Bashneft Group finished the year of 2012 with net income of 52 billion rbl

Bashneft Group, which comprises JSOC Bashneft, its subsidiaries and affiliates finished the year of 2012 with net income 52,088 million roubles, which is 4.5% higher than in 2011.

It is said in the official report of the company on financial results according to IFRS.

The Group’s revenue from sales increased by 9.5% year-on-year and amounted to 532,502 million roubles.

EBITDA added 5.2% and reached 98,690 million roubles.

The Group explains the growth of revenue, EBITDA and net income by an increase in oil production and exports, high prices for oil and petroleum products on the global market, growing sales in premium market segments and some other factors.

In 2012 Bashneft’s capital expenditure added 23.1% (increasing to 30,789 million roubles), primarily in the upstream segment and in the sphere of refinery upgrades.

“Despite the introduction of the 60/66 system, which had an overall negative impact on Bashneft, in 2012 the Group successfully continued implementing its development strategy and achieved the best financial results in its history due to an increase in efficiency in all key business areas,” Bashneft’s President Alexander Korsik said.

In 2012 Bashneft’s average daily oil production increased again by 1.9% compared to 2011, hitting a 15-year record high (307.9 thousand bbl/d).

In 2012 Bashneft produced 15,437 thousand tons of oil and plans to maintain this level in the coming years.

Oil refining depth totaled 84.9%, while the share of light products amounted to 59.7%.

In 2012 sales of petroleum products and petrochemicals fell by 0.5% to 19,3 thousand tons. At the same time, Bashneft increased its share in the retail and small wholesale segment, implementing the strategy for developing its marketing channels in order to supply products to consumers. The Group boosted its retail sales by 33.3% to 1,364 thousand tons.