FIRST TO EXPLORE OPPORTUNITIES IN THE RUSSIAN ARCTIC
FIRST TO EXPLORE OPPORTUNITIES IN THE RUSSIAN ARCTIC
We were first to set foot on the Arctic Shelf and are now successfully developing the largest Arctic fields on the continent
BOOSTING OIL REFINING EFFICIENCY
BOOSTING OIL REFINING EFFICIENCY
We upgrade our refineries to ensure safe, sustainable and technologically advanced production
LEADER IN COMMERCIAL DEVELOPMENT OF THE ARCTIC
LEADER IN COMMERCIAL DEVELOPMENT OF THE ARCTIC
The Company has built a unique logistics scheme to transport Arctic oil across ice prone seas
HIGH-TECH SOLUTIONS ENABLING OPERATIONS IN EXTREME CLIMATE
HIGH-TECH SOLUTIONS ENABLING OPERATIONS IN EXTREME CLIMATE
The Company has set up the Arctic Gates, a one-of-a-kind marine terminal that can be operated at temperatures as low as
CUTTING-EDGE TECHNOLOGIES FOR TAPPING HARD-TO-RECOVER OIL
CUTTING-EDGE TECHNOLOGIES FOR TAPPING HARD-TO-RECOVER OIL
The Company’s efficiency in developing hard-to-recover oil reserves is second to none in Russia. We introduce technologies that uncover massive quantities of hydrocarbons for the entire industry
Our Company Today
LEADER OF INDUSTRY-WIDE TECHNOLOGY PROJECTS
Read more 500+
advanced wells per year
Digitalisation
new level
of business efficiency
of business efficiency
Bazhen
operator of a national project
to create technologies
for developing hard-to-recover oil
to create technologies
for developing hard-to-recover oil
LEADER IN COMMERCIAL DEVELOPMENT OF THE ARCTIC
Read more 12.6
MT OF OIL
liquid hydrocarbon production at Arctic projects in 2018
LEADER IN COMMERCIAL
DEVELOPMENT OF THE ARCTIC
DEVELOPMENT OF THE ARCTIC
LEADER OF INDUSTRY-WIDE TECHNOLOGY PROJECTS
Our accomplishments
Investment Case
Read more ₽ 396
average target price per share +23%
upside
potential (vs price as at 25 March 2019)
potential (vs price as at 25 March 2019)
35%+
of the IFRS net profit to be distributed as dividends for 2018
₽ 1.6
TN
market capitalisation as at 31 December 2018
+43%
share price growth in 2018
THE COMPANY’S POSITION IN THE INDUSTRY
Read more №1
19.1%
ROACE (return on average capital employed)
№2
84.0%
refining depth
№3
92.9
MTOE
hydrocarbon production
THE COMPANY’S POSITION IN THE INDUSTRY
Investment Case
Results 2018
Events of the year
Discovery of the year
High-tech icebreakers
Mubadala Petroleum and RDIF acquire stakes in Gazpromneft-Vostok
key performance
- Growing hydrocarbon production
- Effective oil refining
- Strong financial performance
Hydrocarbon production Proved reserves
(mtoe)
(mtoe)
92.9
+3.5%
1,564
+2.8%
Production growth was predominantly driven by the Company’s largest projects, the Prirazlomnoye, Novoportovskoye and Vostochno- Messoyakhskoye fields. Considerable impact also came from a greater interest in Arcticgas and production being launched at the Tazovskoye field.
Expansion of the Group’s resource base in 2018 was supported by an improved exploration and production drilling technology. The Company also obtained more than 20 licences through licence auctions, exploration requests, and M&A deals. A total of four new fields and 27 hydrocarbon deposits were discovered and recorded in the Russian State Register of Mineral Reserves in 2018.
Oil refining
(mt)
42.9
+7%
In 2018, refining volumes increased following the completion of scheduled repairs and upgrades throughout the Group’s Russian refineries.
The Group also continued the implementation of the second phase of its environmental compliance and technological refurbishment programme.
The Group also continued the implementation of the second phase of its environmental compliance and technological refurbishment programme.
Adjusted EBITDA Net profit
(₽ bn)
(₽ bn)
799.5
+45.1%
401.0
+48.6%
The solid growth was driven by favourable oil prices globally and domestically, successful development of new upstream projects, and increased operating efficiency.
In 2018, the Company’s net profit grew by almost 49%, driven by a favourable pricing environment as per unit upstream and refining expenses went down. Cost cutting was made possible by a comprehensive overhaul of refineries and introduction of innovations in the upstream segment.
Key
performance
performance
Events of
the year
the year
TRANSFORMATION
OPERATIONAL TRANSFORMATION OPERATIONAL
ORGANISATIONAL TRANSFORMATION ORGANISATIONAL
CULTURAL TRANSFORMATION CULTURAL
DIGITAL TRANSFORMATION DIGITAL