Performance Results

Retail Sales

As at the year-end, Rosneft’s retail sales covered 66 Russian regions. We operate the largest and most geographically diverse retail chain in Russia, holding a leading position in most regions. We also have retail chains in Abkhazia, Belarus, and Kyrgyzstan. Rosneft is a leading Russian fuel brand in terms of recognition and quality perception.

As at 31 December 2019, the Company’s retail chain comprised 3,069 filling stations, including 63 in Belarus, Abkhazia, and Kyrgyzstan. Our own and leased filling stations operated 2,079 shops. Over the same period, the Company had 132 oil depots with a combined capacity of 2.2 mmcm and approximately a thousand gasoline tanker trucks in operation.

In 2019, Rosneft closed a deal to acquire a 100% equity stake in Petersburg Fuel Company. As a result, Rosneft established itself as a leader in one of its key regions, while also expanding its retail chain to 3,069 filling stations as at the year-end.

Petroleum product retail sales increased by 6% year-on-year to 14.5 mmt, mostly driven by the use of fuel cards (+ 16%), and average sales per filling station came in at 13.1 t per day.

In accordance with its retail business strategy, the Company took the following steps:

  • expanded the Family Team and BP Club loyalty programmes to cover 13.6 million people in 64 regions as at 31 December 2019;
  • launched virtual BP Club and Family Team cards issued via a mobile app to eliminate the need for a plastic card;
  • kicked off a service for exchanging bonus points or miles between the BP Club and Family Team programmes and the Aeroflot Bonus programme;
  • held a survey of Family Team and BP Club members, which showed a satisfaction level of 98–99%;
  • piloted fuel payments via Moscow Credit Bank’s World of Privileges mobile app. The service enables BP customers in Moscow, the Moscow Region, St Petersburg and Tver to pay for fuel without leaving the car;
  • launched a virtual B2B fuel card across our entire retail chain;
  • expanded sales geography for the better performing eco-friendly Euro-6 motor gasoline, a Top 100 product in Russia, to cover nine regions where our retail networks operate;
  • closed a deal to acquire a 100% equity stake in Petersburg Fuel Company, the largest independent motor fuel operator in St Petersburg;
  • refurbished 102 filling stations in the Rostov, Kursk and Belgorod regions as part of the TNK-to-Rosneft rebranding project;
  • increased the number of CNG modules at the existing filling stations to a total of 12. These modules service 2.5 thousand vehicles daily, with monthly sales standing at 1,7–2 mmcm;
  • continued to expand the food offering in cafés at filling stations by creating self-service areas and installing hot dog rollers. As at 31 December 2019, we served coffee at 2,530 outlets and hot dogs at 1,450 outlets, with self-service areas and coffee corners available at 780 outlets. Our retail stations saw hot drink revenue and non-fuel revenue for the year increase by 6% and 2% year-on-year, respectively;
  • carried on with the Active Sales programme, with sales targets set for key product categories at each filling station;
  • staged over 100 nationwide promos of various types at Rosneft, BP and Bashneft filling stations to boost non-fuel sales;
  • completed a project to overhaul 14 existing BP filling stations with a focus on the café offering, opened five additional small-size filling stations in the Moscow Region and Tver. The refurbished filling stations feature a single customer service area which accommodates a Wild Bean Café and a fuel section;
  • arranged for private label products (water, chocolate bars, wipes, and screen wash) to be sold at 35 subsidiaries;
  • performed over 9,000 checks at the filling stations in 47 Russian regions as part of the ongoing fuel quality assessment using mobile laboratories;
  • In 2019, the Federal Agency for Technical Regulation and Metrology (Rosstandart) conducted 32 independent inspections across Russia, which covered 4 oil depots and 74 retail stations. The inspections confirmed the high quality of our motor fuel.
Retail Sales

Improvements in Retail Business Efficiency

In 2019, the Company continued with phased automation of all material flow measurements and introduction of a monitoring system keeping track of inventories at subsidiaries. As at 31 December 2019, we automated measurements at 81 oil depots and more than 2,900 filling stations and provided measuring instruments for 99% of material flows at filling stations and 79% at oil depots.

To ensure sustainable demand and maximise retail and wholesale customer loyalty, we will focus on:

  • developing a risk-based fuel quality management system across the supply chain, from refinery to consumer;
  • implementing an electronic system to guarantee the quality and quantity of petroleum products delivered in gasoline tanker trucks;
  • expanding the fuel offering in regions where Rosneft operates its retail chain;
  • expanding the non-fuel offering, including private label products and merchandise from other FMCG players;
  • developing digital communication channels at filling stations to acquire new customers and enhance customer experience.

In 2019, the Company continued to improve the efficiency of its retail business by optimising administrative costs and operating costs at filling stations and oil depots. Despite an increase in variable storage and transportation costs driven by a 9% rise in retail sales, we managed to reduce unit operating costs by 3% year-on-year.

As part of our efforts to improve the efficiency of oil depot facilities, we shut down seven underperforming depots that did not meet its technical requirements. We also cut transportation costs by optimising the logistics of direct petroleum product supplies from refineries using tanker trucks. In 2019, we increased direct supply volumes by 4% year-on-year.