Bashneft's net income increases to 22 billion roubles in the third quarter of 2015

Это обусловлено ростом добычи нефти на 6,3% (до 5 134 тыс. тонн), эффективным управлением графиком ремонтов технологических установок НПЗ, увеличением объема переработки по сравнению со II кв. 2015 г. при сохранении высокого уровня выхода светлых нефтепродуктов, а также ростом эффективности их продаж при благоприятной ценовой конъюнктуре.

Thus, in the third quarter of 2015, the volume of wholesale distribution of petroleum products and petrochemicals on the domestic market increased by 27.3% (to 2,395 thousand tonnes), while sales revenue gained 39.7% quarter on quarter (reaching 59,244 million roubles). In the third quarter of 2015, retail sales of engine fuel increased by 7.3% quarter on quarter (to 429 thousand tonnes), while revenue from sales grew by 10.9% (to 15,976 million roubles). Crude oil sales in Russia added 44.6% compared to the second quarter of 2015 (reaching 759 thousand tonnes; the growth was driven mainly by an increase in production at Burneftegaz), while revenue from sales increased by 33.5% (to 9,888 million roubles).

In the third quarter of 2015, the amount of cash generated from operating activities dropped by 6.1% quarter on quarter (to 35,328 million roubles). At the same time, the Company’s operating cash flow remained at a level which enabled the Company to pay 20,073 million roubles in dividends for 2014 in the third quarter of 2015 and to finance capital expenditures totalling 15,299 million roubles, which is comparable to the level reached in the second quarter of 2015.

Furthermore, as of September 30, 2015, the Company reduced its adjusted net debt by 4.1% (to 101,745 million roubles) compared to the amount as of June 30, 2015 (106,041 million roubles) and by 20.2% compared to the level reported as of September 30, 2014 (127,577 million roubles).

During the nine months of 2015, the Company’s revenue decreased slightly (by 2.0%) year on year; at the same time, adjusted EBITDA rose by 17.3%, operating income gained 16.0%, while net income excluding minority interest increased by 12.9% (to 51,278 million roubles).

Strong financial performance was supported primarily by a 12.1% year-on-year increase in oil production (to 14,674 thousand tonnes) and growth of export and domestic sales of crude oil.

In addition, despite a fall in consumer demand, during the nine months of 2015 the Company boosted retail sales of fuel by 6.6% (to 1,189 thousand tonnes) and achieved a 12.8% increase in revenue from retail sales (to 43,194 million roubles). These results were achieved due to an expansion of the network of filling stations, implementation of the rebranding programme and favourable market conditions.

During the nine months of 2015, operating cash flow dropped by 9.6% (to 70,248 million roubles), which was related mainly to changes in working capital and a high base during the nine months of 2014, when Bashneft received prepayment under a long-term contract for supply of petroleum products totalling 17,347 million roubles.

During the nine months of 2015, capital expenditure increased by 35.6% compared to the same period in 2014 (to 42,862 million roubles); this was related mainly to the development of the Sorovskoye field in Western Siberia and an increase in capital expenditure on brownfields in Bashkortostan, including on the production drilling programme.