Russneft

RussNeft is one of the central players in the fuel market, one of the ten largest oil companies in the country. Its structure includes 21 mining enterprises, 2 refineries and its own sales network of gas stations located in 14 regions of Russia and the CIS. The geography of RussNeft's activities covers the Khanty-Mansi Autonomous Okrug, Yamalo-Nenets Autonomous Okrug, Tomsk, Ulyanovsk, Penza, Volgograd, Bryansk, Saratov, Kirov, Orenburg regions, Krasnodar Territory, the Republic of Udmurtia and the Republic of Belarus. The Company's head office is located in Moscow.

OAO NK RussNeft is a vertically integrated oil holding company and is one of the ten largest oil and gas companies in the country. The structure of RussNeft includes 24 mining enterprises located in 11 regions of Russia, the CIS and West Africa. The Company's head office is located in Moscow. The volume of oil production by the Company's enterprises is 13.6 million tons. The volume of gas production by the Company's enterprises is 2.150 billion m3. Total recoverable oil reserves of OAO NK RussNeft exceed 600 million tons. The total recoverable gas reserves of OAO NK RussNeft amount to 140 billion m3. The number of employees of the Company is more than 17 thousand employees. The Company's head office is located in Moscow.

Performance indicators

2023: 3.8 times profit growth to 31.79 billion rubles

At the end of 2023, Russneft received revenue of 238.83 billion rubles, which is 13.1% less than a year earlier. At the same time, the company's net profit soared 3.8 times and reached 31.79 billion rubles. Such data in accordance with Russian Accounting Standards (RAS) were published in mid-February 2024.

According to Interfax, citing materials from Russneft, in 2023 the company's cost of sales decreased by 21.7% compared to 2022, to 178.45 billion rubles. Gross profit increased by 29%, to 60.38 billion rubles.

source = RussNeft

The company's profit from sales in 2023 amounted to 40.45 billion rubles, which is 46% more than in 2022. The company's pre-tax profit in 2023 increased 3.4 times, to 42.15 billion rubles. The company's long-term obligations at the end of 2023 amounted to 115.55 billion rubles (at the end of 2022 - 98.61 billion rubles). Short-term liabilities increased to 126.3 billion rubles (at the end of 2022 - 111.4 billion rubles), according to the financial statements of Russneft.

By the end of 2023, Russneft was in sixth place in the ranking of the largest oil companies in terms of oil production in Russia. The company's assets are concentrated in Western Siberia, the Volga-Ural region and Central Siberia. According to Kommersant, by mid-2023, 12.05% of Russneft's authorized capital belonged to Bradinar Holdings, 7.7% to Mlada CJSC, 4.95% to IK OJSC ‹ Reliability of › ', 8.38% to PJSC "EsEfAi." Preferred shares of the company accounted for 25% of the authorized capital, 16.52% of which belongs to Trust Bank, and another 8.4% to VTB Bank. More relevant data on owners by mid-February 2024 has not been^[1]times

2022: Revenue growth by 19.8% to RUB 274.77 billion

At the end of 2022, Russneft raised 274.77 billion rubles, which is 19.8% more than a year earlier. The company's net profit during this time decreased 2.3 times - from 19.44 billion to 8.41 billion rubles. The oil company disclosed such data in mid-February 2023.

According to Interfax with reference to the Russneft report, the company's accounts receivable at the end of 2022 increased to 58.45 billion rubles from 54.14 billion rubles a year earlier. Accounts payable amounted to 102.82 billion rubles against 109.13 billion rubles as of December 31, 2021.

Russneft's revenue for the year rose by 19.8%

Oil production by Russneft in 2022 increased by 3.4% compared to 2021, to 6.91 million tons. 55% (3.8 million tons) of the oil produced by the company in 2022 was obtained through the development of hard-to-recover reserves.

Russneft's gas production in 2022 amounted to 2.22 billion cubic meters. m, of which 295 million cubic meters. m accounted for natural gas, and 1.927 billion cubic meters. m - for associated petroleum gas.

The president of the company, Yevgeny Tolochek, whose words are quoted in the newspaper, added that Russneft drilled and commissioned 97 wells in 2022. In addition, the company put 39 million tons of recoverable oil reserves on the balance sheet, and the resource base reached 626 million tons of oil.

Tolochek noted that Russneft's investment investments in 2022 amounted to about 26 billion rubles, an indicator EBITDA of about 54 billion rubles. According to him, the company's business plan for 2023 will be anti-crisis.

The situation in macroeconomics is difficult to predict. We must be prepared for new challenges. Some projects will have to be abandoned for now. At the same time, the potential for a future breakthrough should be preserved. We have chosen this development option, - said the president of Russneft (quoted by TASS).[2]

2020: Loss of 23 billion rubles

In 2020, Russneft has losses and layoffs. The company's revenue decreased by almost a third (to 133.2 billion rubles) and it received a loss of 23 billion rubles. The number of layoffs also doubled. In 2020, 554 people were reduced.

Oil production

2017:7 million tonnes (+ 0.2%)

For the period January-December 2017, oil production in Russia:

• Rosneft - 210.8 million tons (-0.3%),
• Lukoil - 82.2 million tons (-1.6%),
• Surgutneftegas - 60.5 million tons (-2.1%),
• Gazprom Neft - 59.9 million tons (+ 3.8%),
• TATNEFT - 28.9 million tons (+ 0.9%),
• Novatek - 11.8 million tons (-5.5%),
• Bashneft - 10.4 million tons (-3.4%),
• Russneft - 7.0 million tons (+ 0.2%),
• Neftegazholding - 2.1 million tons (-7.5%).

Gas production

2017: 2.4 bcm (-1.1%)

Gas production in Russia in 2017 amounted to 690.5 billion cubic meters. m (+ 7.9% vs 2016).

Production indicators of companies in 2017:

• Gazprom - 472.0 billion cubic meters. m (+ 12.4%) or 68.4% of total production in Russia.
• Rosneft - 47.5 billion cubic meters. m (+ 1.8%),
• Novatek - 45.5 billion cubic meters. m (-9.1%),
• Lukoil - 21.1 billion cubic meters. m (+ 14.9%),
• Gazprom Neft - 15.3 billion cubic meters. m (+ 13.4%),
• Surgutneftegas - 10.0 billion cubic meters. m (+ 2.0%),
• Russneft - 2.4 billion cubic meters. m (-1.1%),
• Neftegazholding - 1.4 billion cubic meters. m (+ 0.4%),
• TATNEFT - 0.9 billion cubic meters. m (-3.7%)^[3].

History

2024

Sale of assets in Azerbaijan

The oil company RussNeft has fully withdrawn from its production assets in Azerbaijan, which it owned since the early 2000s. This became known in July 2024.

According to RB, several foreign structures related to production projects in Azerbaijan were excluded from the list of RussNeft affiliates. Among them - British-Virgin GEA Holdings Ltd, Cayman Kura Valley Holding Company, Karasu Petroleum Company, Karasu Development Company, Azerbaijani Karasu Operating Company and Cyprus Global Energy Cyprus Limited.

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Freepik

RussNeft acquired its first assets in Azerbaijan back in 2006, concluding a production sharing agreement with the State Oil Company of Azerbaijan for the Govsany-Zykh block of fields. By 2015, the company, through the GEA holding, owned five companies developing 16 oil fields in the country. The reserves of these deposits at the end of 2016 were estimated at almost 20 million tons.

In 2019, RussNeft announced its intentions to produce about 500 thousand tons of oil in Azerbaijan annually, which amounted to about 7% of the group's total production. The Company also linked its long-term growth potential to the development of gas condensate reservoirs discovered in 2015.

After the withdrawal from Azerbaijani assets, RussNeft's production portfolio is concentrated exclusively in Russia - in the West Siberian, Volga and Central Siberian regions. In 2023, the company's oil production amounted to 6.43 million tons, which is 7% lower than in 2022. At the same time, 59% of production fell on deposits with difficult to recover reserves.

The withdrawal of RussNeft from foreign assets has little influence on the investment attractiveness of the company. FG Finam analyst Sergei Kaufman believes that the share of this business in total revenue was small, and if the enterprises were unprofitable, then the decision to withdraw can be considered positive.

In 2024, RussNeft plans to commission the Vostochno-Kamennoye field with recoverable reserves of more than 47 million tons. The company sets a goal of producing 7.2 million tons of oil annually by 2029.^[4]

Obtaining permission for Glencore to leave the company. Assets will be bought by Mikhail Gutseriev

The President Russia Vladimir Putin signed an order that allowed the Swiss trader Glencore to withdraw from the capital of Russneft. The corresponding document was published in early February 2024.

Allow transactions (operations) involving the direct and (or) indirect establishment, change, termination or encumbrance of ownership, use and (or) disposal of shares in the public joint-stock company Oil and Gas Company Russneft, the order with Putin's signature says.

source = RussNeft

At the time of the release of this document, Glencore, through its Rambero Holding structure, owned 23.46% of the authorized capital of Russneft (31.28% of ordinary shares). Glencore decided to withdraw from the capital of Russneft back in 2021, the deal was planned to be made in the first half of 2022, but the deadlines were postponed due to the start of a special military operation of the Russian Federation in Ukraine and the subsequent restrictions on the withdrawal of foreign capital from the Russian Federation.

According to the source of the source of Kommersant, issued by the President of the Russian Federation, permission to conduct operations allows you to credit funds to the accounts of the new owner and thus finalize the transaction on the sale of a foreign shareholder's share, as well as continue redomicilization (transfer of assets from one jurisdiction to another). The interlocutor believes that assets are bought by structures close to Mikhail Gutseriev.

Kira Vinokurova, partner of the Pen & Paper Bar Association, noted in a conversation with the publication that Russneft, unlike Mikhail Gutseriev, is not under Swiss sanctions.

Probably, the Swiss company demonstrated to the regulator that as a result of the sale of a stake in Russneft, there will be no economic benefit to Mikhail Gutseriev, says Vinokurova.

Order of the President of the Russian Federation On a Special Decision on Transactions (Operations) with Shares of RussNeft Oil and Gas Company

2022: Swiss trader Glencore announces exit from company capital

In February 2022, it became known that the Swiss trader Glencore, a long-term partner of Russneft, announced its withdrawal from the capital of the oil company. Its stake with an exchange value of almost 11 billion rubles. he can sell to the family structures of the founder of the oil company Mikhail Gutseriev.

2021

Mikhail Gutseriev transfers 37.15% of the company's shares to brother Sait-Salam

The founder of the Safmar group, Mikhail Gutseriev, left the capital of Russneft in August 2021 - all 37.15% belonging to him were transferred to his brother Sait-Salam Gutseriev.

Glencore refuses to buy the company's oil due to EU sanctions against Gutseriev

In July 2021, international trader Glencore refused to acquire July oil shipments from Russneft due to EU sanctions against Gutseriev. From the July plan for the sea export of raw materials of Russneft, the Siberian Light cargo with transshipment from Novorossiysk on July 10-11 was canceled, while the batch of the main Russian grade Urals with shipment from Primorsk on July 28-29 instead of Glencore was sold to the trading company Petraco. The July oil export plan from the ports envisaged the export of 180,000 tons of raw materials from Russneft's resources: 80,000 tons of Siberian Light grade from Novorossiysk and 100,000 tons of Urals from Ust-Luga.

Glencore, one of Russneft's biggest lenders, typically acquires the company's export volumes under a long-term contract.

2020

Limited default

In August 2020, Russneft of billionaire Mikhail Gutseriev did not make payments on a debt of $46 million, which matured in the first and second quarters.

The company, which produces 7-8 million tons per year tons per year, included by the government in the list of backbone oil and gas corporations, is in a state of "limited default," says Moody's.

In the IFRS report for the first half of 2020, Russneft announced that it was negotiating with the creditor bank on debt restructuring, including a possible change in the payment schedule.

VTB assigned the rights of claims on the Russneft loan to $1.17 billion to Qatari CQUR Bank

In August 2020, VTB Bank assigned the rights of claims on the Russneft loan to $1.17 billion to the Qatari bank CQUR Bank, follows from the report of the oil company.

VTB subsidiary received 8.48% of the company's shares

In February 2020,  VTB's subsidiary Business Finance received 8.48% of the oil company Russneft (part of Mikhail Gutseriev's Safmar group). At the same time, Trust Bank (owned by the Central Bank) reduced its share of preferred shares of the company by the same amount - from 24.99 to 16.52%.

2003: Glencore finances Russneft to buy new fields and gains stakes in its subsidiaries

Glencore had only a stake in the small Nobel Oil, which produces oil in the north of the Komi Republic: the Swiss company was afraid to invade this dangerous industry of the Russian economy for foreign investors. But in 2003, Glencore allocated to the owner of the Russneft oil company Mikhail Gutseriev, according to estimates, at least $300 million for the purchase of new fields, receiving in return from 40% to 49% in three production subsidiaries of the oil company: Varioganneft, Ulyanovskneft and Nafta-Ulyanovsk.

Why? The company needed new oil, says one of Forbes' interlocutors in the Moscow office of Glencore (2007). The company has lost supplies, Yukos"near-state" oil workers prefer to deal with the trading company Gunvor, Gennady Timchenko an old acquaintance of the president... Putin According to the manager of the Moscow office of Glencore, the Swiss company does not interfere in the management of Russneft, does not claim dividends, content only with the fact that all the company's export oil passes through Glencore (Russneft has been exporting about 66% of oil produced in recent years worth about $2.5 billion a year).

Investments turned out to be really risky: in November 2006, the Prosecutor General's Office opened criminal cases on the fact of illegal entrepreneurship against several subsidiaries of NK Russneft, accusing them of tax evasion, and in January 2007 a criminal case appeared on the fact of tax evasion by Russneft itself. Law enforcement agencies were charged with tax evasion and illegal entrepreneurship and Gutseriev. "Gutseriev promised to solve everything," admitted an employee of the Moscow office of Glencore even before the latest events, "but there are rumors that everything can be sold to some state-owned company."

It seems that Glencore's role in Russian oil exports seriously worries the company's management. "In 2006, Glencore transported about 34 million tons of oil and petroleum products from Russia," said Lottie Grenacher, a spokeswoman for the company. In addition to Russneft, Glencore sells oil from Tatneft, Bashneft, TNK-BP, as well as a number of small companies, she added.

Times have changed. By 2007, in order to get raw materials for export, you need to negotiate not with the directors of the plants. With all its gigantic resources and capabilities, Glencore cannot compare with the country's main oil trader during this period - Gunvor, controlled by President Putin's former colleague Gennady Timchenko, which sells, according to estimates, from 70 million tons to 80 million tons of Russian oil per year for $32-37 billion (for reference: all Russian exports in 2006 - 248 million tons).

"Glencore are foreigners, and from a certain point it ruined their lives," says the manager of one of the competing firms. - They have exits to Polyanka (street in Moscow, where the main office of Transneft is located. - Forbes), but above - no^[5].

Notes