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2Q and H1 2017 – Rosneft Oil Company

Rosneft Oil Company · Aug 8, 2017 · 36 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. 2Q and H1 2017 – Rosneft Oil Company – slide 1
    Rosneft Oil Company IFRS Results Q2 and H1 2017 August 8, 2017
  2. 2Q and H1 2017 – Rosneft Oil Company – slide 2
    Overview of Key Developments Macroeconomic environment1 Indicator Q2 2017 Q1 2017 % H1 2017 H1 2016 % Urals, /bbl 48.8 52.3 (6.5)% 50.5 38.0 33.0% Urals, 000 RUB/bbl 2.79 3.07 (9.2)% 2.93 2.67 9.8% Naphtha, 000 RUB/ton 24.1 27.8…
  3. 2Q and H1 2017 – Rosneft Oil Company – slide 3
    Key Operating Highlights Indicator Q2 2017 Q1 2017 % H1 2017 H1 2016 % Hydrocarbon production, incl. 5,703 5,785 (1.4)% 5,744 5,212 10.2% kboed Crude oil and NGL, 4,566 4,620 (1.2)% 4,593 4,100 12.0% kboed Gas, 1,137 1,165…
  4. 2Q and H1 2017 – Rosneft Oil Company – slide 4
    Key Financial Highlights Indicator Q2 2017 Q1 2017 % H1 2017 H1 2016 % EBITDA, RUB bn 306 333 (8.1)% 639 621 2.9% Net income, RUB bn 68 13 100% 81 101 (19.8)% Attributable to Rosneft shareholders Adjusted net income1, RUB bn 95 112…
  5. 2Q and H1 2017 – Rosneft Oil Company – slide 5
    High Potential of the East Arctic Offshore ARCTIC OCEAN Chukchi 9 Companys license blocks are located on the East Severo-Vrangelevsky-2 Sea Arctic shelf East Siberian 9.5 bln t of crude oil and 8.7 tcm of gas resource…
  6. 2Q and H1 2017 – Rosneft Oil Company – slide 6
    The Erginsky Block On July 12, 2017 Rosneft won the license on the Erginsky block the largest license area from the unallocated fund in Russia Erginsky The acquisition price amounted to RUB 20.1 bn 1+2 reserves are estimated at…
  7. 2Q and H1 2017 – Rosneft Oil Company – slide 7
    Signing Long-Term Contracts on Supplies of Pipe Products On June 2, 2017 at the XXI St. Petersburg International Economic Forum Rosneft signed long-term contracts with TMK and ChelPipe on pipes supplies Timely and robust supplies of…
  8. 2Q and H1 2017 – Rosneft Oil Company – slide 8
    Operating Results
  9. 2Q and H1 2017 – Rosneft Oil Company – slide 9
    Development Drilling Development drilling footage Key achievements in H1 2017 th. m 22% growth in development drilling footage (in H1 2017 y- o-y) with in-house service share at c. 60% Commissioning of new wells increased by 15%,…
  10. 2Q and H1 2017 – Rosneft Oil Company – slide 10
    Hydrocarbon Production kboed +10.2% 450 8 (17) 30 27 29 (13) (5) (17) (13) 24 29 5,744 5,212 +82 kboed (+1.6%) H1 2016 Yugansk Samara Samotlor Orenburg Slavneft Offshore projects Other International Messoyakha Vancor…
  11. 2Q and H1 2017 – Rosneft Oil Company – slide 11
    Greenfields Development Status: Suzun and E. Messoyakha Suzunskoye field East Messoyakhskoe field1 In September 2016 the Company started the On September 21, 2016 the northernmost onshore comprehensive testing of the oil production,…
  12. 2Q and H1 2017 – Rosneft Oil Company – slide 12
    Progress in Key Projects: Tagul Indicator Value 3 reserves (PRMS) 435 mmtoe / 3,102 mmboe Commissioning year 2018 Production plateau 4.5 mmtpa Target plateau year 2022+ As part of a pilot the first startup complex of the oil…
  13. 2Q and H1 2017 – Rosneft Oil Company – slide 13
    Progress in Key Projects: Yurubcheno-Tokhomskoe field Indicator Value 3 reserves (PRMS)1 272 mmtoe / 2,078 mmboe Commissioning year 2017 Production plateau 5 mmtpa Target plateau year 2019 As part of a pilot the 1st mmt of oil…
  14. 2Q and H1 2017 – Rosneft Oil Company – slide 14
    Progress in Key Projects: Rospan The project provides the major contribution to the Company production growth by 2020 Indicator Value 0.9 tcm of gas +47% 3 reserves (PRMS) 160 mmt of oil and 6.22 condensate 4.24 in perspective:…
  15. 2Q and H1 2017 – Rosneft Oil Company – slide 15
    Gas Business: organic production growth and efficient monetization Key achievements in H1 2017 Gas production 2.9% production growth on the back of: bcm +0.97 (+2.9%) Commissioning 2 new wells at the Northern tip of the 33.23 34.20…
  16. 2Q and H1 2017 – Rosneft Oil Company – slide 16
    Refining: efficiency improvement via further operating optimization and modernization Refining and high-quality motor fuels throughput Key achievements in Q2 2017 Refining throughput in Russia Share of gasoline production in…
  17. 2Q and H1 2017 – Rosneft Oil Company – slide 17
    Crude Oil and Petroleum Product Marketing Netbacks of the main crude oil marketing channels Oil marketing structure (Q2 2017) Refining throughput Domestic market Exports Capacity utilization 3% Export netback via marginal…
  18. 2Q and H1 2017 – Rosneft Oil Company – slide 18
    Financial Results
  19. 2Q and H1 2017 – Rosneft Oil Company – slide 19
    Revenue Q2 2017 vs. Q1 2017 RUB bn External factors: Company controlled factors: RUB -99 bn; -7.0% RUB +88 bn; +6.2% (37) (1) 33 (84) 56 4 14 4 1,410 1,399 Q1 2017 Exchange rate Crude oil price Exchange rate effect…
  20. 2Q and H1 2017 – Rosneft Oil Company – slide 20
    Operating Costs Dynamics Lifting costs Refining costs in Russia RUB/boe Bashneft effect Rosneft RUB/bbl Bashneft effect Rosneft LTM average % y-o-y LTM average % y-o-y 185 172 180 180 167 168 168 177 138 164 164 170 163 151 149…
  21. 2Q and H1 2017 – Rosneft Oil Company – slide 21
    EBITDA and Net Income EBITDA Q2 2017 vs. Q1 2017 RUB bn Company controlled and seasonal factors: RUB +16 bn; +4.8% (19) (12) (12) 1 (4) 4 (14) 32 (3) 15 (16) 1 333 External factors: 306 RUB -43 bn; -12.9% Q1 2017 Exchange…
  22. 2Q and H1 2017 – Rosneft Oil Company – slide 22
    CAPEX CAPEX and production H1 2017 CAPEX increase at 32% y-o-y consistent with RUB bn kboed the strategic goals, it was mainly driven by: 1,200 6,000 ongoing development of the major long-term oil and gas production projects 900…
  23. 2Q and H1 2017 – Rosneft Oil Company – slide 23
    Sources and Uses of Cash H1 2017 RUB bn Funds available for debt management (decrease) 235 Assets disposal 367 Operating cash flow 114 71 97 Prepayments under crude oil and petroleum product supply contracts Assets…
  24. 2Q and H1 2017 – Rosneft Oil Company – slide 24
    Free Cash Flow Free cash flow RUB bn Rosneft sustains positive free cash flow generation (2.0 per boe in H1 2017) despite CAPEX growth FY 6M (+32% in H1 2017 y-o-y) and crude oil price fluctuations 302 Rosneft maintains a…
  25. 2Q and H1 2017 – Rosneft Oil Company – slide 25
    Financial Stability Debt and net debt dynamics Debt profile by currency bn1 1.8 1.9 1.8 1.6 1.7 1.6 Foreign currency 1.5 1.5 1.4 1.3 Rubles 1.1 1.0 72.9 0.7 0.7 Total debt 15.5 60.5 41% 59.1 59.6 58.2 Cash & cash…
  26. 2Q and H1 2017 – Rosneft Oil Company – slide 26
    Appendix
  27. 2Q and H1 2017 – Rosneft Oil Company – slide 27
    Revenue H1 2017 vs. H1 2016 RUB bn External factors: RUB +246 bn; +10.8% (1) 284 (14) 34 (33) 7 (14) 744 (478) 2,809 2,280 H1 2016 Exchange rate Crude oil price Export duty lag Tax maneuver Exchange rate Share in…
  28. 2Q and H1 2017 – Rosneft Oil Company – slide 28
    Operating costs 2017 vs. 2016 Lifting costs RUB bn 20,1 5,5 2,6 1,5 Lifting costs increase in H1 2017 was mainly driven by the acquisition of Bashneft assets in October 170.3 2016, growth in electricity costs (increase in tariffs…
  29. 2Q and H1 2017 – Rosneft Oil Company – slide 29
    EBITDA and Net Income EBITDA H1 2017 vs. H1 2016 RUB bn External factors: Company controlled and seasonal factors: RUB -2 bn; -0.3% RUB +20 bn; +3.2% 7 (45) 62 1 (15) (28) (6) (8) 224 (195) 50 (13) (16) 621 639 H1 2016…
  30. 2Q and H1 2017 – Rosneft Oil Company – slide 30
    FX Risk Hedge Q2 2017, RUB bn H1 2017, RUB bn Net of income Net of income Before tax Profit tax Before tax Profit tax tax tax Recognized within other funds and (398) 80 (318) (435) 87 (348) reserves as of the start of the period…
  31. 2Q and H1 2017 – Rosneft Oil Company – slide 31
    Calculation of Adjusted Operating Cash Flow Profit and loss statement Cash flow statement H1 2017, H1 2017, Indicator Indicator bn bn 1 Revenue, incl. 50.1 1.7 Net income 1 Adjustments to reconcile net income to Prepayments…
  32. 2Q and H1 2017 – Rosneft Oil Company – slide 32
    Operating Cash Flow Adjustment Reimbursement of crude oil supplies prepayments (average FX rate) RUB bn RUB 258 bn 73 96 (407) 162 535 204 128 Net cash provided by Prepayments for FX rate change effect Prepayments…
  33. 2Q and H1 2017 – Rosneft Oil Company – slide 33
    Export Duty Lag RUB bn (14) 52 (2) 24 6 (7) 365 348 341 333 327 313 296 294 292 306 287 273 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Normalized EBITDA Actual EBITDA Note: The effect of the time lag in export…
  34. 2Q and H1 2017 – Rosneft Oil Company – slide 34
    Financial Expenses, RUB bn Indicator Q2 2017 Q1 2017 % H1 2017 H1 2016 % 1. Interest accrued1 54 52 3.8% 106 70 51.4% 2. Interest paid 53 44 20.5% 97 71 36.6% 3. Change in interest payable (1-2) 1 8 (87.5)% 9 (1) 4. Interest…
  35. 2Q and H1 2017 – Rosneft Oil Company – slide 35
    EBITDA and Net Income Sensitivity Urals price change RUB/ exchange rate change RUB bn -5 /bbl +5 /bbl RUB bn -2 RUB/ +2 RUB/ EBITDA EBITDA (40) 40 (15) 15 Net Income Net Income (32) 32 (12) 12 Average Urals price in Q2…
  36. 2Q and H1 2017 – Rosneft Oil Company – slide 36
    Questions and Answers

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