Liquidity and capital resources


Cash (₽ m)
Item 2014 2015 2016 2017 2018 ∆ 2018/2017 (%)
Net cash from operating activities 283,965 285,175 321,297 421,700 537,523 27.5
Net cash used in investing activities (364,792) (314,511) (323,854) (312,889) (335,038) 7.1
Net cash from / (used in) financing activities 10,573 82,193 (68,430) (50,521) (56,543) 11.9
Net increase / (decrease) in cash and cash equivalents (70,254) 52,857 (70,987) 58,290 145,942 150.4

Net cash from operating activities (₽ m)
Item 2014 2015 2016 2017 2018 ∆ 2018/2017 (%)
Net cash from operating activities  Before the effect of changes in working capital, income tax, interest and dividends. 304,421 312,169 361,567 439,319 624,783 42.2
Changes in working capital 23,907 18,342 15,216 52,809 326 (99.4)
Income tax paid (30,122) (19,522) (22,158) (36,530) (61,157) 67.4
Interest paid (16,624) (28,229) (36,476) (39,449) (46,492) 17.9
Dividends received 2,383 2,415 3,148 5,551 20,063 >200
Total 283,965 285,175 321,297 421,700 537,523 27.5

Net cash from operating activities went up by 27.5% y-o-y primarily due to higher operating profit and dividends received from joint ventures.


Net cash used in investing activities (₽ m)
Item 2014 2015 2016 2017 2018 ∆ 2018/2017 (%)
Capital expenditures (271,330) (349,036) (384,817) (357,090) (375,197) 5.1
(Acquisition) / disposal of subsidiaries, shares in joint operations and equity affiliates (57,848) 197 (2,028) (8,345) (1,360) (83.7)
Net changes in deposits (15,877) 45,745 48,517 (5,933) 6,710
Net changes in loans issued and other investments (22,603) (2,104) 44,938 11,511 (74.4)
Interest received 9,149 18,885 106.4
Other transactions (19,737) 11,186 16,578 4,392 4,413 0.5
Total (364,792) (314,511) (323,854) (312,889) (335,038) 7.1

Net cash used in investing activities went up by 7.1% y-o-y primarily due to higher capital expenditures.


Net cash used in financing activities (₽ m)
Item 2014 2015 2016 2017 2018 ∆ 2018/2017 (%)
Net changes in debt 67,160 121,565 (63,929) 3,556 5,484 54.2
Payment of dividends to shareholders (46,755) (36,346) (2,598) (50,382) (70,774) 40.5
Acquisition of non-controlling interest (4,118)
Proceeds from sale of non-controlling interest in subsidiaries 22,348
Other transactions (5,714) (3,026) (1,903) (3,695) (13,601) >200
Total revenue 10,573 82,193 (68,430) (50,521) (56,543) 11.9

Net cash used in financing activities increased by 11.9% y-o-y. Dividends paid for 2017 (₽ 15 per share) exceeded dividend payments for 2016 (₽ 10,68 per share).


Capital expenditures (₽ m)

Capital expenditures for exploration and production increased by 1.8% y-o-y due to:

  • the launch of hi-tech icebreakers;
  • participation in subsoil tenders (Savitsky, Pokhvistnevsky, and Karabashsky licence blocks).

Capital expenditures for refining increased by 15.8% y-o-y following the plant upgrade in Serbia (construction of delayed coker unit).


Debt and liquidity (₽ m)
Item as at 31.12.2014 as at 31.12.2015 as at 31.12.2016 as at 31.12.2017 as at 31.12.2018
Short-term loans and borrowings 61,121 147,319 80,187 131,760 90,923
Long-term loans and borrowings 502,306 670,779 596,221 548,654 684,530
Cash and cash equivalents (53,167) (114,198) (33,621) (90,608) (247,585)
Short-term deposits (76,658) (49,206) (886) (5,779)
Net debt 433,602 654,694 641,901 584,027 527,868
Short-term debt / total debt (%) 10.8 18.0 11.9 19.4 11.7
Net debt / EBITDA LTM 1.44 1.90 1.60 1.19 0.73

The Group’s diversified debt portfolio includes syndicated and bilateral loans, bonds and other instruments. The Group’s net debt went down by 9.6% to ₽ 527.87 bn. Net debt / EBITDA decreased by 0.46 pp to 0.73x.

The average debt maturity went up from 3.6 years as at 31 December 2017 to 3.84 years as at 31 December 2018. The average interest rate increased from 5.54% as at 31 December 2017 to 6.29% as at 31 December 2018.


The Group’s net debt (₽ bn) and net debt / EBITDA

Adjusted EBITDA (₽ bn)

Adjusted ROACE  (%)