Rosneft Oil Company IFRS Results Q1 2020 May 15, 2020
Inclusive Approach* to Combat COVID-19 Concern for people's well-being is the Companys top priority Health and safety Regular testing 5.6 mln personal protective equipment, 2.9 mln liters of disinfectant, over 455,000 liters of…
COVID-19 Impact on Crude Oil and Petroleum Products Demand Oil demand in Europe Main petroleum products demand in Europe 15 50 mmbd mmt gasoline jet fuel 40 diesel 2019 fuel oil 30 10 -28% -22% 20 10 5 0 Jan-20 Feb-20…
Key Events Rosneft BOD recommended record high dividends 1 for 2019 Positive free cash flow generation amid sharp oil 2 price drop Successful launch of the open market share 3 buyback program OPEC+ agreement on record…
Best-positioned to New Realities Operations Financials Leadership in lifting costs Flexible CAPEX program Technological capabilities for managing production Cost control Successful experience of rapid Ability to generate cash…
Navigating OPEC+ Environment Crude oil production in Russia (2020) Main terms of the OPEC+ Agreement: 6 mmbd 11 Oil production in Russia with limitations (mmbd): stage 1 (May-Jun. 2020) 8.5 stage 2 (Jul.-Dec. 2020) 9.0 Stage 2 stage…
Rosnefts Advantages in Managing Production Average operating well stock1 Share of wells equipped with ESP Companys own (2019) units* capacities 56.0 56 th. wells average operating well stock 28.3 267 drilling rigs 22.9 18.8 72%…
Successful Experience of Rapid Production Buildup Production recovery after easing OPEC+ restrictions Yugansk reaching record high daily production after in 2018 lifting restrictions on oil intake in 2019 4.9 mmbd 6.8 2.0 mmbd…
Ensuring Timely Launch of New Large Projects Current status Construction of key facilities is at the final stage: installation of core process equipment of the Vostochno-Urengoiskiy LA gas and gas condensate treatment unit Rospan…
Gas Business Gas production (OPEC+ impact is limited by the amount of associated gas) The share of gas the most environmental friendly fuel in total hydrocarbon production of the Company 200 mmcmd is c.19% (flat YoY). Its further…
Gas Business is Resistant to Volatile Prices at Global Markets Domestic and export netback from Novy Urengoy Starting 2020 domestic gas netbacks have been more efficient compared to export deliveries at Rub/mcm spot prices. Forward…
Refining Refining margins Refining economics in Q1 2020 1 1 Russia Europe /bbl Significant refining margin increase in Russia during Q1 2020 was mainly caused by positive 9.23 impact of macro environment: sharp crude oil price…
Focus on Distribution Channels Development Netbacks of the main crude oil marketing channels Crude oil marketing breakdown Export, Asia Export, Europe mmt Refining in Russia Domestic market . 450 /t 60.0 67.1 63.4 400 350…
Beneficial Petroleum Products Export Structure Petroleum products export to non-CIS countries Q1 2020 demand for main petroleum products1 mmt 15 10% 3% Diesel oil Motor gasoline Kerosene 0% 10 Fuel oil 28% 28% 30% -10% 33% 30% 5…
Financial Results 19
Key Financial Indicators 219 Rub bn Free cash flow -9.1 bn Reduction of debt and trading liabilities 354 Rub bn Record high dividends for 2019 20
EBITDA and Net Income Dynamics EBITDA Q4 2019 vs. Q1 2020 Net income Q4 2019 vs. Q1 2020 Net income Q4 2019 488 Rub bn attr. to shareholders Q4 2019 158 Rub bn Exchange rate 29 Minorities 21 Tax maneuver completion (54) Q4 2019…
Efficient Cost Control Lifting costs Refining costs in Russia Rub/boe Quarter 12M average % YoY Rub/bbl Quarter 12M average % YoY 198 201 213 220 201 196 191 191 195 203 183 181 23.8% 8.9% 5.4% 5.7% 6.1% 4.1% 2.3% -2.1%…
CAPEX CAPEX evolution Rub trln Following negative macro environment previous and production cuts the CAPEX 0.92 0.94 range program was optimized by 20% 0.85 reviesed The program still allows for fast project development recovery…
Strong Free Cash Flow Free cash flow calculation Crude oil price and free cash flow dynamics, LTM Net cash provided Rub bn by operating activities 341 4.50 4.47 Reimbursement of 4.25 prepayments received (historical FX rate) 79…
EBITDA and Net Income Dynamics EBITDA Q1 2019 vs. Q1 2020 Net income Q1 2019 vs. Q1 2020 Q1 2019 548 Rub bn Net income Rub bn attr. to shareholders Q1 2019 131 Exchange rate (1) Minorities 25 Tax maneuver completion (42) Q1…
Calculation of Adjusted OCF Profit and Loss Statement Cash Flow Statement Q1 2020, Q1 2020, Indicator Indicator bn bn (1.8) Net income 1 1 Revenue, incl. 27.6 Adjustments to reconcile net income to 5.3 2 Reimbursement of…
Fiscal Support During Crude Oil Price Fall Main rental payments in the price of a barrel of oil produced in Russia /bbl Export duty MET Gross Upstream margin (excluding costs) 14.7 15.1 16.2 13.8 9.2 10 15 20 25…
Variance Analysis Q1 2020 EBITDA and net income sensitivity to +/- 10% Q1 2020 EBITDA and net income sensitivity to +/- change in Urals price 10% change in Rub/ exchange rate Rub bn Rub bn EBITDA EBITDA (70) 70 (64) 64 Net…
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