OREANDA-NEWS. Bashneft Group, which comprises JSOC Bashneft, its subsidiaries and affiliates, released its unaudited consolidated financial statements for the third quarter of 2013 and the nine months ended September 30, 2013 prepared in accordance with International Financial Reporting Standards (IFRS)

During the nine months of 2013, the Group's revenue from sales increased by 6.2% year-on-year to 417,054 million roubles due to an increase in sales of oil and petroleum products and a favourable pricing environment. During the period from January through September 2013, adjusted EBITDA increased by 1.1% year-on-year and reached 76,981 million roubles. During the nine months of 2013, the Group's net income excluding minority interest totalled 32,542 million roubles, which is 21.3% less than in the same period in 2012. The decrease in net income was related to reclassification and subsequent revaluation of the Group's financial investments in OJSC Belkamneft. On September 30, 2013 JSOC Bashneft divested OJSC Belkamneft by selling 500 ordinary shares of OJSC Belkamneft (38.46% of its authorized share capital) to a group of private investors for 6,469 million roubles.

In the third quarter of 2013, the Group's revenue from sales amounted to 156,571 million roubles, which is 16.1% higher than in the second quarter of 2013. During the period from July through September 2013, adjusted EBITDA reached its highest quarterly level since 2009 and totalled 32,840 million roubles, having increased by 42.5% quarter-on-quarter. In the third quarter of 2013, net income attributable to the shareholders of the parent company fell by 43.9% quarter-on-quarter to 7,388 million roubles due to the above-mentioned revaluation.

An increase in operating cash flow enabled the Company to reduce the Group's total debt in the form of short-term and long-term borrowings by 24.2% from 105,832 million roubles as of June 30, 2013 to 80,234 million roubles as of September 30, 2013. A year-on-year reduction in the Group's total debt amounted to 37.2% as of September 30, 2013.

During the nine months of 2013, oil production at the Company's fields totalled 11,900 thousand tonnes, which is 3.2% more than last year. During the nine months of 2013, average daily oil production added 3.6% year-on-year, reaching 318.2 thousand bbl/d.

In the third quarter of 2013, Bashneft's average daily oil production amounted to 327.9 thousand bbl/d, demonstrating a 4.2% quarter-on-quarter increase. In the third quarter of 2013, oil production totalled 4,132 thousand tonnes, which is 5.3% more than in the second quarter of 2013.

The considerable increase in oil production in the third quarter of 2013 was related primarily to the start of production at the R. Trebs and A. Titov fields in the Nenets Autonomous District, where the Company produced 120 thousand tonnes of oil in August and September 2013.

The Company continued to maintain the throughput at its refining complex in Ufa at an optimal level: during the period from January through September 2013, Bashneft refined 16,053 thousand tonnes of oil, which is 4.3% more than in the same period in 2012 (15,397 thousand tonnes). In the third quarter of 2013, the Company refined 5,552 thousand tonnes of oil, which is 5.1% more than in the second quarter of 2013. The increase in refining was caused by an increase in oil production in the Republic of Bashkortostan.

During the period from January through September 2013, the output of commercial products totalled 14,771 thousand tonnes, demonstrating a 5.0% year-on-year increase (during the nine months of 2012, this figure amounted to 14,069 thousand tonnes).

During the nine months of 2013, the share of light products amounted to 60.4%, which is 0.6 basis points higher than in 2012 (59.8%). The increase in the share of light products was possible because Bashneft proceeded with its refinery upgrade programme.

During the period from January through September 2013, the share of Euro 4 and Euro 5 gasoline in the total gasoline output increased to 90.6% compared to 65.3% during the nine months of 2012, with the share of Euro 5 gasoline totalling 64.2% during the nine months of 2013. During the period from January through September 2013, the share of Euro 4 and Euro 5 diesel fuel rose to 30.8% compared to 21.8% during the same period in 2012, with the share of Euro 5 diesel fuel amounting to 27.8% of the total output of diesel fuel during the nine months of 2013.