ROSNEFT OIL COMPANY: Financial Results for Q1 2021Source: EQS
ROSNEFT OIL COMPANY (ROSN)
Financial results for Q1 2021
Consolidated IFRS financial results for 1Q 2021:
1Indicator is adjusted for changes in data in the comparable period.
2The calculation includes interest expense on the prepayments on the long-term oil and petroleum products supply agreements.
3Calculated using average monthly
Commenting on financial results of 1Q 2021 Rosneft's Chairman of the Management Board and Chief Executive Officer
"During the reporting period, we managed to ensure the stability and continuity of our work. All employees of the "Rosneft" Group have been provided with the necessary medical support, and employees of the subsidiaries and the central office are being vaccinated to protect them from coronavirus infection. The preservation of life and health, as well as the safety of employees, is one of the key priorities for the Company.
Despite all the difficulties caused by the COVID-19 pandemic, "Rosneft" demonstrated strong financial results: Shareholder's net income amounted to
High performance was possible thanks to the systematic work of all the Company's divisions aimed at improving efficiency. Being the leader in the production of hydrocarbons in
"Rosneft" continued to work on the implementation of strategically important projects, including "Vostok Oil" project, which guarantees the Company the stability of production and profit levels in the long term and provides a significant competitive advantage. "Rosneft" also demonstrates its determination in the energy transition, consistently increasing the share of gas in the production of hydrocarbons.
In accordance with the dividend policy, the Company's Board of Directors recommended paying
Revenues and equity share in profits of associates and joint ventures
1Q 2021 revenues and equity share in profits of associates and joint ventures amounted to RUB 1,737 bln (
Revenues fell by 1.2% compared to 1Q 2020. The drop was due to a reduction of sales volume of crude oil (-32.9% to the level of 1Q 2020) and petroleum products (-14.5% to the level of 1Q 2020), driven by a decrease in global demand due to the COVID-19 pandemic and a reduction in crude oil output under the terms of the new OPEC+ Agreement which is in effect since
1Q 2020 EBITDA amounted to
The positive dynamics of EBITDA was facilitated by a reduction of operating, general and administrative expenses. In 1Q 2021 unit upstream operating costs decreased by 1.5% compared to the level of 4Q 2020 and amounted to
Higher EBITDA relative to 4Q 2020 was mainly a result of higher prices and a positive effect of reverse excise tax.
Net income attributable to Rosneft shareholders
1Q 2021 Net income reached
The significant increase in Net Income y-o-y was driven by higher operating income, reduction of financial expenses and lower negative impact from non-monetary factors.
In 1Q 2021 total capital expenditures amounted to
Free cash flow
Free cash flow amounted to
In 1Q 2021 financial debt and trade liabilities decreased by
Rosneft Information Division
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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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