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25 Nov 2009 13:56
ļ»æ
Rosneft posts EBITDA of USD 3.7 bln,
crude oil production growth of 4.1% in Q3 2009
On November 25, 2009 Rosneft reported its consolidated financial results under US GAAP for Q3 and 9M 2009.
|
Q3Ā 2009 |
Q2Ā 2009 |
Change, % |
9MĀ 2009 |
9MĀ 2008 |
Change, % |
|
|
Revenue,Ā USD mln |
13,048 |
10,947 |
19.2% |
32,259 |
58,192 |
-44.6% |
|
EBITDA,Ā USD mln |
3,659 |
3,574 |
2.4% |
9,551 |
17,076 |
-44.1% |
|
Net income,Ā USD mln |
1,168 |
1,612 |
-27.5% |
4,840 |
10,345 |
-53.2% |
|
Crude oil production, th. bpd |
2,214 |
2,127 |
4.1% |
2,151 |
2,119 |
1.5% |
In Q3 2009 Rosneft's revenues increased by 19.2% quarter-on-quarter, to USD 13,048 mln. The increase was due to higher crude oil and petroleum product prices, growth of crude oil production volumes and refinery throughput. In 9M 2009 revenues amounted to USD 32,259 mln, a decrease of 44.6% year-on-year. The decrease was primarily attributable to a drop in average crude oil and product prices.
Rosneft's EBITDA amounted to USD 3,659 mln in Q3Ā 2009, aĀ 2.4%Ā increase quarter-on-quarter. Moderate EBITDA growth in spite ofĀ theĀ strong increase in revenues andĀ steadyĀ cost controlĀ resulted from growth ofĀ the export customs duty,Ā mineral extraction tax and transport tariffs, which together increasedĀ by USD 2,050 mln quarter-on-quarterĀ whileĀ revenuesĀ grew byĀ USD 2,101 mln. Continuing RUB appreciation against the USD was another negative factor for Q3 results. EBITDA was USD 9,551 mln in 9M 2009, 44.1% below the level of 9M 2008.
Net income was USD 1,168 mln in Q3 2009, 27.5% lower quarter-on-quarter. The decline was primarily a result of the effective income tax rate growth fromĀ 20% to 37% following the continuing nominal appreciation of the RUB against the USD (the rate for Q3 includes the adjustment for the difference between 20% and effective rate of 12% applied in 1H 2009, as the estimated rate for 2009Ā grew from 12% toĀ 20%). Increased depreciation, depletion and amortization due to the launch of the Vankor field, growth of interest expense due to the decrease in capitalized interests and creation of reserveĀ forĀ the Russian Federal Antimonopoly Service claims were other main factors ofĀ decreasedĀ net income.
In 9M 2009Ā Rosneft continued to decrease its net debt. As of the end of September 2009 net debt was USD 18,862 mln, a decrease of USD 2.4 bln comparedĀ toĀ December 31, 2008. The decreaseĀ reflectsĀ strong free cash flow generation which amounted to USD 2.2Ā bln in 9M 2009.Ā
In Q3 2009 Rosneft's daily crude oil output (including production by subsidiaries and share in production by affiliates) increased by 4.1%, to 2,214 th. barrels per day, from 2,127 th. barrels per day in Q2 2009. The growth was driven byĀ the launch ofĀ commercial production at the Vankor field in July 2009,Ā contributingĀ 104Ā th. barrels per dayĀ duringĀ Q3Ā 2009. Crude oil production at Vankor averaged 148 th. barrels per day in September and reached 160 th. barrels per day in October.Ā In Q3 2009 Rosneft produced 12.01 mln tonnes of petroleum products, up 3.1% quarter-on-quarter.Ā
In Q3Ā 2009Ā Rosneft continuedĀ its successful implementation ofĀ cost optimization measures. Upstream operating expenses were USD 2.62 per barrel compared with USD 2.51 per barrel in Q2 2009. The increaseĀ resulted from theĀ real appreciation of the RUBĀ ofĀ 4.6%Ā and launch of commercial production at the Vankor field.Ā Per barrel costs at Vankor were higher than Rosneft's average as production volumes were low comparedĀ toĀ the target capacity of the project.Ā Rosneft management expects these costs to decrease toĀ aĀ level significantly below the average for the Company's portfolio as Vankor production continues to grow in the next few quarters.Ā Operating expenses of the Company's refineries were USD 14.6 per tonne in Q3Ā 2009, aĀ decrease of 6.1% quarter-on-quarter, which resulted from decreasedĀ volume ofĀ turnaround works and optimization of headcount. General and administrative expenses were USD 348 million, 4.9% lower than inĀ Q2Ā despite appreciation of the RUB against the USD. The decrease resulted from the reduced expenses related to construction activities at Vankor following the launch of Vankor - Purpe pipeline, as well as from reduction in compensation payments and reversal of bad debt allowance.
Commenting on the results, Rosneft's President Sergey Bogdanchikov said: "Commercial production launch at the Vankor field inĀ Eastern Siberia, Rosneft's key investment project, was our greatest achievement in Q3 2009. TheĀ fieldĀ was launchedĀ on scheduleĀ and is performing above expectations allowing us to confirm with confidence our production target for the year.Ā We are also pleased with our success in maintaining industry low operating and SG&A costs. AsĀ ofĀ today, Q4 also looks to be a strong quarter and we are on track to exceed our plan on all key financial and operating metrics".
Rosneft's US GAAP financial statements and Management's Discussion and Analysis (MD&A) for Q3 and 9M 2009 and a related investor presentation are available on the Company's website at www.rosneft.com.
Rosneft Information Division
Tel.: +7 (495)-221-31-07
Fax: +7 (495)-411-54-21Ā
n_manvelov@rosneft.ru
NovemberĀ 25, 2009
These materials contain statements about future events and expectations that are forward-looking in nature. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements expressed or implied by such forward-looking statements to differ. We assume no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.
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