The expected consolidated revenue of Transneft for 2020 is RUB 951 billion.
The dynamics of the Company’s key financial performance indicators has been significantly affected by the coronavirus pandemic, cuts in the volumes of crude oil produced in Russia in accordance with the OPEC+ agreement, and, as a result, smaller volumes of crude transported via the Transneft system.
The financial performance in 2020 was also influenced by a combination of great results for the initial 4 months of 2020 and way lower performance indicators after the agreement within OPEC+ took effect on 1 May 2020.
In September 2020, the Company’s annual general meeting of shareholders decided to adopt to allocate RUB 84.2 billion for payment of dividends for 2019, which is 8% more than for 2018. The dividends were paid out in November 2020.
In 2021, the Company expects a gradual easing restriction on volumes of crude produced in Russia within the framework of the OPEC+ agreement, followed by a respective increase in oil transportation volumes as compared to the end of 2020. But in view of the fact that the said restrictions remain imposed throughout the whole year (unlike 2020, when they were in force from May to December), the planned transportation volumes will be somewhat lower as compared to 2020.
Yet given the indexation of Transneft tariffs and higher revenues from crude oil sale to China, the planned level of the Company’s revenue is going to be 4% higher this year in comparison with the previous year.
In 2021, Transneft Group plans to extinguish exchange bonds worth RUB 52 billion in total, and to partially repay the loans of NCSP to the tune of USD 223 million, while maintaining moderate levels of debt and credit ratings at the level at or above the sovereign rating.
The Company plans to publish IFRS Consolidated Financial Statements for 2020 in late March of 2021.
Further recovery of global oil markets and higher crude oil production volumes in Russia would positively affect the dynamics of key operational and financial performance indicators of Transneft.