REPORT for 2015 year

3.2. Financial and economic indicators of Transneft group (IFRS consolidated data)

Basic financial and economic indicators of Transneft group (IFRS consolidated data), mln RUR.

Indicator

2015 year

2014 year

Absolute alteration

Alteration,
%

Revenues total

815 652

774 380

41 272

5,3

revenues from sales of oil transportation services

558 775

499 838

58 937

11,8

revenues from sales of oil products transportation services

57 309

48 186

9 123

18,9

revenues from sales of salable oil

171 512

193 147

-21 635

-11,2

other revenue

28 056

33 209

-5 153

-15,5

OPEX

-581 590

-541 053

-40 537

7,5

Operating income

234 062

233 327

735

0,3

Net financial expenses

-64 390

-134 894

70 504

-52,3

Group structural change

-

8 796

-8 796

х

Share of loss from associated and jointly controlled entities

-4 419

-10 786

6 667

-61,8

Before-tax income

165 553

96 443

69 110

71,7

Current income tax

-43 149

-27 164

-15 985

58,8

Deferred income tax

21 023

-9 779

30 802

х

Income tax expense

-22 126

-36 943

14 817

-40,1

Profit for a reporting period

143 427

59 500

83 927

2,4 times

Other total (expenses)/income excluding income tax

-5 488

1 931

-7 419

х

Total income excluding income tax

137 939

61 431

76 508

2,2 times

Revenue of Transneft group grew by 41 272 million rubles or 5.3% mainly due to revenues from the provision of oil and oil products transportation services. The amount of revenue excluding revenue from sales operations of salable oil and oil products increased in 2015 year by 65 601 million rubles or 11.4% compared to the same period of the last year and amounted to 78.8% of total revenues for the reporting period.

Operational expenditures, mln. RUR

The total amount of operational expenditures in 2015 year compared in 2014 year grew by 40 537 mln RUR or 7,5 %, including:

Articles of operational expenditures

Year, ended on December, 31 2015

Share in total amount of expenditures, %

Year, ended on December, 31  2014

Share in total amount of expenditures, %

Absolute alteration

Alteration, %

Labour, insurance payments and social spending costs

132 202

22,7

114 462

21,2

17 740

15,5

Electricity

34 471

5,9

32 043

5,9

2 428

7,6

Materials

24 592

4,2

22 999

4,3

1 593

6,9

Services on repair and maintenance of proper technical condition of the pipeline network

14 382

2,5

13 608

2,5

774

5,7

Insurance costs

6 640

1,1

6 126

1,1

514

8,4

Taxes (excluding profit tax)

17 005

2,9

12 309

2,3

4 696

38,2

Pension contributions

10 524

1,8

3 173

0,6

7 351

3,3 times

Total operational expenditures

38 099

6,6

25 172

4,4

12 927

51,4

Total operational expenditures (excluding depreciation and amortization, and cost of goods sold)

277 915

47,7

229 892

42,3

48 023

20,9

Depreciation and amortisation

116 763

20,1

111 818

20,7

4 945

4,4

Cost of salable oil sale for export (including export customs duty)

141 766

24,3

163 318

30,2

-21 552

-13,2

Cost of salable oil sale within the domestic market

23 680

4,1

23 126

4,3

554

2,4

Cost of salable oil products sale

1 658

0,3

4 107

0,8

-2 449

-59,6

Cost of sale of other goods for resale

610

0,1

351

0,1

259

73,8

Onetime costs (including pension contributions costs and other expenditures not connected with production activity)

19 198

3,3

8 441

1,6

10 757

2,3 times

Total operational expenditures

581 590

100,0

541 053

100,0

40 537

7,5

Excluding depreciation, amortization, and cost of the goods sold the operational expenditures grew by 48 023 mln RUR of 20,9 %.

The growth of the total amount of operational expenditures of Transneft group formed mainly under the following factors:

  • growth of the amount of depreciation costs. Growth of depreciation costs was mainly due  to the setting into operation of new fixed assets objects, carrying out of works on revamping  and updating of fixed assets objects within the period of the 2014-2015 years;
  • growth of the amount of  labor costs, insurance payments and social spending costs;
  • growth of the amount of pension contributions;
  • growth of the amount of other taxes attributable to operational expenditures.
Oil transportation unit costs per 100 ton-kilometer

Indicator

2015 year

2014 year

Absolute alteration

Alteration, %

Oil transportation Freight traffic, mln. tons х km

1 185 028

1 147 152

37 876

3,3

Unit costs per 100 ton х km, rubles

16,46

15,60

0,86

5,5

Inflated unit costs per 100 ton х km, rubles (inflated by 2015 year, modified to freight turnover of 2015 year)

17,15

-0,69

-4,0

Oil products transportation unit costs per a ton

Indicator

2015 year

2014 year

Absolute alteration

Alteration, %

Oil products transportation 
Transportation volume, mln. tons

32,2

31,2

1,0

3,21

Unit costs per a ton, rubles

685,82

595,05

90,77

15,25

Inflated unit costs per a ton, rubles (inflated by 2015 year, modified to transportation volume of 2015 year)

632,90

52,92

8,36

Indicators of net profit, EBITDA, EBITDA profitability, mln RUR

Indicator

2015 year

2014 year

Alteration, %

Net profit for the period

143 427

59 500

2,4 times

EBITDA

368 200

348 389

5,7

EBITDA profitability, %

54,8

57,5

х

Also, below is given the information for the 2015 and 2014 years according to the administrative accounts by segments. Separately there are allocated the following segments: transportation of oil and transportation of oil products and freight operations on oil and oil products sale.

Data on the administrative accounts by segments, mln. RUR.

For the year, ended
on December,31st  -2015 year

Oil transportation

Oil products transportation

Oil and oil products merchandise accounts

Updating accounts

Total under IFRS

External peurchasers sales proceeds

581 563

62 606

173 234

-1 751

815 652

Operational expenditures

-407 687

-41 576

-166 810

34 483

-581 590

including amortization

-149 115

-9 315

-

41 667

-116 763

Operating income

173 876

21 030

6 424

32 732

234 062

Financial income

-

-

-

-

541 078

Financial expenses

-

-

-

-

-605 468

Share in loss of dependent and jointly controlled entities

-

-

-

-

-4 119

Before-tax income

173 876

21 030

6 424

32 732

165 553

Income tax expense

-

-

-

-

-22 126

Profit for the reporting year

173 876

21 030

6 424

32 732

143 427

 

For the year, ended
on December,31st  -2014 year

Oil transportation

Oil products transportation

Oil and oil products merchandise accounts

Updating accounts

Total under IFRS

External peurchasers sales proceeds

524 272

49 828

197 068

 3 212

774 380

Operational expenditures

-339 496

-29 598

-191 213

19 254

-541 053

including amortization

-132 173

-5 068

-

25 423

-111 818

Operating income

184 776

20 230

5 855

22 466

233 327

Financial income

-

-

-

-

303 676

Financial expenses

-

-

-

-

-438 570

Changes in Group structure

 

 

 

 

8 796

Share in loss of dependent and jointly controlled entities

-

-

-

-

-10 786

Before-tax income

184 776

20 230

5 855

22 466

96 443

Income tax expense

-

-

-

-

-36 943

Profit for the reporting year

184 776

20 230

5 855

22 466

59 500