Key Operating and Financial Results

Key Operating Results
2018 2017 % 2016
Proved reserves of hydrocarbons Including fuel gas. under SEC standards (mmboe) 41,431 39,907 4% 37,772
Proved reserves of hydrocarbons Including fuel gas. under PRMS standards (mmboe) 47,045 46,520 1% 46,075
Proved marketable gas reserves under SEC standards (bcm) 2,065 1,949 6% 1,714
Proved marketable gas reserves under PRMS standards (bcm) 2,420 2,309 5% 2,273
Hydrocarbons reserve life under PRMS standards (years) 23 23 24
Production of liquid hydrocarbons (mmt) 230.2 225.5 2% 210.0
Gas production (bcm) 67.3 68.4 -2% 67.1
Oil sales abroad (mmt) 123.7 121.8 2% 114.9
Oil refining (mmt) 115.0 112.8 2% 100.3
Petroleum product and petrochemical output (mmt) 111.7 109.1 2% 98.2
Petroleum product and petrochemicals sales abroad (mmt) 73.7 71.9 3% 67.4
Retail sales of petroleum products in Russia (mmt) 13.6 11.7 16% 10.9
Key Financial Results
2018 2017 % 2016
Revenues and income from affiliated companies (RUB bln) 8,238 6,011 37% 4,988
EBITDA (RUB bln) 2,081 1,400 49% 1,278
EBITDA margin 24.8% 22.6% 2.2 p.p. 25.0%
Taxes and customs duties (RUB trln) 4.0 2.6 54% 2.0
Net profit (RUB bln) 649 297 119% 192
Net profit margin 7.9% 4.9 % 3 p.p. 3.8%
ROACE 17.4% 11.5% 5.9 p.p. 13.9%
ROAE 12.3% 5.6% 6.7 p.p. 5.2%
CAPEX (RUB bln) 936 922 2% 709
Unit upstream CAPEX (USD/boe) 6.8 7.1 - 4% 5.0
Unit upstream OPEX (USD/boe) 3.1 3.2 - 3% 2.5
Free cash flow (RUB bln) 1,133 245 362% 439
Dividend per share (RUB) 25.91 Including the dividends for H1 2018 and the dividends recommended by the Board of Directors to be approved at the General Shareholders Meeting in June 2019. 10.48 147% 5.98
Total accrued dividends (RUB bln) 274.6 Including the dividends for H1 2018 and the dividends recommended by the Board of Directors to be approved at the General Shareholders Meeting in June 2019. 111.1 147% 63.4
Proved Reserves of Liquid Hydrocarbons, mmb
Proved Gas Reserves, bcm

Crude Oil and Gas Condensate Reserve Replacement Ratio, SEC Reserve replacement ratio is calculated in tonnes of oil equivalent (toe). Reserve replacement ratio in barrels of oil equivalent (boe) was 175%.
Crude Oil and Gas Condensate Production, mmt

In 12 months of 2018, liquid hydrocarbons production by the Company amounted to 4.67 mmb per day (230.2 mmt), up 2.1% year-on-year. The key growth factors were the record-breaking production volumes at the Company’s largest asset, RN-Yuganskneftegas; the launch of large greenfields (the second phase of the Srednebotuobinskoye, Tagulskoye, Russkoye, and Kuyumbinskoye fields); continued active development of existing projects against the backdrop of a need to comply with the OPEC+ Arrangement to cut oil production throughout the year.

Gas Production, bcm

Gas production decrease during 12 months of 2018 by 1.7% year-on-year was mainly caused by the reduction of associated petroleum gas production at the fields with developing infrastructure, and at some other assets, based on the conditions of development cost efficiency and with respect to external constraints.

Upstream OPEX per Barrel of Produced Oil Equivalent, RUB  per boe

In 2018, the growth of unit operating expenses was 4.9% year-on-year (from 185 to 194 RUB/boe), which is significantly lower than the industrial inflation rate in the Russian Federation (11.9%). The growth is mainly due to rising costs for the repair and maintenance of a growing well portfolio, oilfield services, as well as an increase in the tariffs of natural monopolies.

OPEX of Russian Refineries per Tonne of Refined Oil, RUB  per tonne

In 2018, OPEX of the oil refineries in the Russian Federation, and unit OPEX per tonne of refined oil increased by 11.3% and 8.2% year-on-year, respectively, due to growing natural monopolies’ tariffs, salary indexation and planned increase in the volume of repairs.

EBITDA and Net Profit, RUB  bln

In 2018, EBITDA amounted to RUB  2,081 bln (USD 33.1 bln), 1.5 times above the level recorded in 2017. Operational efficiency increase, favorable external market conditions, and mitigation of constraints under OPEC+ Agreement contributed to EBITDA growth.

In 2018, net income attributable to Rosneft’s shareholders amounted to RUB 549 bln (USD 8.9 bln), 2.5 times as much as in 2017, irrespective of impairment recognized Notes 13, 24, 25 to Appendix 1. . Besides operating profit growth, the net profit growth resulted from the positive effect of foreign exchange differences, and recognition of one-off income from the acquisition of a stake in a joint venture for the field development with a foreign partner and a fair assessment of the previously held stake in a joint venture.

EBITDA and Net Profit, USD bln
Refining Throughput, mmt
Dividend per Share, RUB  per share

Revenue, RUB  bln

Revenue growth factors in 2018 included positive changes in the price trend (a 10% increase of the price for Urals oil in ruble terms), an increase in sales of oil and petroleum products due to the integration of new assets and organic growth of production and growth of oil supplies to the domestic market.

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