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2Q 2018 Investor Presentation – Rosneft Oil Company

Rosneft Oil Company · Aug 7, 2018 · 38 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 2018 Investor Presentation – Rosneft Oil Company – slide 1
    Rosneft Oil Company IFRS Results Q2 2018 August 7, 2018
  2. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 2
    Overview of Key Corporate Developments Macroeconomic Environment1 Indicator Q218 Q118 % H118 H117 % Urals, /bbl 72.5 65.2 11.1% 68.9 50.5 36.3% Urals, 000 Rub/bbl 4.48 3.71 20.7% 4.09 2.93 39.5% Naphtha, 000 Rub/ton 38.52 31.79 21.2%…
  3. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 3
    Key Operational Highlights indicator Q2 2018 Q1 2018 % H1 2018 H1 2017 % Hydrocarbon production, incl. 5,744 5,706 5,708 (0.0)% 5,706 (0.7)% kboed Oil and liquids 4,593 4,604 4,566 0.8% 4,585 (0.2)% kbpd Gas 1,102 1,142…
  4. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 4
    Key Financial Highlights Indicator Q2 2018 Q1 2018 % H1 2018 H1 2017 % EBITDA, Rub bn 565 385 46.8% 950 639 48.7% Net Income, Rub bn 228 81 100% 309 75 100% attributable to Rosneft shareholders Adjusted net income1, Rub bn 257 123…
  5. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 5
    Operating Results
  6. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 6
    OPEC+ Deal Rosneft daily liquids production1 On June 23, 2018 the 4th OPEC and non-OPEC kboed Ministerial Meeting announced a production 4,750 increase by 1 mmbpd starting July 2018 In anticipation of the restrictions easing Rosneft…
  7. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 7
    Development drilling Development drilling footage Key achievements in H1 2018 000 m Increase in development drilling footage by 24% YOY to c. 6 mln m with c. 60% share of in-house service 22% increase in new wells commissioning to…
  8. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 8
    Hydrocarbon Production kboed -0.7% 37 (81) 58 (44) 109 (56) (39) (30) 8 +79 kboed (+1.4%) average daily liquids production growth 5,744 in West and East Siberia 5,706 H1 2017 Yugansk Greenfields in West Other mature…
  9. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 9
    Progress in Key Projects Indicator Yurubcheno-Tokhomskoe field Kondinskoe field 3 reserves (PRMS) 282 mmtoe / 2,156 mmboe1 143 mmtoe / 1,036 mmboe Commissioning year 2017 2017 Production in H1 2018 1.1 mmt 0.5 mmt Production plateau…
  10. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 10
    Progress in Key Greenfields: Tagul Field Indicator Value 3 reserves (PRMS) 447 mmtoe / 3,180 mmboe Commissioning year 2018 Plateau production (year) 4.5 mmtpa (2022+) Tax benefits MET tax break As a part of the pilot project,…
  11. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 11
    Progress in Key Greenfields: Taas-Yuryakh (Srednebotuobinskoye Field, Stage 2) Indicator Value 3 reserves (PRMS) 286 mmtoe / 2,096 mmboe Commissioning year 2018 Plateau production (year) c. 5 mmtpa (2022+) MET1 and export duty tax…
  12. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 12
    Progress in Key Greenfields: Russkoe Field Indicator Value 3 reserves (PRMS) 426 mmtoe / 2,874 mmboe Commissioning year 2018 Plateau production (year) 6.5 mmtpa (2022+) Tax benefits MET tax break1 By the end of Q2 2018, 147 wells…
  13. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 13
    Progress in Key Greenfields: Kuyumba Field1 Indicator Value 3 reserves (PRMS) 282 mmtoe / 2,154 mmboe Commissioning year2 2018 Plateau production (year)2 c. 3 mmtpa (2021+) MET3 and export duty tax Tax benefits breaks During the…
  14. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 14
    Gas Business Key achievements in H1 2018 Gas production bcm A 2.5% gas production driven by a lower APG production -0.87 (-2.5%) at the fields with developing infrastructure, as well as at a 34.20 33.33 number of other assets…
  15. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 15
    Progress Key Projects: Rospan The project provides the major contribution to the Company production growth by 2020 Indicator Value 0.9 tcm of gas, 191 mmt of gas 3 reserves (PRMS) 6.22 6.45 condensate, LPG and oil Potential: 4.24…
  16. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 16
    Brownfields Development: Projects at Sibneftegaz The Company's largest asset in terms of gas production. In H1 2018, production stood at 6.06 bcm Indicator Value 3 PRMS reserves (gas) 514 bcm 2007 (Beregovoy LA) 11.8 12.1 12.6…
  17. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 17
    Greemfileds Development: Kharampur The most significant (after Rospan) project of the Company in terms of gas production growth1 Indicator Value 3 reserves (PRMS), 636 bcm2 gas Gas production plateau: 11 bcmpa3 Phase 1 (Senomanian)…
  18. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 18
    Refining: Further Efficiency Improvement via Units Optimization and Modernization Key refining highlights in Russia Key achievements in Q2 2018 Gasoline production, mmt Diesel production, mmt In the course of Rosneft-2022 strategy…
  19. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 19
    Profit Maximization from Crude Oil Marketing Netbacks for the main crude oil marketing channels Oil marketing breakdown Refining capacity utilization Export netback mmt Refining netback Domestic market netback 58.3 55.4 56.8 400…
  20. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 20
    Financial Results
  21. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 21
    Revenue Q2 vs Q1 2018 Rub bn 22 13 (1) (2) 8 143 160 2,065 1,722 Q1 2018 Exchange rate Prices Exchange rate Share in profits of Number of days in Volumes Others Q2 2018 effect from associates and the period…
  22. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 22
    Operating Costs Dynamics Lifting costs1 Refining costs in Russia1 Rub/boe Quarter 12M average % YOY Rub/boe Quarter 12M average % YOY 191 199 187 189 192 212 185 185 195 180 33.3% 33.3% 168 172 9.1% 11.2% 10.1% 7.9% 3.8%…
  23. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 23
    EBITDA and Net Income EBITDA Q2 vs Q1 2018 Rub bn 2 5 1 52 8 32 (12) (8) (1) (2) 30 73 565 385 External factors: Internal and seasonal factors: Rub +150 bn; +39.0% Rub +30 bn; +7.8% Q1 2018 Exchange rate Prices Share in…
  24. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 24
    CAPEX CAPEX and production H1 2018 CAPEX was in line with Company strategy and Rub bn kboed mainly included: 1,200 6,000 development drilling at mature assets to maintain production levels taking into account the OPEC+ 922 900…
  25. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 25
    Free Cash Flow and Reimbursement of Prepayments Free cash flow Rub bn FY 6M Significant improvement in free cash flow: 3.6 bn in 439 Q2 and 6.1 bn in H1 2018 363 The highest free cash flow growth rates among the global O&G…
  26. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 26
    Industry-leading Free Cash Flow and Net Income Growth Net income Free cash flow bn bn 8.6 7.1 6.4 6.1 5.1 3.8 4.1 3.9 2017 H1 2018 2017 H1 2018 2017 H1 2018 2017 H1 2018 Rosneft Sector average Rosneft Sector average Net…
  27. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 27
    Dividend Policy Payout ratios Dividend payments and oil prices of the largest state controlled companies3 DPS, Rub per share as % of IFRS net income 20 111.3 108.7 120.00 119.50 119.00 118.50 118.00 117.50 Brent, per bbl 117.00…
  28. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 28
    Appendix
  29. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 29
    Revenue H1 2018 vs H1 2017 Rub bn 28 10 38 6 800 96 3,787 2,809 H1 2017 Exchange rate Prices Effect from Share in profits of Volumes Others H1 2018 prepayments associates and JVs reimbursement Positive market…
  30. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 30
    Costs in 2018 vs. 2017 Lifting costs Rub bn 1.7 6.5 2.5 H1 2018 lifting costs growth was mainly driven by higher electricity tariffs, repair and maintenance costs of growing well stock 170.3 181.0 Lower refining cost reduction on…
  31. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 31
    EBITDA and Net Income EBITDA H1 2018 vs H1 2017 Rub bn 40 (4) (10) 35 (10) (5) 18 10 208 (11) (4) 44 950 External factors: Internal and seasonal factors: 639 Rub +267 bn; +41.8% Rub +44 bn; 6.9% H1 2017 Exchange rate Excise…
  32. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 32
    FX Risk Hedge Q2 2018, Rub bn H1 2018, Rub bn Net of income Net of income Before tax Income tax Before tax Income tax tax tax Recognized within other funds and (253) 51 (202) (290) 58 (232) reserves as of the start of the period…
  33. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 33
    Calculation of Adjusted Operating Cash Flow Profit and Loss Statement Cash Flow Statement H1 2018, H1 2018, Indicator Indicator bn bn 5.8 Net income 1 1 Revenue, incl. 64.8 Adjustments to reconcile net income to 7.3 2…
  34. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 34
    Operating Cash Flow Adjustment, H1 2018 Rub bn 43 (80) 71 68 94 (452) 815 619 Reimbursement of crude oil supplies prepayments (average FX rate) 363 Rub 233 bn Net cash provided by Reimbursement of FX rate change…
  35. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 35
    Export Duty Lag Rub bn 6 (7) 15 26 1 32 565 533 371 367 393 384 385 333 356 327 313 306 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Normalized EBITDA Actual EBITDA Note: The effect of the time lag in export duties…
  36. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 36
    Financial Expenses, Rub bn Indicator Q2 2018 Q1 2018 % H1 2018 H1 2017 % 1. Interest accrued1 70 65 7.7% 135 106 27.4% 2. Interest paid2 63 61 3.3% 124 97 27.8% 3. Change in interest payable (1-2) 7 4 75.0% 11 9 22.2% 4. Interest…
  37. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 37
    EBITDA and Net Income Sensitivity Urals price change in Q2 2018 Rub/ exchange rate change in Q2 2018 Rub bn -7.3 /bbl +7.3 /bbl Rub bn -6.2 Rub/ +6.2 Rub/ EBITDA EBITDA -64 64 -69 69 Net Income Net Income -51 51 -55…
  38. 2Q 2018 Investor Presentation – Rosneft Oil Company – slide 38
    Questions and Answers

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