Rosneft 2011 EBITDA Reached Historical Peak
OREANDA-NEWS. February 06, 2012. Rosneft was the first among international oil and gas companies to publish full audited consolidated US GAAP financial statements for 2011, reported the press-centre of Rosneft.
Rosneft posted excellent operational and financial results in 2011. Average daily hydrocarbon production (including production by subsidiaries and the Company’s share in production by affiliates) rose by 2.6% to 2,586 th. boe. In Q4 2011, hydrocarbon production hit a record of 2,622 th. boe per day.
Average crude oil output increased to 2,380 th. bpd in 2011, which represents a 2.5% growth year-on-year. The increase reflects higher production at the Vankor and Verkhnechonsk fields in East Siberia and as part of the Sakhalin-1 project. Crude oil production amounted to 2,396 th. bpd in Q4 2011.
Marketable gas production in 2011 increased by 3.6% year-on-year to 12.79 bcm thanks to higher gas production at Yuganskneftegaz, Samaraneftegaz and Vankorneft fields. In Q4 2011, marketable gas output grew by 17.7% quarter-on-quarter to 3.53 bcm mainly due to the launch of a booster station at the Priobskoye field of Yuganskneftegaz in November 2011.
Petroleum product output totalled 55.4 mln t in 2011, which is an increase of 15.6% year-on-year. The growth reflects acquisition of a stake in Ruhr Oel GmbH in May 2011. In Q4 2011, petroleum product output was 15.21 mln t, up 1.5% quarter-on-quarter.
Rosneft’s revenue amounted to USD 92.0 billion in 2011, which represents a 46% increase year-on-year. The increase resulted from higher crude oil and petroleum product prices as well as from higher hydrocarbon production and refinery throughput. In Q4 2011, the Company’s revenue was USD 24.0 billion, a drop of 3% from the previous quarter. The reduction was caused by lower global crude oil and petroleum product prices and lower sales volumes.
In 2011, Rosneft’s EBITDA increased by 15% year-on-year, reaching all-time high of USD 22.0 billion. The increase was tempered by various external factors, including rise of transportation tariffs, strengthening of the rouble and increase in the tax burden particularly due to the expiration of MET and export duty holidays for Vankor crude.
In Q4 2011, EBITDA decreased by 10.0% quarter-on-quarter. The decrease was primarily attributable to the end of Vankor MET holidays (less USD 315 million), lower global crude oil and petroleum product prices (less USD 419 million), expediting of the Company’s exploration program (less USD 160 million), increase in product inventories. The negative impact of these factors was partly offset by the change in the export duty calculation formula for crude oil and petroleum products as well as by rouble depreciation against the dollar.
Cash flow from operations in Q4 2011 was up 22% totalling USD 3,505 mln as compared to USD 2,864 mln in Q3. The increase reflects reduction in accounts payable and lower income tax.
The Company’s net income reached USD 12.45 bln in 2011, which is 19.7% higher year-on-year. Q4 2011 net income was USD 2.99 bln.
Commenting on the results in 2011, Rosneft President Eduard Khudainatov said:
“In 2011 Rosneft progressed to a new stage in its development and produced record volumes of oil. The Company’s profit figures also reached an absolute historical high. Throughout 2011, the Company fully upheld its social responsibility, implementing a number of important social initiatives and contributing over 1.5 trillion rubles to federal and regional budgets.
The steady increase in production confirms that Rosneft has chosen the right strategy as it focuses on developing new production regions. In 2011 we concluded an unprecedented strategic agreement with ExxonMobil and have already begun practical implementation of agreements to explore the rich resource base of the Russian Arctic and Black Sea shelves.
In 2011, as part of a large-scale programme to upgrade the Company’s refineries, Rosneft completed construction and modernisation work at 6 units with total capacity of 6 million tonnes. This included such significant facilities as a new delayed coking unit at the Komsomolsk refinery and a hydrotreatment unit at the Achinsk refinery. Investment in the refinery modernisation programme in 2011 totalled USD 3.1 billion. In 2012, the Company plans to invest a further USD 4.5 billion in this area. From this year’s results, we can confidently say that we have made significant progress in our upgrade programme.
Increasing corporate governance standards and transparency at Rosneft has been and will remain an important priority for me personally and for the whole management team. We continue to work daily to boost the quality of our information disclosure and investor relations. I am pleased to say that our efforts have been recently recognised – Rosneft has been named the winner of the Best Financial Disclosure award in the Russia category by the influential global publication World Finance.
In 2012 the Company will continue efforts to realise its growth potential and boost capitalisation. The primary focus will be on our offshore projects, monetisation of our gas reserves, development of our refining operations and optimisation of our commercial, sales and marketing efforts. We will continue to work for the benefit of our shareholders.”
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