Neftisa

JSC NK Neftisa is a Russian oil company as part of the industrial and financial group Safmar"."

The company was established in 2008. The corporate structure of JSC NK Neftisa includes more than 20 companies, of which 15 are producers, which are united into 8 operator groups. The main activities of the group companies are the search and exploration of hydrocarbon fields, oil production and sale. The geography of activities covers several large regions of the Russian Federation: Samara, Novosibirsk and Tyumen regions, Khanty-Mansi Autonomous Okrug, Perm Territory, Udmurt Republic and Komi Republic.

Performance indicators

2023: Profit - 3.03 billion rubles

At the end of 2023, the Neftisa oil group of Mikhail Gutseriev received a net profit of 3.03 billion rubles. For comparison, a year earlier, the company suffered 7.08 billion rubles in losses. This is stated in the financial report submitted on March 20, 2024.

Profit in 2023 turned out to be the maximum since 2018, when Neftisa received 35.3 billion rubles of net profit (of which almost 30 billion rubles were revenues from participation in other organizations). According to Interfax, referring to the statements of the general director of the oil group Andrei Zarubin, the reduction of discounts on Urals crude oil, an increase in the volume of oil sold, as well as a number of other factors had a positive impact on the performance indicators.

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Neftisa's revenue in 2023 reached 127.6 billion rubles: this is 37.6% more than in the previous year. Other income rose on an annualized basis from 64 thousand rubles to 2.39 billion rubles: of which about two-thirds (65.5%) were income from positive exchange rate differences - 1.56 billion rubles. In addition, the company restored part of the provision for impairment of financial investments in the amount of 820.4 million rubles. The report also said that the cost of production rose in 2023 by 43% - to 118.4 billion rubles. At the same time, gross profit amounted to 9.21 billion rubles, which is 7.3% less than in 2022.

According to Zarubin, the implementation of a multi-year program to reduce production costs contributed a lot to improving financial results. It includes the introduction of neural network technologies and robotic development tools. Another factor in revenue growth was the beginning of the consolidation of extractive assets at headquarters. It is noted that Neftis has one of the lowest unit cost of liquid production in the entire Russian oil industry.^[1]

2022: Record losses - 7.8 billion rubles

In 2022, the Neftisa oil group, founded by Mikhail Gutseriev, raised 92.75 billion rubles, which is 11.5 times more than a year earlier. Net loss reached 7.08 billion rubles against 312.7 million rubles of net profit in 2021. Such data were released by the company in March 2023.

As explained in Neftis to Interfax, a negative financial result with a positive dynamics of revenue indicators is associated with the formation of a provision for impairment of one of the assets:

Profit from sales increased by 37% compared to 2021 and amounted to 5 billion rubles, income tax amounted to 1.6 billion rubles. As a result of the temporary suspension of one of the subsidiaries, the statements for 2022 also reflected the necessary reserves that affected the final "paper" negative financial result of 2022. Excluding the accrued provision, net profit amounted to 1.8 billion rubles.

Excluding the accrued reserve, Neftisa's net profit would have amounted to 1.8 billion rubles

According to the explanations to the report, we are talking about a reserve for impairment of shares of JSC NovosibirskSkneftegaz (NNG) - 4.748 billion rubles - and for a loan of NNG in the amount of 1.14 billion rubles. The reporting of the latter clarifies that at the end of 2022 the company decided to temporarily decommission production assets.

Oil production has been temporarily stopped since December 2022. As a result of this factor, as of 31.12.2022, the company tested for impairment of assets of the Verkh-Tarsky, East-Tarsky and Maloichskoye fields, as a result of which a loss (in the NNG RAS - IF report) was recognized from impairment of these assets in the amount of 922.856 million rubles, the report said.

According to the company's website, Neftisa produced 49.6 thousand tons of oil in 2022 (0.8% of the group's total production), proven recoverable reserves amount to 16.86 million tons.^[2]

History

2021: Sait-Salam Gutseriev becomes the main owner of the company

Mikhail Gutseriev, who fell under EU sanctions in June 2021, replaced the main beneficiary of the Neftisa oil company. He became his brother - Sait-Salama Gutserieva, he also headed the board of directors of the company.

Neftisa belongs to the Cypriot Dolmer Enterprises, and that, according to the Cypriot register, belongs to the Cypriot Doneler Finance (75%) and Ramore Holdings from the British Virgin Islands. Doneler has three ultimate beneficiaries: Sait-Salam Gutseriev (91%), as well as Mikhail Gutseriev and his son Said (a total of 9%). Thus, Sait-Salam Gutseriev in Neftis now owns about 68% through Doneler, and Mikhail Gutseriev and his son - about 7%.

Gutseriev is trying to reduce the impact of EU sanctions on companies where he was a shareholder. For example, Russneft attracted jurkonsultants who stated that Mikhail Gutseriev had no control over the oil company according to the norms of EU sanctions regulation. The conclusion was approved on July 13, 2021 by the board of directors, which includes representatives of a large shareholder of Russneft and its partner, the Swiss trader Glencore.

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