Zarubezhneft shows high positive financial performance dynamics
For the purpose of improving the Company’s information disclosure level and compliance with the best international practices, Zarubezhneft JSC has published its audited consolidated financial statements reflecting the results of Zarubezhneft Group of Companies’ activities in 2019 prepared in accordance with the international standards (IFRS).
In the conditions of the global oil prices decrease trend the Group of Companies continues to demonstrate stable positive dynamics of its financial performance. The consolidated revenue from sales, including revenue from joint ventures, in 2019 amounted to 92.9 billion Rubles, which is almost 1 billion Rubles higher than in 2018. The net profit of Zarubezhneft Group of Companies in 2019 increased by 16% compared to 2018 and amounted to 13.5 billion Rubles.
The increase of the Group of Companies’ net profit also ensures growing dynamics of dividends payments to the state budget established by the Company’s shareholder – Federal Property Management Agency (Rosimuschestvo).
Such performance has been achieved owing to the high efficiency of production activities, including:
- Exploration wells drilling – the success rate exceeded 80%;
- Implementation of the measures program aimed at the base oil production stabilization;
- The reserves audit has confirmed - the 1Р (proved) reserves have increased by 13.7 MM tons of oil up to 74 800 thousand tons of oil which ensured the replenishment of oil production volumes by 140%. The 2P (proved + probable) reserves increment amounted to over 7 MM tons;
- Receipt of first income in the amount of 0.4 billion Rubles from participation in the Vietnamese Block 09-3/12, which was commissioned in 2019 within the record-breaking term – in only 3 years after the exploration program completion.
The past 2019 has become a period of significant changes, new projects and challenges for Zarubezhneft JSC. The Company’s developed is based on the “Expansion”, “Technological Leadership” and “Corporate Evolution” strategic focuses. Proceeding with the consistent implementation of the strategy for development at the foreign markets, Zarubezhneft JSC entered new projects in Uzbekistan and Egypt in 2019.
In general, Zarubezhneft has shown high efficiency level in 2019, and in 2020 the Company intends to continue its pace towards the achievement of goals declared in the Strategy by means of qualitative transformation and being guided by the best practices and market trends.