2024 HYDROCARBON PRODUCTION AMOUNTED
TO 255.9 MLN TOE
2024 LIQUID HYDROCARBON PRODUCTION AMOUNTED
TO 184.0 MLN TONS
2024 GAS PRODUCTION TOTALLED 87.5 BCM
2024 EBITDA AMOUNTED TO RUB 3,029 BLN
2024 NET INCOME ATTRIBUTABLE TO ROSNEFT
SHAREHOLDERS AMOUNTED TO RUB 1,084 BLN
2024 FREE CASH FLOW AMOUNTED TO RUB 1,295 BLN
2024 UNIT UPSTREAM COSTS AMOUNTED TO $2.9/BOE
THE TOTAL AMOUNT OF PAID TAXES AND OTHER
PAYMENTS BY THE COMPANY TO THE CONSOLIDATED BUDGET OF THE RUSSIAN
FEDERATION EXCEEDED RUB 6.1 TRLN
Rosneft Oil Company (hereafter, “Rosneft”, and
the “Company”) publishes its results for 12M 2024 prepared in
accordance with International Financial Reporting Standards (IFRS).
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12M
2024
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12M
2023
|
% change
|
|
RUB bln (except for %)
|
Revenues from sales and equity share in profits of associates and
joint ventures
|
10,139
|
9,163
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10.7%
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EBITDA
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3,029
|
3,005
|
0.8%
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Net income attributable to Rosneft shareholders
|
1,084
|
1,267
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(14.4)%
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CAPEX
|
1,442
|
1,297
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11.2%
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Adjusted free cash flow
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1,295
|
1,427
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(9.3)%
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Igor Sechin, Chairman of the Management Board and
Chief Executive Officer of Rosneft, said:
“In the reporting year, the Company operated
against the backdrop of oil production cap under the OPEC+
agreement, increased taxation, the natural monopolies tariff
rises outstripping inflation, incremental anti-terrorist security
costs, growing sanctions pressure, and unprecedented interest rates
increases.
Management focused its efforts on revenue and
EBITDA growth, while maintaining unit upstream costs at less than
$3/boe, which is in line with our strategic objective, as well as on
debt burden reduction. At the end of the year the net financial
debt/EBITDA ratio amounted to less than 1.2x.
Rosneft is the country’s largest taxpayer. In
2024, the total amount of paid taxes and other payments made by the
Company to the consolidated budget of the Russian Federation exceeded
RUB 6,1 trillion1.This is record high both for the Company
and for the whole of the Russian market.
The net income attributable to the Company's
shareholders is lower as compared to the previous year due to the
impact of non-cash factors, the main one being the revaluation of tax
liabilities due to the income tax rate increase to 25% from 2025. In
accordance with IFRS requirements, this resulted in a restatement of
deferred tax with a negative income effect of RUB 0.24 trillion.
However, efficient execution and improved development
parameters of a number of our key projects afforded an opportunity to
dramatically reduce the negative effect of these changes.
The sizable key rate increase exerted additional
pressure on the net income. In particular, the Company's interest
expenses on loans and borrowings increased 1.5 times in 2024. I
should note that the Bank of Russia maintains a very high real
interest rate in the economy: in the last two years, it has been
the highest in the world.
Taking into account our shareholders’ interests
and in full compliance with the dividend policy, in February, the
Company paid an interim dividend of RUB 36.47 per share.
The Company has been paying dividends consecutively since 1999. The
dividend base has remained unchanged since the 2011 dividend, which
ensures transparency and predictability of the dividend amount. I am
pleased to note that in the last year alone the number of our
shareholders increased by almost a third and reached 1.5 million
people.
Taking into account the negative macroeconomic
environment, the Company forcibly adjusts its strategy to sustain its
fundamental value. In 2024, in order to support its stock prices
during the periods of sharp decline, the Company continued its Share
Buyback Program previously approved by the Board of Directors. At the
end of October – beginning of November 2024, when the Russian stock
market hit its local lows, Rosneft successfully bought back
about 2.6 mln of its shares at an average price
of RUB 443.7. The Company used the same mechanism during
2020, when commodity markets suffered a COVID-pandemic related
price crisis. At that time, the Company bought back about 0.76%
of its shares at an average price of RUB 347.5. The current stake
value exceeds the buyback price by more than 1.5õ”.
Operating performance
Exploration and production
FY2024, liquid hydrocarbon production amounted to
184.0 mln tons (3,737 th. bpd) on the back of, primarily, the
production cap in compliance with the decisions of the Russian
Government.
In 2024, the Company's gas production amounted to
87.5 bcm (1,455 th. boepd), maintaining Rosneft’s status as the
largest independent gas producer in Russia. Greenfield projects in
the Yamal-Nenets Autonomous District commissioned in 2022 account for
over a third of the Company's gas production.
As a result, in 2024, the Company's hydrocarbon
production amounted to 255.9 mln toe (5,192 th. boepd).
In 2024, production drilling footage exceeded 12
mln meters. Rosneft commissioned over 3 th. new wells, horizontal
wells accounting for 72% of that amount.
In 2024, Rosneft conducted 1.2 th. linear km of 2D
seismic and 5.3 th. sq. km of 3D seismic onshore Russia. The Company
completed testing of 62 exploratory wells with a success rate of
89%.
In 2024, Rosneft discovered 7 deposits and 97 new
hydrocarbon accumulations to the total of 0.2 bln toe under
the AB1C1+B2C2 categories of the Russian reserve classification due
to the high efficiency of the Company’s exploration activities. As
a result, Rosneft's hydrocarbon reserves under the Russian
classification amounted to 21.5 bln toe (AB1C1+B2C2) at the
end of 2024.
Following an audit under the international PRMS
classification (Petroleum Resources Management System), the Company's
2P hydrocarbon reserves amounted to 11.4 bln toe. The 2P
reserves replacement ratio exceeds 100%.
Vostok Oil Project
As part of the Vostok Oil project, in 2024, the
Company completed 0.7 th. linear km of 2D seismic and 0.6 th. sq. km
of 3D seismic. Rosneft carried out successful testing of 4 wells,
with 1 well being drilled and 3 more wells being tested.
In the reporting year, the project scope expanded
from 52 to 60 license areas, and the resource base under the
Russian classification increased to 7.0 bln tons of crude oil.
The Company continues pilot development of the
Payakhskoye, Ichemminskoye and Baikalovskoye fields: in 2024,
production drilling footage amounted to 92 th. meters, while 11
production wells were completed. Successful drilling and testing of
wells at the Payakhskoye field resulted in transportation of
produced oil to the nearby Suzun field.
Work is underway at the 'Vankor – Payakha –
Sever Bay' trunk oil pipeline. As of the end of 2024, over 78,000
piles were installed; 359 km of pipeline were laid, including a 119
km long two-piped section. The Company completed laying and leak
testing of the main pipeline crossing the Yenisei River, continues
laying the backup pipeline.
The Company completed most of the work on the
construction of two cargo berths, as well as a berth for the port
fleet at the Sever Bay Port terminal. Construction of the first oil
loading berth is underway, and preparatory work for the second one is
carried out. Construction of a crude oil delivery and acceptance
point and the Suzun oil pumping station is underway. The Company
continues with the construction of logistics infrastructure and
hydraulic engineering installations, shore reinforcement, and
expansion of onshore and berth infrastructure.
Refining
In 2024, Rosneft processed 82.6 mln tons of crude
oil in Russia.
Efforts have been made to maintain a high degree
of reliability of refining assets and transition to domestic
technologies. In particular, Rosneft provides its refineries with
proprietary catalysts, which are essential for the production of
high-quality motor fuel. In 2024, Rosneft produced more than 2 th.
tons of catalysts for hydrotreatment of diesel fuel and gasoline
fractions, as well as protective layer catalysts. Rosneft
subsidiaries also produced 138 tons of gasoline reforming catalysts
and 390 tons of catalysts for hydrogen production, petrochemicals and
adsorbents. 1.6 th. tons of coked catalysts for hydrotreatment of
diesel fuel were regenerated.
Stable supply of high-quality motor fuel to
Russian consumers is one of Rosneft's key priorities. In 2024, the
Company sold 43.6 mln tons of petroleum products in the domestic
market, including 13.1 mln tons of gasoline and 18.1 mln tons of
diesel fuel.
The Company is an active participant of trading
activities at the St. Petersburg International Mercantile Exchange
(SPIMEX). In the reporting year, Rosneft sold 10.1 mln tons of
gasoline and diesel fuel on the exchange, which is twice the required
volume.
Financial performance
Operating performance and the current
macroeconomic environment combined with management solutions
determined the dynamics of the Company's key financial indicators.
The Company’s revenue2 for 2024
amounted to RUB 10,139 bln, representing an increase of 10.7%
year-on-year on the back of higher Urals prices. EBITDA amounted to
RUB 3,029 bln with an EBITDA margin of 29.7%.
The unit upstream liftng costs in 2024 amounted to
$2.9/boe.
FY2024 net income attributable to Rosneft
shareholders amounted to RUB 1,084 bln, which was 14.4% lower
year-on-year and driven primarily by higher debt financing rates, as
well as non-cash factors, including exchange rate revaluation of
foreign currency liabilities and the effect of changes in the income
tax rate.
In 2024, capital expenditures amounted to RUB
1,442 bln, which was 11.2% year-on-year higher due to the scheduled
implementation of the investment program at Upstream assets. At
the same time, free cash flow3 in the reporting period
reached RUB 1,295 bln.
The net debt / EBITDA ratio at the end of 2024
remained unchanged in comparison with the end of Q3 2024, amounting
to 1.2x, despite new negative macroeconomic factors.
ESG
Based on 2024 results, Rosneft reaffirmed its
leading positions in sustainable development as well as high quality
of information disclosure.
The Company once again became a constituent of the
Moscow Exchange - RAEX “ESG Balanced” Index with the best
performance among Russian oil and gas companies. Rosneft became the
only Russian oil and gas company with an AA ESG-rating assigned by
RAEX for its “very high” level of ESG risk and opportunity
management, with Rosneft governance rating at the highest AAA level.
As a result of RAEX research, Rosneft was
recognized as a leader of efficient management of water resources,
becoming the only Russian oil and gas company among the top-10 rating
participants with the highest scores in prudent water consumption, as
well as in the quality of corporate policies and programs related to
water consumption. The share of recycled and reused water at Rosneft
production facilities consistently has exceeded 90% for 10 years.
Moreover, Rosneft became the only Russian oil and
gas company with the highest A+ rating “Leader of Corporate
ESG Practices in the Russian Federation” from the Corporate
Development Agency “Da-strategy”.
In the reporting period, the Company proceeded
with activities aimed at achieving sustainable development goals
under the 'Rosneft-2030: Reliable Energy and Global Energy
Transition' strategy.
Rosneft applies advanced technologies and
state-of-the-art production methods to create a safe working
environment and minimize the risk of occupational injuries and
occupational illnesses. In 2024, the Lost Workday Injury Severity
(LWIS) went down by 23%.
In 2024, there were no gas, oil and water shows
(release of oil, gas or water to the surface) during well drilling
operations at Rosneft facilities. The Company continued with pipeline
replacement as part of its efforts to minimize oil and petroleum
product spills.
In 2024, Rosneft reduced the area of contaminated
land by 9%, and the volume of oily waste - by 11% under the corporate
program for the elimination of environmental legacy. In particular,
the Company completed execution of a large-scale remediation program
of legacy lands harmed during the Soviet years at the Samotlor oil
field. Biological soil productivity was restored at the area of more
than 2.2 th. hectares.
1 Excluding
the reimbursement of the excise duty on crude oil, which represents
compensation for oil companies' losses from motor fuels domestic
price controls and refinery modernization costs.
2
Includes sales revenue and
income from associated organizations and joint ventures.
3
Adjusted for prepayments under
long-term oil supply contracts, including accrued interest payments
thereon, net change in operations of subsidiary banks, and operations
with trading securities.
Department of Information and Advertising
Rosneft Oil Company
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