Bashneft sees adjusted net debt increase 70% in 9M to 127.6 bln rubles
MOSCOW. Nov 24 (Interfax) - Bashneft had adjusted net debt of 127.577 billion rubles as of end-Q3 2014, 70% more than the 74.375 billion rubles posted at the end of last year, the company said in its IFRS report.
"In assessing its ongoing concern status, the group has taken into account its financial position, anticipated future trading performance, its borrowings and other facilities and its capital expenditure commitments and plans, together with other risks facing the group. After making appropriate enquiries, the group considers that it has adequate resources to continue in operation existence for at least the next 12 months from the date of issuance of these interim condensed consolidated financial statements. Consequently, the group has determined that it is appropriate to adopt the going concern basis in the preparation of these interim condensed consolidated financial statements," the IFRS report says.
In late October, the Arbitration Court ruled in favor of the Russian Prosecutor General's Office's lawsuit against Sistema and compelled the corporation to return Bashneft shares belonging to Sistema and CJSC Sistema-Invest to the state. This decision has not entered into force, and according to Russian legislation, an appeal can be filed within one month, or until December 8, 2014. Sistema's board of directors released a statement on November 12 saying the court's decision would not be appealed. If an appeal is not filed within this timeframe, Sistema's controlling stake will be retuned to the Russian government.