Russia’s Bashneft earnings grow in Q1 2014

On June 2, Bashneft Group, which comprises JSOC Bashneft, its subsidiaries, affiliates and joint ventures, published its unaudited consolidated financial statements for the first quarter of 2014 prepared in accordance with International Financial Reporting Standards (IFRS)

In the first quarter of 2014, the Group’s revenue from sales increased by 16.8% compared to the first quarter of 2013 and totalled RUB 146,668 million. The increase in revenue was primarily due to growth of oil production and output of petroleum products by 7% and 3.2%, respectively. In addition, increased exports of crude oil (by 24.2%) and petroleum products (by 21.8%) outside of the Customs Union combined with a 14.8% rise in the rouble/dollar exchange rate and a 9.5% increase in retail sales of petroleum products on the domestic market. In the first quarter of 2014, the Group’s revenue from sales increased by 0.3% compared to the fourth quarter of 2013.

In the first quarter of 2014, adjusted EBITDA grew by 20.8% compared to the first quarter of 2013 and reached RUB 25,475 million. Net income attributable to the shareholders of the parent company increased by 16.4% compared to the first quarter of 2013 and amounted to RUB 13,959 million. Adjusted EBITDA declined by 5.6% compared to the fourth quarter of 2013, while net income attributable to the shareholders of the parent company rose by 2.4%.

Capital expenditures amounted to RUB 9,053 million, an increase of 55.5% compared to the first quarter of 2013, mainly due to financing the development of the Trebs and Titov fields in the Nenets Autonomous District.

In the first quarter of 2014, Bashneft Group’s net cash generated from operating activities totalled RUB 5,121 million, which is 74.1% higher than in the first quarter of 2013. At the same time, in the first quarter of 2014, operating cash flow decreased by 78.4% compared to the fourth quarter of 2013 due to changes in working capital, including a seasonal increase in inventories, as well as prepayment received in late 2013 for petroleum products to which were supplied in the first half of January 2014.

Source: Bashneft Press Office, 2014