Transneft expects slight decrease in oil transportation YoY in 2021 due to OPEC+, but growth of revenue
MOSCOW. Jan 13 (Interfax) - PJSC Transneft expects its consolidated revenue for 2020 to total 950.8 billion rubles, the oil pipeline monopoly said in a statement.
The statement said that the coronavirus pandemic, reduction of oil production volumes in Russia in accordance with the OPEC+ agreement, and, consequently, of oil transportation via the Transneft system had significantly affected the trend of the company's key financial indicators.
In 2021, the company expects gradual lifting of the restrictions on oil production in Russia in the framework of the OPEC+ agreement with a corresponding increase in volumes of oil transportation compared to the level at the end of 2020. "However, due to the fact that these restrictions will apply for the whole year - compared to the period from May to December in 2020 -, target transportation volumes will decrease slightly compared to the level of 2020," it said. The company thus plans to transport 439.1 million tonnes of oil compared to 442.3 million tonnes in 2020, and 36.3 million tonnes of oil products against 37.9 million tonnes in 2020.
At the same time, given indexation of PJSC Transneft's tariffs and an increase in the amount of revenue from oil sales to China, the company's target revenue will increase 4% against the level of 2020, to 988.6 billion rubles, the statement said.
In 2021, Transneft Group plans to redeem exchange-traded bonds worth a total of 52 billion rubles and partially repay loans of PJSC Novorossiysk Commercial Seaport (NCSP) in the amount of $223 million, maintaining moderate debt burden indicators and credit ratings at a level no lower than the sovereign one, the statement said.
The company plans to finance capital investments for 2021 in the volume of 224.7 billion rubles against 208.3 billion rubles in 2020. At the same time, the statement clarified that excluding NCSP and the Novorossiysk Fuel Oil Terminal (NMT), the plan for 2020 had totaled 257.4 billion rubles and had been fulfilled at a level of 80.9%.
The company plans to publish consolidated financial statement according to International Financial Reporting Standards (IFRS) for 2020 at the end of March 2021.
"Further recovery of the situation on the oil market and oil production volumes in Russia will have a positive impact on the trend of PJSC Transneft's key operating and financial indicators," the statement said.