OREANDA-NEWS. Bashneft Group, which comprises JSOC Bashneft, its subsidiaries and affiliates, has published its audited consolidated financial results for the fourth quarter and the twelve months ended December 31, 2012 prepared in accordance with International Financial Reporting Standards (IFRS).

In 2012 Bashneft demonstrated a consistent improvement of its financial results. In 2012 the Group's revenue from sales increased by 9.5% year-on-year and amounted to 532,502 million roubles. EBITDA added 5.2% and reached 98,690 million roubles. In 2012 net income attributable to the shareholders of the parent company totalled 52,088 million roubles, which is 4.5% higher than in 2011.

The growth of revenue, EBITDA and net income was mainly related to an increase in oil production and exports, high prices for oil and petroleum products on the global market, growing sales in premium market segments and a considerable increase in the efficiency of retail sales of petroleum products.

In 2012 Bashneft's capital expenditure added 23.1% (increasing to 30,789 million roubles), primarily in the upstream segment and in the sphere of refinery upgrades. The growth of investments was possible as the net cash flow generated from operating activities demonstrated an 8.4% year-on-year increase in 2012, reaching 71,141 million roubles.

'Despite the introduction of the 60/66 system, which had an overall negative impact on Bashneft, in 2012 the Group successfully continued implementing its development strategy and achieved the best financial results in its history due to an increase in efficiency in all key business areas,' emphasized Bashneft's President Alexander Korsik. 'These results enable us to continue the implementation of large-scale projects in production and refining, providing the foundation for further development of the Group in the interests of all its shareholders.'

In 2012 Bashneft's average daily oil production increased again by 1.9% compared to 2011, hitting a 15-year record high (307.9 thousand bbl/d). In 2012 Bashneft produced 15,437 thousand tonnes of oil and plans to maintain this level at the fields under development in the coming years.

In 2012 refinery throughput remained at the optimal level as Bashneft processed 20,773 thousand tonnes, which is 1.4% less than in 2011; this is related to scheduled repairs at the Ufimsky refinery plant and Novoil. Oil refining depth totalled 84.9%, while the share of light products amounted to 59.7%.

In 2012 sales of petroleum products and petrochemicals fell by 0.5% to 19,251 thousand tonnes. At the same time, Bashneft increased its share in the retail and small wholesale segment, implementing the strategy for developing its marketing channels in order to supply products to consumers. For instance, in 2012 the Group boosted its retail sales by 33.3% to 1,364 thousand tonnes.