Production and operating expenses
|Item||2014||2015||2016||2017||2018||∆ 2018/2017 (%)|
|₽ per toe||n/a||n/a||1,782||1,767||1,726||(2.3)|
|$Translated to $ at the average exchange rate for the period. per boe||n/a||n/a||3.63||4.13||3.76||(9.0)|
|Consolidated subsidiaries in Russia||63,955||72,854||80,392||85,898||85,135||(0.9)|
|₽ per toe||n/a||n/a||1,647||1,653||1,579||(4.5)|
|$ per boe||n/a||n/a||3.35||3.86||3.44||(10.9)|
| Including: |
|₽ per toe||1,472||1,582||1,692||1,812||1,757||(3.0)|
|$ per boe||5.22||3.54||3.44||4.24||3.82||(9.9)|
|₽ per toe||n/a||n/a||1,470||1,242||1,256||1.1|
|$ per boe||n/a||n/a||2.99||2.90||2.73||(5.9)|
|Consolidated subsidiaries outside Russia (including PSA) PSA refers to production sharing agreement.||4,323||9,426||9,655||8,381||9,311||11.1|
|₽ per toe||n/a||n/a||4,144||3,059||2,975||(2.7)|
|$ per boe||n/a||n/a||8.43||7.15||6.47||(9.5)|
|₽ per toe||1,691||1,787||1,924||2,061||2,232||8.3|
|$ per boe||6.01||4.00||3.92||4.82||4.86||0.8|
|Refining expenses at own refineries||26,510||30,724||30,619||31,191||32,251||3.4|
|₽ per tonne||765||882||893||966||920||(4.8)|
|$ per barrel||2.72||1.97||1.82||2.26||2.00||(11.5)|
|Refining expenses at joint ventures Refining expenses at joint ventures are based on processing agreement.||14,145||14,648||12,453||12,259||12,496||1.9|
|₽ per tonne||1,602||1,778||1,639||1,568||1,590||1.4|
|$ per barrel||5.69||3.98||3.34||3.67||3.46||(5.7)|
|Lubricants and packaged products production expenses||5,567||8,177||10,060||11,868||14,172||19.4|
|Transportation to refineries||26,234||27,541||29,561||29,265||32,950||12.6|
|Other operating expenses||15,653||35,082||12,404||20,110||23,909||18.9|
Upstream expenses include costs attributable to raw materials and supplies, equipment maintenance and repair, wages and salaries, fuels and lubricants, electricity, oil recovery activities and other similar costs at the Group’s upstream facilities.
A 4.5% decrease y-o-y in upstream expenses per toe (₽ per toe) at the consolidated subsidiaries in Russia was primarily driven by the reduction in brownfield expenses by 3% y-o-y due to cost-cutting efforts:
- shutdown of low-margin wells (low well flows and high watercut);
- decreased workover activities.
Upstream expenses per boe ($ per boe) at the consolidated subsidiaries outside Russia went down by 9.5% y-o-y due to the increased production in Iraq. Upstream expenses per boe for joint operations increased by 8.3% y-o-y primarily due to the production cut in line with the OPEC deal.
Refining expenses at own refineries include costs attributable to raw materials and supplies, equipment maintenance and repair, wages and salaries, electricity and other similar expenses.
Refining expenses per tonne at own refineries went down by 4.8% due to:
- throughput growth;
- cost-cutting initiatives (upgrade of facilities, optimisation of additives and energy costs).
Unit refining expenses at joint ventures added 1.4% y-o-y due to the increased processing expenses (launch of new refining units and increased natural gas costs).
Lubricants production expenses went up by 19.4% y-o-y caused by higher production volumes, enhanced product range focused on premium lubricants and higher purchased materials costs (including those of additives). Transportation to refineries expenses went up by 12.6% y-o-y due to higher crude oil supplies to refineries. Other operating expenses increased y-o-y in line with other revenue growth.
Selling, general and administrative expenses
Selling, general and administrative expenses include distribution costs, retail business expenses, remunerations, wages and salaries (excluding remunerations, wages and salaries at upstream subsidiaries and own refineries), social payments, insurance, legal, consulting and audit services, and other expenses.
Selling, general and administrative expenses went up by 7.7% y-o-y following:
- higher selling expenses due to the growth of premium sales;
- higher expenses at foreign subsidiaries due to the rouble depreciation.
Transportation expenses relate to crude oil and petroleum products transportation to final customers, including pipeline, and railway transportation, sea freight, handling operations, and other transportation costs. Transportation expenses increased by 3.7% y-o-y due to stronger sales of petroleum products.
Depreciation, depletion and amortisation
Depreciation, depletion and amortisation include depletion of crude oil and gas assets, depreciation of other items of PP&E and impairment of crude oil assets. Depreciation, depletion and amortisation increased by 24.4% y-o-y due to higher value of assets subject to depreciation and amortisation associated with the investment programme and increased production at the Novoportovskoye and Prirazlomnoye fields and in Iraq.
|Tax||2014||2015||2016||2017||2018||∆ 2018/2017 (%)|
|Mineral extraction tax (MET)||236,027||256,477||237,300||329,579||487,492||47.9|
|Social security contributions||11,886||15,599||18,530||20,433||22,113||8.2|
Taxes other than income tax grew by 32.6% y-o-y. MET increased by 47,9% due to higher crude oil prices and adjustment ratio. Excise tax went down by 1.1% following the reduction of excise rates since June 2018.