Tatneft doubles IFRS net profit to 35.6 bln rubles in Q1, above forecast
MOSCOW. June 8 (Interfax) - Tatneft doubled net profit to International Financial Reporting Standards (IFRS) year-on-year in Q1 2017 to 35.6 billion rubles, a report from the oil company said.
Analysts surveyed by Interfax had forecast a net profit of 32.9 billion rubles.
EBITDA increased 69.8% to 51.9 billion rubles, beating the consensus forecast of 48.3 billion rubles.
Revenue was up 37.6% to 166.4 billion rubles.
Net debt was 20.1 billion rubles in Q1, up from 13.2 billion rubles at the end of Q1 2016.
Free cash flow increased almost 2.3-fold to 18.9 billion rubles.
"Higher net revenues on non-banking activities in the current period, partly offset by an increase in mineral extraction tax expense were the main factors behind an increase in our profit compared to the first quarter of 2016," the company said.
At the same time, the growth in revenue compared to Q4 2016 and Q1 2016 was mainly due to an increase in oil sales. Crude oil sales including related export duties rose 53.7% year-on-year to 91.6 billion rubles, petroleum product sales - 26.7% to 59.2 billion rubles, petrochemical segment sales - 22% to 9.3 billion rubles and tyre sales - 22.3% to 8.9 billion rubles.
Tatneft boosted exports in Q1, exporting around 70% of all oil sold compared to 59% in Q4 2016 and 58% in Q1 2016. Export duties increased 55.4% year-on-year due to the growth in exports and an increase in the average rate of export duties as oil prices rose. Tatneft exported 1.33 million tonnes of refined products, including 31,000 tonnes of purchased refined products, in Q1 2017, compared with 1.267 million tonnes in Q4 2016 and 1.24 million tonnes in Q1 2016.
Tatneft exported around 60% of its oil via the Druzhba pipeline compared to 64% in Q4 2016 and 59% in Q1 2016, mainly to Poland, Germany and Slovakia. Tatneft shipped 5% of its oil via Russian Black Sea ports compared to 3% in Q4 2016 and 11% in Q1 2016, and 35% (33%, 30%) through Russian Baltic Sea ports, mainly Primorsk.