Transneft, the world's largest oil pipeline company, has published consolidated financial results under IFRS for Q3 2019 and the nine months of 2019 in the For Investors and Shareholders section of its official website.
The key financial performance indicators of Transneft Group in the third quarter and the nine months of 2019, as compared to the similar period last year, were largely influenced by inclusion of NCSP Group’s performance results, including NCSP subsidiaries, in the consolidated data of Transneft Group in view of Transneft having acquired a majority interest in this company in September 2018.
The revenue of Transneft Group for the nine months of 2019 went up by RUB 77 billion or 11%, mainly due to the inclusion of NCSP Group’s performance indicators and growing revenues from oil transportation services.
Transneft Group's EBITDA for nine months of 2019 amounted to RUB 377 billion, up RUB 62 billion or 20% year-on-year.
The profit due to the shareholders of Transneft for the nine months of 2019 amounted to RUB 144 billion which is RUB 27 billion or 16% less than for the nine months of 2018, mainly because of the following isolated events:
- reflected for the nine months of 2018 was the revenue from reappraising the already existing stake in NCSP to the fair value, as of the date of acquiring the majority interest, to the tune of RUB 25 billion;
- reflected for the nine months of 2019 was the profit from NGT sale to the tune of RUB 16 billion and a reserve to indemnify consignors for property damages caused by the incident of off-spec crude fed to the Druzhba oil trunk pipeline system in April 2019, to the tune of RUB 23 billion.
The free cash flow for the nine months of 2019 has grown by 54% to RUB 48 billion. The increase is mainly caused by NCSP Group’s performance and the contraction of capital investment financing of the Transneft segment by RUB 8 billion.
The total debt as of 30 September 2019 decreased by 12% compared to the figure as of 30 September 2018 and amounted to RUB 629 billion, mainly due to the planned repayment of Transneft's corporate bonds.
For more detailed analysis of the Group’s financial standing and performance as well as its condensed consolidated interim financial statements in accordance with IFRS for the nine months ending on 30 September 2019 see here and here.