27 Jun 2017 16:44

RussNeft plans to reach debt/EBITDA ratio of 2.2 by 2021

MOSCOW. June 27 (Interfax) - RussNeft plans to reach a debt/EBITDA ratio of 2.2x by 2021, RussNeft Senior Vice President for Economics and Finance Olga Prozorovskaya said at the oil company's annual shareholders meeting.

"We consider our targeted leverage to be 2.2x EBITDA and we'll reach that level by 2021. Double EBITDA will be a very comfortable model for the company," she said.

Debt/EBITDA is currently around 3x.

EBITDA rose 21% to 25.2 billion rubles in 2016 and the EBITDA margin went up 4 pp to 24%.

The company prepaid $1 billion debt, $300 million of it in December 2015, enabling it to reduce leverage to a more comfortable level.

Net debt was 82 billion rubles at end-2016.