical net price, /bbl (2015) Actual average net price, /bbl 100 Urals oil price per bbl MET Government take 80 Export duty Net price* Net price** 70 60 53 40 37 20…
Tax Environment in 2015 Crude oil MET base rate, RUB/tonne Crude oil export duty rate MET was increased Oil export duty was decreased Oil products export duty rate Excise taxes, RUB/tonne ( % crude oil export duty rate)…
Highlights for 2015 Oil production at record high over 100 mln tonnes New exploration frontier: East Siberia (Vostochno-Taimyrsky license block) Iraq (West Qurna-2): 3 bln compensation; production exceeded 10 mln tonnes ompletion…
Key Performance Indicators 2015 2014 Hydrocarbon production, mln boe 868 844 2.8% including crude oil and natural gas liquids produced, mln bbl 749 727 3.1% including West Qurna-2, mln bbl 73.6 41.7 76% Refined products…
Upstream - Efficient Growth Hydrocarbon production, mln boe Crude oil and natural gas liquids produced in Russia, mln bbl 483 465 314 292 211 Net price at 50/bbl, tax regime 2015: 1. Standard tax regime 2. Vinogrodova 3.…
Russian Downstream Timely Modernization In 2015 LUKOIL Completed Large Oil Refining Projects LUKOIL oil product output structure in Perm Russia* 100% Delayed coking Capacity: 2.1 mln tonnes/year 80% Nizhny Novgorod 74% Catalytic…
International Downstream Vertical Integration Advantages International Downstream EBITDA*, RUB bln Residue Hydrocracking in Burgas was launched on May 20, 2015 67.5 Burgas Residue hydrocracking Capacity 2.5 mln…
Benchmarking Against International Peers 16.2% ROACE Income*/EV 8.2% 7.9% 3.6% 4.6% 2.5% 3.8% 1.9% 2.3/% 2.3% -3.5% -4.4% -4.5% -5.5% Free cash flow EV/EBITDA Source: International companies financial statements *…
RUB bln , , Adjusted* , EBITDA 2014 Adjustment* 2014 EBITDA 2014 * Adjusted for reserve on impairment of assets Net revenues ** Excise taxes ** Revenues minus Cost of purchased crude oil, gas and products and…
RUB bln Adjusted* profit for the year 2014 Adjustment* 2014 * Adjusted for reserve on impairment of assets Profit for the year 2014 Depreciation, depletion and amortization EBITDA Profit for the Year…
Cash Flow Reconciliation , , RUB bln * Net of cash disposed 14
Flexible Capital Expenditure Program CAPEX* CAPEX benchmarking RUB bln Production +3% Production +3% /boe bln 700 20 50 Other 18 45 600 16 40 Downstream 500 -37% 14 35 12 30 400 Upstream 10 25 300 8 20 40% 200 6…
Effective Cost Control LUKOIL lifting costs in Russia Lifting costs benchmarking /boe 5.6 /boe 5.1 5.0 5.0 3.6 Source: International companies financial statements LUKOIL 2011-2013 GAAP, 2014-2015 IFRS Effective cost…
Robust Financial Position Net debt to EBITDA S&P credit ratings 3.00 2008 Feb 2016 2.54 2.50 ExxonMobil AAA AAA 2.00 Chevron AA AA- Total AA AA- 1.50 Shell AA+ A+ Investment 1.00 0.73 BP AA A 0.66 0.50 rating 0.50…
Environmental Safety is a Top Priority Cooperation agreement with WWF signed in April 2015 The agreement provides for bilateral consultations, working meetings, exchange of information and data regarding implementation of…
Summary Robust financial results despite volatile global commodity and financial markets Delivered positive free cash flow RUB 248 bln Production at record high: Crude oil more than 100 mln tonnes Gas more than 20 bln m3…
Transition to IFRS Moscow, April 2016
Transition to IFRS Principal factors that affect our financial statements significantly with the transitions to IFRS: 1. Change of functional currency 2. Revaluation of property, plant and equipment 3. Impairment of assets 4.…
Reconciliation of Profit for the Year and EBITDA under US GAAP and IFRS for 2014 RUB bln Profit for the Year EBITDA US GAAP* 182 614 Adjustments: Changes in assesment and accounting of translation differences 181 181 Difference…
Company Expectations for 2016 Member of the Board of Senior Vice-President, Directors Finance Vice-President, Strategic Development Leonid Fedun Alexander Matytsyn Moscow, April 2016
Global Oil Market Balance Will Improve in the Second Half of 2016 Consensus forecast of changes in global oil demand (y/y), Global oil supply and demand balance, mmbd mmbd 2.5 2,5 3.0 3,0 2.0 2,0 2.5 2,5 Surplus 2.0 2,0 1.7…
We Expect US Oil Production Decline to Continue The number of active drilling rigs and oil production Value of the credit lines available to US E&P companies*, in the USA bln 12 Mbd Thousand units 1,8 70 60 -20% 10 1,5 50…
The Potential for Oil Supply Increase is Limited in the Medium Term Global upstream investment, bln OPEC spare capacity, mmbd 1,000 900 800 -20% Effective spare 700 capacity based on -20% the max. level of 600 production in…
Operational Guidance for 2016 Capital expenditures RUB bln bln Other Ruble-denominated CAPEX for 2016 is expected to be flat y-o-y, CAPEX in dollar terms is expected to decrease by 20-25% y-o-y Oil production is expected…
Key Projects Development in 2016 Commissioning of Pyakyakhinskoye field Commissioning of V. Filanovsky field Progress of the Yaregskoye field development Progress of the Denisovskaya Depression development Expanding…
Pyakyakhinskoye Field Start of Production VOSTOCHNO-MESSOYAKHSKY Gazprom Neft-Razvitie Start-up of the first stage 2016 CS YAMBURGSKAYA NAKHODKINSKOYE PYAKYAHINSKY YUZHNO- FIELD Facilities progress: MESSOYAKHSKOYE VANKOR…
V.Filanovsky Field Start of Production Start-up of the first stage 2016 2015 highlights: Commissioning of the PZhM-1 accommodation module platform, offshore pipeline sections, pipeline to Stavrolen processing plant, pipeline from…
Yaregskoye Oil Field Development Yaregskoye oilfield is one of the most efficient LUKOIL projects Company will maintain a high production growth rate on the field Current activities: 25 production facilities under…
Denisovskaya Depression - Development Production potential of Denissovskaya depression was Vostochno-Lambeyshorskoe confirmed by Vostochno-Lambeyshorskoe (2011), Bayandynskoe (2008), Yuzhno-Bayandynskoe (2014) and Alabushina…
Cooperation with Bashneft in Timan-Pechora Varandey oil export terminal LUKOIL and Bashneft work closely in Timan-Pechora Trebs and Titov field (Joint venture OOO Bashneft-Polyus, LUKOIL 25.1%) delivered high production in…
First Stage of Exploration Activities at the Vostochno- Taimyrsky License Block in the Krasnoyarsk Region Ahead of Schedule Vostochno-Taimyrsky block LUKOIL has begun the first stage of exploration activities at the…
Vacuum Gas Oil Hydrocracking (Volgograd) Launch Launch - 2016 Composition: Hydrocracking unit 3.5 mln tonnes / year Hydrogen production unit Sulphur recovery unit Infrastructure facilities Main effects: +1.9 mln tonnes…
Sustainable Development in the Interest of Shareholders Market environment is expected to improve in 2016 LUKOIL can generate positive free cash flow without leverage even under a conservative scenario (30/80) due to strict…
Key Targets for 2016 Delivery of a positive free cash flow under 30/bbl oil price and 80 RUB/ scenario Maintaining competitive dividends Investment program optimization and operating costs reduction Launch of priority upstream…
Loading...
