IN 2016 RUSSNEFT POSTS IFRS PROFIT OF RUB 14.9 BILLION AFTER LOSS A YEAR EARLIER
Moscow. RussNeft earned RUB 14.9 billion of net profit under IFRS in 2016 against a RUB 27. 65 billion net loss a year earlier, the company`s report states.
EBITDA of the Company grew by 21%, up to RUB 25.2 billion. EBITDA margin also gained 4 percentage points to 24%.
The Company early repaid $1 billion of its loan (including $300 mln. in December, 2015), resulting in reduction of its leverage to more comfortable level.
Net debt amounted to RUB 82 billion as of the end of 2016, while net debt-to-EBITDA ratio was 3.3.
Last year revenue of RussNeft remained at the level of 2015 that was RUB 105 billion.
Cost of sales decreased by 6% to RUB 74.4 billion.
Gross margin of RussNeft increased 1.2 - fold in 2016 to RUB 30. 6 billion.
Restructuring of debt to VTB enabled the Company to free up its financial resources to be used in its renewed investment programme aimed at increasing the share of high-margin oil in overall production. Therefore, capital expenditures in 2016 grew by 39% year-on-year, to RUB 17.3 billion.
The 2016 growth of capex was essentially driven by increase in production drilling. The drilling meterage was 371 thousand m as of the end of 2016, which is a third more than in 2015.