In 2015 Rosneft revenue amounted to RUB 5,150 billion ($86.9 billion), declining by 6.4% compared to 2014.
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Despite deteriorating market environment Rosneft increased high-margin sales volumes of crude oil to eastern direction (+18.5%), increased sales volumes of gas (+3.8%) and petroleum and petrochemical products (+1%). Rosneft managed to reduce the negative impact of decline in crude oil prices by 16.3% in RUB terms and 47.3% in $terms.
In Q4 2015 revenue amounted to RUB 1,196 billion ($18.6 billion), declining by 7.7% compared to Q3 2015 due to decline in oil prices in RUB terms and decrease in sales volumes of petroleum products.
Rosneft is fully complied with obligations under long-term supply oil agreements and over-fulfills obligations for petroleum products sales in domestic market. The output of Euro 4/5 motor fuels in Russia increased by 30% compared to 2014.
Increased control over expenses resulted in growth in earnings before interests, tax and depreciation (EBITDA) by 17.8% to RUB 1,245 billion ($20.8 billion) in 2015 compared to 2014. Higher EBITDA y-o-y was achieved despite of negative impact from tax maneuver (RUB -71 billion) and lower oil prices, which was just partially offset by RUB/$exchange rate changes.
Control over expenses, effective management of sales structure, improvement in quality of petroleum products basket and decrease in a negative effect of export duty lag contributed to EBITDA growth.
Thanks to management efforts upstream operating expenses per unit in 2015 amounted to 159 RUB/boe ($2.6/boe) which is the lowest cost in industry.
Output of light petroleum products increased from 54.8% up to 55.3% in 2015 and oil refining efficiency increased from 65.3% to 66.5% in 2015 due to the increase in vacuum gasoil production and optimization of accompanying processes.
EBITDA decreased by 6.4% up to RUB 278 billion ($4.3 billion) in Q4 2015 compared to Q3 2015 due to accelerating decrease in oil prices (-11.1% in RUB terms). In 2015 the level of EBITDA margin increased up to 24.2% thanks to decrease in negative effect of export duty lag.
In terms of challenging macroeconomic environment net income amounted to RUB 355 billion, increasing by 2.0% compared to 2014 enhancing the base for dividend payment.
In 2015 capital expenses amounted to RUB 5951 billion ($9.7 billion) which is 11.6% up compared to 2014. Increase in capital expenses was due to increased investments in Brownfields and Greenfields to ensure high rate of production in the future.
Given the volatility of the external environment and limited sources of funding the company optimized investment program of 2015 keeping the strategic goals unchanged and preventing the decline of the total hydrocarbon production level.
Upstream capital expenses per unit amounted to 261 RUB/boe ($4.3/boe ) in 2015.
In Q4 2015 capital expenses seasonal increase amounted to 32.9% up to RUB 186 billion ($2.8 billion) compared to Q3 2015. ■