9M 2022 HYDROCARBON PRODUCTION
INCREASED BY 2.2% YOY TO 4.97 MLN BOE PER DAY
9M 2022 CRUDE OIL SALES IN NON-CIS
COUNTRIES INCREASED BY 4.8% YOY TO 77.3 MLN TONNES
9M 2022 EBITDA INCREASED BY 22% TO A
RECORD NINE-MONTH HIGHOF RUB 2,014 BLN
FINANCIAL DEBT AND PREPAYMENTS DECREASED BY
17% COMPARED TO THE BEGINNING OF THE YEAR
Rosneft Oil Company releases 9M 2022 results
prepared in accordance with International Financial Reporting
RUB bln (except %)
Revenues and equity share in profits of associates and
USD bln* (except %)
Revenues and equity share in profits of associates and
* Calculations based on average monthly
Central Bank of Russia exchange rates.
Commenting on the Company’s 9M 2022
results, Rosneft’s Chairman of the Management Board and Chief
Executive Officer Igor Sechin said:
"In 3Q 2022, Rosneft continued to be
negatively affected by external factors and illegal restrictions,
including the transfer of the Company’s German assets to external
management of the German Federal Network Agency in September.
However, thanks to the successful management
efforts aimed at maintaining business efficiency, the Company made a
number of notable improvements in its operating and financial
performance in the reporting period.
As a result, in the first nine months of 2022 the
Company increased hydrocarbon production and successfully optimized
distribution channels: oil supplies to Asia grew by about a third and
fully compensated for the decline in supplies to European buyers.
Rosneft’s EBITDA reached a record nine-month high, exceeding
RUB 2 trln, while debt and trade obligations decreased by
17% as compared to the beginning of the year.
Strong financial results supported higher capital
expenditures. Projects implemented by the Company, including the
flagship Vostok Oil project, will facilitate meeting the growing
global energy demand. I would like to note that in September 2022,
despite the lack of funding from our partner, we launched the major
Kharampurneftegaz gas project right on time, which allowed for the
increase in the Company's production by 11 bln cubic meters
Concern for the shareholders’ interests is
traditionally one of the key priorities for the Company. On November
11, Rosneft’s Board of Directors recommended that the General
Shareholder Meeting should resolve to pay interim dividends in the
amount of RUB 20.39 per share.1"
Exploration and production
9M 2022 hydrocarbon production reached
4.97 mln boe per day, up by 2.2% YoY2. At the
same time, 3Q 2022 average daily hydrocarbon production
increased to 5.22 mln boe, which is the highest result for
the last 10 quarters2.
9M 2022 liquids production amounted to
3.81 mln bbl per day, remaining at the level of 9M 20212.
During 9M 2022, the Company's share in total production of
liquid hydrocarbons at major new projects launched since 2016
amounted to 546 th. bbl per day, which is 7.5% higher YoY.
The share of these projects in the total production of liquid
hydrocarbons reached 14.3%.
9M 2022 gas production reached 1.16 mln boe
per day, up by 10.6% YoY2. The growth was mainly due to an
increase in natural gas production at the Rospan project, as well as
the launch of the Senoman Kharampurneftegaz project in
September 2022. In the reporting period, the share of gas in
hydrocarbon production was 23%.
Vostok Oil project
The flagship Vostok Oil project has been executed
on schedule. In 9M 2022, the Company completed 2.2 th. line km
of 2D seismic surveys and 2.0 th. sq. km of 3D seismic
surveys, drilled 5 exploration wells and completed construction
of 2 wells, with 7 wells being tested. The results of
exploratory wells testing at the Zapadno-Irkinsky area and the
Payakhskoye field, in combination with the conducted seismic surveys,
make it possible to increase the project resource base from 6.2 to
6.5 bln tonnes.
As part of the pilot work program, development
drilling at the Payakhsky cluster, as well as construction and
development of an oil loading terminal in the Sever Bay port, the
main oil transportation system and expansion of the port
infrastructure are underway.
In 3Q 2022, the Company completed the
construction of the Suzun-Vankor interfield gas pipeline with a gas
pumping capacity of 2.2 bln cubic meters per year and
embarked upon a comprehensive testing of gas transportation system
facilities. The implementation of the gas program at the Suzunskoye
field is an important step towards reducing the carbon footprint of
the Vostok Oil project.
Refining and marketing
In 9M 2022, the Company processed
71.0 mln tonnes of oil. 3Q 2022 refining volume grew
to 25.2 mln tonnes, including 23.3 mln tonnes
processed in Russia. At the end of 9M 2022, oil refining depth
at Russian refining assets increased to 76.4%, while light oil
product yield was up to 57.2%.
9M 2022 oil sales volume increased by 3.3%
YoY to 86.9 mln tonnes. At the same time, thanks to the
successful optimization of distribution channels, 77.3 mln tonnes
were sold in non-CIS countries, up by 4.8% YoY. Oil deliveries to
Asian buyers over the reporting period grew by about a third to
52.4 mln tonnes. In 3Q 2022, the share of Asian
deliveries in the non-CIS oil sales reached a record-high 77%.
In 9M 2022, domestic petroleum product sales
amounted to 31.1 mln tonnes, a 6.5% increase YoY.
The operating indicators dynamics as well as the
prevailing price environment allowed the Company to increase its
revenue3 by 15.7% to RUB 7,202 bln. At the same
time, EBITDA increased by 21.8% YoY and reached a record nine-month
high of RUB 2,014 bln. EBITDA margin also rose to an
all-time high of 28.0%.
9M 2022 net income attributable to
shareholders amounted to RUB 591 bln. The net income
dynamics was largely due to the influence of non-monetary factors. In
3Q 2022, the most significant negative impact on income came
from the transfer of the Company’s assets in Germany to external
management of the Federal Network Agency, which resulted in the
recognition of an additional loss of RUB 56 bln. The
transfer of assets also resulted in a RUB 76 bln reduction
in cash. The total amount of the Company's investments in these
assets exceeded $5 bln, which corresponds to the sum of historical
cost and investments in their expansion and development. The Ñompany
traditionally takes a conservative approach to asset valuation, and
made provisions for the most part of the German assets value in the
9M 2022 capital expenditures amounted to
RUB 822 bln, up by 19.3% YoY. The increase was mainly due
to the planned growth in investments in the Vostok Oil project.
The implementation of measures aimed at
maintaining financial stability allowed for the reduction of the
Company’s prepayments and financial debt by 17% compared to the
beginning of 2022. As of the end of the reporting period, the Net
financial debt/EBITDA ratio amounted 1.1x compared to 1.3x at the
beginning of the year.
The Company continues to implement measures to
achieve sustainable development goals within the framework of the
Rosneft 2030: Reliable Energy and Global Energy Transition
Rosneft consistently develops a system for
managing the integrity of production facilities and equipment in
order to achieve zero accidents by 2030 or earlier. During 9M 2022,
the PSER-1 process safety event rate decreased by over 20% (compared
to the 2021 baseline) due to effective containment loss risk
management, as well as well-timed and prompt response to leaks, among
The Company has developed the Program for the
liquidation of the environmental “legacy”, aimed at achieving
100% of legacy remediation by 2035 or earlier. In 9M 2022,
107 hectares of the legacy polluted land were remediated.
1 It is recommended to allocate at
least 50% of 1H 2022 IFRS net profit for the payment of Rosneft’s
2 In a comparable perimeter
(excluding assets disposed of in 2021)
revenues and equity share in profits of associates and joint ventures
Information and Advertising Department
December 7, 2022