Our success in 2013
Annual report JSOC Bashneft 2013
8
Annual report JSOC Bashneft 2013
9
Competitive advantages that ensure we achieve our potential
Competitive advantages that ensure we achieve our potential
Consistently high growth rates in oil production and high quality
resource base
Technologically advanced refining operations
and efficient sales network
Outstanding shareholder value thanks to strong financial indicators
Consistently successful track record of adopting best practices
in corporate governance
Adherence to the high HSE standards
· Sustainable growth in oil production and positive reserve replacement ratio year-on-year
· Successful adoption of the latest exploration and oilfield development technologies, ensuring maximum oil output
at mature fields
· Successful track record of implementing complex projects on schedule and within budget (developing the Trebs and
Titov fields)
· Systematic approach to developing our resource base, which ensures high reserve replacement ratio and guarantees
resource base growth potential thanks to wide-scale geological exploration work in key regions
· Developing expertise in overseas project management
· Consistently high financial results, including revenue and EBITDA
· Highest returns in the oil and gas sector due to control over operating expenses and disciplined approach to M&A
deals and capital investment
· Dividend policy appealing to shareholders. The Boston Consulting Group rating listed the Company in the world’s top
10 companies in terms of shareholder return, and on top of the industry ranking of global oil companies with the high-
est total shareholder return
· Professional, experienced management team able to deliver high operational and financial results
· High standards of corporate governance, built in accordance with the best international practices
· Transparent corporate and ownership structures
· High business manageability and efficiency due to streamlined and focused business model of an integrated oil com-
pany
· Top management engaged in achieving the Company’s HSE leadership among Russia’s energy companies
· The only Russian company that is a member of the International Petroleum Industry Environmental Conservation
Association (IPIECA), member of the International Association of Oil and Gas Producers (OGP)
· Created and certified integrated management systems in the areas of occupational health and safety (OHSAS 18001)
and environment (ISO 14001)
· Implementing environmental protection projects that involve the application of the latest technological solutions from
world-leading companies (General Electric, BASF and others)
Key results of our activities
2011
2012
2013
change
2013/2012
Proved reserve replacement ratio, %
164%
123%
134% +11 p.p.
Oil production, mln tonnes
15.1
15.4
16.1
+4.1%
Oil production, kbpd
302
308
321
+4.4%
Refinery throughput, mln tonnes
19.2
18.9
19.6
+3.9%
Nelson index, points
8.33
8.55
8.83
+0.28 p.
Retail sales of oil products, mln tonnes
1.0
1.4
1.4
+2.8%
Export of oil and petrochemical products, mln tonnes
9.2
8.6
9.4
+9.8%
Revenue, bln RUB
486.3
532.5
563.3
+5.8%
EBITDA, bln RUB
93.9
99.0
101.5
+2.5%
Capital expenditures, bln RUB
25.0
30.8
30.4
–1.1%
Net cash inflows from operating activities, bln RUB
65.6
71.1
82.7
+16.2%
Adjusted net debt, bln RUB
61.3
78.0
74.4
–4.7%
Adjusted net debt / EBITDA
0.7
0.8
0.7
Growth in price of ordinary shares
–6.1% +31.9% +13.5%
Market capitalisation, bln USD
8.23
12.58
13.16
+4.6%
Total shareholder return (TSR), %
8.7% 39.3% 26.1% –13.2 p.p.
Occupational injury rate
-
0.001218
0.00097
–20%
Oil production
Refinery throughput
16.1 mln tonnes
+4.1%
19.6 mln tonnes
+3.9%
9.4 mln tonnes
+9.8%
+5.8%
+2.5%
+16.2%
Export of oil
and petrochemical products
Revenue
EBITDA
Free cash flow
JSOC Bashneft produces and refines crude oil in Russia, sells oil and petroleum products on the domestic and
international markets, and is one of the Russia’s fastest growing vertically integrated oil companies.
Our business is focused on increasing the Group’s shareholder value.
Our mission is to to create energy for our stakeholders, with maximum efficiency, social responsibility and care for
the environment.
Our success in 2013
· Technologically well-equipped oil refining complex and the further roll-out of modernisation programmes in line
with modern efficiency standards
· Balanced marketing structure, development of a retail chain under a single corporate brand and of a system of
small-scale wholesale supplies to end customers
· Improving the quality of motor fuels produced with full transition to Euro-5 standard by 2016
