Consolidated Statement of Cash Flows

Currency – ₽ millions

Notes Year ended 31 December 2018 Year ended 31 December 2017
Cash flows from operating activities
Profit before income tax 480,122 325,200
Adjustments for:
Share of profit of associates and joint ventures 13 (90,704) (45,504)
Net foreign exchange loss / (gain) 29 33,558 241
Finance income 30 (7,506) (10,098)
Finance expense 31 21,476 25,127
Depreciation, depletion and amortisation 11, 12 175,451 140,998
Other non-cash items 12,386 3,355
Operating cash flow before changes in working capital 624,783 439,319
Changes in working capital:
Accounts receivable (10,661) 13,655
Inventories (27,688) (20,672)
Taxes receivable (33,855) (2,502)
Other assets (4,339) (1,752)
Accounts payable 51,826 33,002
Taxes payable 13,175 15,600
Other liabilities 11,868 15,478
Total effect of working capital changes 326 52,809
Income taxes paid (61,157) (36,530)
Interest paid (46,492) (39,449)
Dividends received 20,063 5,551
Net cash provided by operating activities 537,523 421,700
Cash flows from investing activities
Acquisition of subsidiaries, net of cash acquired (920) -
Acquisition of investments in joint ventures (440) (8,345)
Disposal of investments in joint ventures - 476
Bank deposits placement (640) (8,462)
Repayment of bank deposits 7,350 2,529
Acquisition of other investments (70) -
Proceeds from sales of other investments - 670
Short-term loans issued (143) (200)
Repayment of short-term loans issued 218 33,295
Long-term loans issued (984) (1,875)
Repayment of long-term loans issued 12,490 13,048
Purchases of property, plant and equipment and intangible assets (370,067) (357,080)
Purchases of oil and gas licences (5,130) (10)
Proceeds from sale of property, plant and equipment, intangible assets 4,413 2,210
Proceeds from sale of other non-current assets - 1,706
Interest received 18,885 9,149
Net cash used in investing activities (335,038) (312,889)
Cash flows from financing activities
Proceeds from short-term borrowings 442 2,210
Repayment of short-term borrowings (220) (9,207)
Proceeds from long-term borrowings 366,102 354,160
Repayment of long-term borrowings (360,840) (343,607)
Transaction costs directly attributable to the borrowings received (158) (260)
Dividends paid to Gazprom Neft shareholders (70,774) (50,382)
Dividends paid to non-controlling interest (11,864) (2,542)
Proceeds from sale of non-controlling interest in subsidiaries 22,348 -
Repayment of finance lease liabilities (1,579) (893)
Net cash used in financing activities (56,543) (50,521)
Increase in cash and cash equivalents 145,942 58,290
Effect of foreign exchange on cash and cash equivalents 11,035 (1,303)
Cash and cash equivalents as of the beginning of the period 90,608 33,621
Cash and cash equivalents as of the end of the period 247,585 90,608