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Economy/Business
12 November 2021, 19:38

Bashneft revenue grew by 43% in first nine months

Bashneft has disclosed its financial results for nine months of operation in 2021 in accordance with International Financial Reporting Standards (IFRS). The company's revenue for the nine months of 2021 increased by 43% compared to the same period last year and amounted to 595 billion rubles.

Bashneft (part of NK Rosneft) demonstrates rapid growth in financial performance for the 9 months of 2021. The company's net profit reached 58.3 billion rubles - an increase of 14.6 times compared to last year's same period.

The financial efficiency indicator EBITDA increased 4.5 times compared to the same period in 2020 and amounted to 107.8 billion rubles.

Bashneft's net financial debt fell by 5%. Industry analysts note that such results were achieved due to the weakening of restrictions on oil production within the OPEС+, the growth of prices for oil and oil products.

The work carried out by the company's top management in 2020, which was challenging for the entire oil and gas industry, also significantly impacted the results obtained. Thus, the decisions of the Bashneft management to increase investments in strengthening the well stock and resource base have shown high efficiency. This made it possible to increase production promptly after the restrictions were lifted.

Experts also note the active modernization of the company's Ufa oil refining complex in the previous period, which helped to ensure a 53% increase in refining in the third quarter of 2021. The measures were timely and also contributed to the growth of financial indicators in 2021.

Bashneft's capital expenditures for the first nine months of 2021 were kept at a high level and amounted to 42.9 billion rubles.

The company paid great attention to increasing the efficiency of oil production. Sinking in operating drilling amounted to 397 thousand meters for 9 months of 2021. The number of wells during this time increased by 26% - up to 185, of which 165 have horizontal completion.

As for refining, due to the oil refining complex modernization, the company retained its leading positions in the industry in such important indicators as the refining depth and the yield of light oil products: 85.7% and 66.5%, respectively.

According to the company's report, Bashneft has reduced net financial debt in 9 months of 2021 by 5%. Analysts of the international rating agency Fitch Ratings predict a decrease in the company's debt burden by more than four times by the end of 2022. Expert RA has given Bashneft a ruAAA rating with a stable outlook (highest rating), having noted that the company is a strategically significant asset for Rosneft.

Effective work in all areas of activity amid improving macroeconomic conditions allowed Bashneft to significantly improve its key financial and economic indicators and ensure the company's main production, environmental and social programs.

Author:Tatyana Aksyutina
Translated by:Tatyana Aksyutina
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