REPORT for 2015 year

3.1. Transneft PJSC financial and economic indicators (according to RAS data)

Normal income and expenses

Earnings from goods (works, services) sale

Indicator name

Sum, thousand RUR

Alteration, thousand RUR

Alteration,
 %

2015 year

2014 year

1

2

3

4

5

Earnings – total 
including:

756 936 378

717 346 491

39 589 887

5,5

oil transportation services

555 764 721

499 570 524

56 194 197

11,3

oil products transportation services

48 539 932

42 016 927

6 523 005

15,5

oil sales for export

143 589 097

168 514 599

-24 925 502

-14,8

oil compunding services

5 329 348

4 633 427

695 921

15,0

rent revenue

787 417

258 721

528 696

204,3

Other

2 925 863

2 352 293

573 570

24,4

Alteration in revenue from sale of goods (works, services) in 2015 year compared with the 2014 year resulted from:

  • increase in revenues from the provision of oil transportation services due to changes in tariffs, volumes of oil transportation and freight traffic, as well as the introduction of new tariffs;
  • increase in revenues from the provision of oil products transportation services as a result of changes in tariffs, and volumes of oil products transportation and freight traffic;
  • reduction in revenues from oil export sales under a contract with China National United Oil Corporation, mainly due to oil price cut and the growth of the US dollar exchange;
  • increase in revenues from the provision of oil compounding services due to increasing of the compounding volumes;
  • increase in revenues from the communication facilities rent;
  • increase in revenues from other activities, mainly due to the provision of agency and information and consulting services.
Расходы по обычным видам деятельности

Indicator name

Sum, thousand RUR

Alteration, thousand RUR

Alteration, %

2015 year

2014 year

1

2

3

4

5

General expenses – total
including:

736 079 543

705 105 419

30 974 124

4,4

oil transportation services

526 010 716

484 768 324

41 242 392

8,5

oil products transportation services

48 280 585

40 175 618

8 104 967

20,2

oil sales for export  (including commercial expenses)

141 081 452

164 080 658

-22 999 206

-14,0

oil compunding services

3 197 609

2 803 673

393 936

14,1

rent revenue

763 824

222 425

541 399

243,4

administrative expenses

16 551 734

12 836 925

3 714 809

28,9

Other

193 623

217 796

-24 173

-11,1

Alteration of general expenses in 2015 year compared with the 2014 year resulted from:

  • increase in expenses under the contracts for the provision of services on intake / delivery, pumping, transfer, discharge/ loading of oil and under contracts for the provision of services for oil products reception, delivery (pumping) to destinations, the shipment at the destination with the enterprises of the Transneft group due to the increase of the volumes of oil and oil products transportation;
  • oil compounding cost development due to increasing of volumes of compounding;
  • impact of value of oil sold for export mainly due to fall in oil prices.
Net profit, thousand RUR

Indicator name

2015 year

2014 year

Alteration

Net profit

12 801 410

11 783 833

1 017 577

Net profit in 2015 year in comparison with 2014 year grew by 1 018 mln RUR and amounted to 12 801 mln RUR.

Net assets value, thousand RUR

Indicator name

на 31.12.2015

As of 31.12.2014

As of 31.12.2013

Стоимость чистых активов

165 492 502

155 691 822

151 419 887

Receivables and payables of Transneft PJSC

Receivables and payables, thousand RUR

Form of indebtedness

As of 31.12.2015

As of 31.12.2014

Alteration

Non-current loan receivable

194 296

165 711

28 585

Settlements in respect of the sale of shares in a partnership

160 808

136 541

24 267

Settlements in respect of non-interest-bearing loans granted

16 639

15 661

978

Settlements in respect of other operations

16 849

13 509

3 340

Current receivable

181 552 668

115 263 588

66 289 080

Buyers and customers

16 532 774

18 797 932

-2 265 158

Settlements in respect of oil transportation services

3 890 139

3 890 139

-

Settlements in respect of compounding services

513 592

265 270

248 322

Settlements in respect of agency agreements

379 613

320 253

59 360

Settlements in respect of rent services

88 676

60 768

27 908

Settlements in respect of oil sale for export

10 756 524

13 543 662

-2 787 138

Settlements in respect of consulting service

867 304

669 475

197 829

Other

36 926

48 365

-11 439

Advances paid

72 069 356

26 843 789

45 225 567

Under contracts on oil and oil products transportation

29 282 409

5 347 191

23 935 218

Under agency agreements on oil transportation

1 696 981

1 437 761

259 220

Under agency agreements on oil products transportation

16 098

19 732

-3 634

For non-current assets purchasing1)

42 160 698

18 818 655

23 342 043

Other

10 204 392

4 627 856

5 576 536

VAT in respect of advances paid

-11 291 222

-3 407 406

-7 883 816

Tax and due payments

34 318 147

51 264 232

-16 946 085

Profit taxes of CTG

9 435 793

12 769 312

-3 333 519

VAT

24 881 148

38 486 925

-13 605 777

Other taxes and levies

1 206

7 995

-6 789

Settlements with accountable persons

1 888

2 191

-303

Other settlements with staff

714

775

-61

Sundry debtors

82 927 172

23 654 690

59 272 482

Settlements in respect of  accrued interest under loans granted

16 899 798

9 656 176

7 243 622

Settlements in respect of agency agreements

1 863 114

999 360

863 754

Settlements in respect of dividends receivable

6 830 916

-

6 830 916

Settlements with CTG

37 730 452

10 850 578

26 879 874

Other settlements

19 602 892

2 148 576

17 454 316

Provision for doubtful debts

-24 297 383

-5 300 021

-18 997 362

Total:

181 746 964

115 429 299

66 317 665

Non-current loan receivable

As part of long-term receivables there is shown indebtedness, which arose in connection with the sale in 2002 year of the share in a partnership which was established for the construction of the Baltic Pipeline System, with payment in installments within 25 years.

Debt balance shown in standard conventional unit and due to be repaid in equal installments not later than 30.01.2027 year. Payment is made in Russian rubles at the exchange rate of the US dollar, set by the Bank of Russia on the date of payment. Compared to 31.12.2014 year receivable for the sale of shares in a partnership has increased due to the rise of the US dollar exchange rate.

Current receivable

Alteration of the current receivables as of the end of the year compared to the last year was mainly due to:

  • increasing of advances paid in connection with the acquisition of fixed assets and advances paid to organizations of the Transneft group under the contracts for the provision of services on intake / delivery, pumping, transfer, discharge/ loading of oil;
  • increase in settlements receivable from the participants of CTG;
  • increase in settlements receivable on interest accrued under loans organizations of Transneft group;
  • reduction of receivables on settlements with the budget in terms of value-added tax and income tax of consolidated group of taxpayers.

As of 31.12.2015 year and 31.12.2014 year current receivables are shown net of allowance for doubtful accounts.

Payables, thousand RUR

Form of indebtedness

As of     31.12.2015

As of     31.12.2014

Alteration

Long-term accounts payable

577

577

-

Settlements with sundry creditors

577

577

-

Short-term accounts payable

152 232 995

146 249 574

5 983 421

Suppliers and contractors

73 141 933

71 864 412

1 277 521

Settlements in respect of oil transportation

48 523 669

52 381 766

-3 858 097

Settlements in respect of oil products transportation

12 140 324

10 501 588

1 638 736

Settlements in respect of oil purchasing

8 730 297

6 622 916

2 107 381

Settlements in respect of oil compounding

308 155

159 162

148 993

Settlements in respect of erection and construction, revamping , upgrading and acquisition of capital assets and intangible assets

990 437

1 174 162

-183 725

Other settlements

2 449 051

1 024 818

1 424 233

Indebtedness to the state non-budgetary funds

346

237

109

Indebtedness to the budget

8 228

13 489

-5 261

Advances received (w/o VAT)

48 028 214

43 589 777

4 438 437

Under the contracts of oil transportation

35 155 102

31 818 557

3 336 545

Under the contracts of oil products transportation

12 007 744

11 639 648

368 096

Under sundry contracts

865 368

131 572

733 796

Settlements in respect of agency agreements

26 879 557

28 444 316

-1 564 759

Settlements in respect of oil transportation agency agreements

1 500 562

1 312 412

188 150

Settlements in respect of oil products transportation agency agreements

1 667 011

1 649 263

17 748

Settlements with the companies of Transneft Group under the sundry agency agreements

23 167 060

25 150 008

-1 982 948

Settlements under the sundry agency agreements

544 924

332 633

212 291

Settlements in respect of CGT

4 023 125

2 225 297

1 797 828

Settlements with sundry creditors

151 592

112 046

39 546

Total:

152 233 572

146 250 151

5 983 421

Alteration of accounts payable as of the end of the reporting year compared to the last year was mainly due to the following factors:

  • increase in advances received from customers under the contracts of oil and oil products transportation;
  • increase in payables to members of CGT.
Taxes

Tax and levy liabilities accrued in the reporting year and the previous year, are as follows:

Tax and levy liabilities

Tax name

2015 year

2014 year

Alteration (+/-)

thousand RUR

%

Corporate profit tax

-

37

-37

-100

Profit tax accrued under CGT

31 504 432

17 189 145

14 315 287

83,3

Value added tax (VAT)

-90 369 949

-94 955 887

4 585 938

-4,8

Corporate property tax

56 900

54 335

2 565

4,7

Other taxes and levies

2 152 286

1 575 691

576 595

36,6

Total: 
including:

-56 656 331

-76 136 679

19 480 348

 

to the federal budget

-87 161 695

-93 210 496

6 048 801

-6,5

to the regional and local budgets

29 283 970

16 295 111

12 988 859

79,7

to the non-budgetary funds

1 221 394

778 706

442 688

56,8

Transneft PJSC accrued and paid corporate profit tax in 2015 year as a responsible member of a Transneft consolidated group of taxpayers (hereinafter - CGT), which consisted of 28 (in 2014 year - 31) entities of Transneft system in accordance with the agreement on the establishment of CGT dated from 19.03.2012 year №175 / TSP / 12 (as amended of Agreements dated from 05.11.2014 year № 5 and dated from №7 of 25/11/2015 year).

Indicators of Transneft PJSC financial stand

Indicators of Transneft PJSC financial stand, profitability and working capital turnover data

Indicator name

31.12.2015

31.12.2014

Variance +/-

1.

Return on equity (ROE), %

7,87%

7,59%

0,28

2.

Return on invested capital (on operating income), % (ROIC)

2,00%

1,41%

0,59

3.

Return on sales (of products), %

1,69%

1,64%

0,05

4.

Receivable turnover

6,41

8,63

-2,22

5.

Marginal liquidity ratio (of  intermediate cover)

1,26

0,61

0,65

6.

Working capital ratio

1,26

0,61

0,65

The increase of return on equity by 0.28% is due to breakthrough growth of net profit (by 8.64%) compared with the average value of equity (by 4.74%), indicating an increase of profitability of use of equity.

The increase of return on invested capital by 0.59% due to the excess of the profits from sales growth (by 70.38%) above the average annual growth of the value of invested capital (at 20.46%). The increase of the average annual value of invested capital was impacted by financial investments at the end of the reporting year as compared to 31.12.2014 year mainly due to increase of loans granted to subsidiaries (including due to the growth of the US dollar exchange rate).

The growth of sales profitability is conditional upon excess of net profit growth (8.64%) over revenue growth (5.52%).

The increase of liquidity ratios in comparison with the 2014 year in more than 2 times is conditional upon current assets growth (at 46.57%) at a decrease in current liabilities (by 30.86%). 

Working capital growth is conditional upon receivables growth, as well as financial investments, cash and cash equivalents (deposits opened in credit institutions for up to 3 months).

Decrease of current liabilities is primarily due to a decrease of short-term borrowings and the transfer of part thereof into long-term borrowings: as of 31.12.2014 year the total amount of the indebtedness on bonds of series 01-03 (135 000 million rubles) was transferred from long-term debt into the short-term, since bond holders had the right to demand redemption of issuers bonds in May (serial 01), in September (serial 03) and in October (serial 02) of 2015 year. Redemption of bonds amounted in total to 30 898 million rubles, and part of the debt was transferred to the long-term indebtedness.

 

1 Including advances shown in the balance sheet in the line1110, "Intangible Assets" paid in connection with the establishment, acquisition of intangible assets as of 31.12.2015 year - 68 799 thousand RUR (as of 31.12.2014 year - 142,173 thousand RUR), and advances shown in the line 1150 "Fixed assets" paid in connection with the establishment, acquisition of fixed assets as of 31.12.2015 year - 42,091,899 thousand RUR (as of 31.12.2014 year - 18,676,482 thousand RUR). In the line other settlements with sundry debtors, there also is included the amount of receivable on settlements with the state budget funds as of 31.12.2015 year - 8858 thousand RUR, as of 31.12.2014 year - 6779 thousand RUR