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PJSC Gazprom Neft (GAZ)

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Thursday 10 August, 2017

PJSC Gazprom Neft

IFRS for 2Q and 1H 2017

RNS Number : 7041N
PJSC Gazprom Neft
10 August 2017
 

Gazprom Neft Group

 

Interim Condensed Consolidated Financial Statements (unaudited)

 

As of and for the three and six months ended 30 June 2017 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

       


Gazprom Neft Group

Interim Condensed Consolidated Financial Statements (unaudited)

As of and for the three and six months ended 30 June 2017

 

 

Contents

 

 

 

Interim Condensed Consolidated Statement of Financial Position.......................................................... 2

Interim Condensed Consolidated Statement of Profit and Loss and Other Comprehensive Income…. 3

Interim Condensed Consolidated Statement of Changes in Shareholders' Equity.................................. 4

Interim Condensed Consolidated Statement of Cash Flows................................................................... 5

 

Notes to the Interim Condensed Consolidated Financial Statements                                                   

1.    General

2.    Summary of significant accounting policies

3.    Application of new IFRS

4.    New accounting standards

5.    Cash and cash equivalents

6.    Short-term financial assets

7.    Trade and other receivables

8.    Inventories

9.    Other taxes receivable

10.  Other current assets

11.  Property, plant and equipment

12.  Investments in associates and joint ventures

13.  Long-term financial assets

14.  Other non-current assets

15.  Short-term debt and current portion of long-term debt

16.  Trade and other payables

17.  Other current liabilities

18.  Other taxes payable

19.  Long-term debt

20.  Other non-current financial liabilities

21.  Finance lease

22.  Net foreign exchange (loss) / gain

23.  Finance income

24.  Finance expense

25.  Fair value measurement

26.  Commitments and contingencies

27.  Related party transactions

28.  Segment information

29.  Subsequent events

 

 

 


 

 




 Notes

 30 June 2017

 31 December 2016

 Assets






Current assets






Cash and cash equivalents


5

69,756

33,621


Short-term financial assets


6

42,405

42,113


Trade and other receivables


7

102,877

115,559


Inventories


8

89,257

100,701


Current income tax prepayments



5,698

10,353


Other taxes receivable


9

58,795

53,482


Other current assets


10

45,292

40,503


Total current assets



414,080

396,332


Non-current assets






Property, plant and equipment


11

1,878,857

1,726,345


Goodwill and other intangible assets



70,157

70,151


Investments in associates and joint ventures

12

218,017

201,548


Long-term trade and other receivables



4,363

5,129


Long-term financial assets


13

39,247

40,167


Deferred income tax assets



6,719

8,039


Other non-current assets


14

86,085

101,100


Total non-current assets



2,303,445

2,152,479


Total assets



2,717,525

2,548,811

 Liabilities and shareholders' equity






Current liabilities






Short-term debt and current portion of long-term debt

15

142,914

80,187


Current finance lease liabilities


21

1,369

-


Trade and other payables


16

172,190

95,624


Other current liabilities


17

28,876

28,680


Current income tax payable



4,671

2,296


Other taxes payable


18

67,128

67,259


Provisions and other accrued liabilities



14,847

15,406


Total current liabilities



431,995

289,452


Non-current liabilities






Long-term debt


19

532,380

596,221


Non-current finance lease liabilities


21

22,038

-


Other non-current financial liabilities


20

58,750

89,744


Deferred income tax liabilities



87,264

81,347


Provisions and other accrued liabilities



47,827

45,942


Other non-current liabilities



2,505

1,938


Total non-current liabilities



750,764

815,192


Equity






Share capital



98

98


Treasury shares



(1,170)

(1,170)


Additional paid-in capital



58,664

51,047


Retained earnings



1,337,091

1,276,210


Other reserves



45,822

33,955


Equity attributable to Gazprom Neft shareholders


1,440,505

1,360,140


Non-controlling interest



94,261

84,027


Total equity



1,534,766

1,444,167


Total liabilities and equity



2,717,525

2,548,811














A. V. Dyukov



A. V. Yankevich


Chief Executive Officer



Chief Financial Officer


PJSC Gazprom Neft



PJSC Gazprom Neft

 


 


 Notes

 3 months ended

30 June 2017

 3 months ended

30 June 2016

 6 months ended

30 June 2017

 6 months ended

30 June 2016

Sales


475,668

405,075

944,274

771,077

Less export duties and sales related excise tax


(34,476)

(33,352)

(71,917)

(69,402)

Total revenue from sales

28

441,192

371,723

872,357

701,675

Costs and other deductions






Purchases of oil, gas and petroleum products


(109,997)

(84,758)

(226,960)

(158,328)

Production and manufacturing expenses


(54,059)

(45,156)

(100,372)

(93,806)

Selling, general and administrative expenses


(24,237)

(25,999)

(47,948)

(50,421)

Transportation expenses


(34,744)

(31,820)

(71,394)

(66,735)

Depreciation, depletion and amortisation


(33,984)

(32,343)

(66,294)

(60,229)

Taxes other than income tax

18

(111,644)

(98,522)

(226,031)

(169,132)

Exploration expenses


(42)

(191)

(146)

(299)

Total operating expenses


(368,707)

(318,789)

(739,145)

(598,950)

Operating profit


72,485

52,934

133,212

102,725

Share of profit of associates and joint ventures

12

7,892

10,307

18,710

16,031

Net foreign exchange (loss) / gain

22

(7,477)

13,815

5,705

16,110

Finance income

23

2,713

2,717

5,226

5,264

Finance expense

24

(6,543)

(8,714)

(13,261)

(18,438)

Other loss, net


(2,513)

(11,393)

(3,379)

(12,153)

Total other (expenses) / income


(5,928)

6,732

13,001

6,814

Profit before income tax


66,557

59,666

146,213

109,539

Current income tax expense


(10,450)

(6,499)

(20,614)

(8,136)

Deferred income tax expense


(2,790)

(3,012)

(7,548)

(9,656)

Total income tax expense


(13,240)

(9,511)

(28,162)

(17,792)

Profit for the period


53,317

50,155

118,051

91,747

Other comprehensive income / (loss)






Currency translation differences


23,013

(14,399)

10,614

(28,769)

Cash flow hedge, net of tax


856

1,657

5,905

28,777

Other comprehensive income / (loss)


479

(27)

497

(81)

Other comprehensive income / (loss) for the period

24,348

(12,769)

17,016

(73)

Total comprehensive income for the period


77,665

37,386

135,067

91,674

Profit attributable to:






 - Gazprom Neft shareholders


49,316

48,854

111,269

90,395

 - Non-controlling interest

4,001

1,301

6,782

1,352

Profit for the period


53,317

50,155

118,051

91,747

Total comprehensive income / (loss) attributable to:





 - Gazprom Neft shareholders


64,652

40,898

123,136

98,834

 - Non-controlling interest


13,013

(3,512)

11,931

(7,160)

Total comprehensive income for the period


77,665

37,386

135,067

91,674

Earnings per share attributable to Gazprom Neft shareholders




Basic earnings (RUB per share)


10.45

10.35

23.58

19.16

Diluted earnings (RUB per share)


10.45

10.35

23.58

19.16

Weighted-average number of common shares
   outstanding (millions)


4,718

4,718

4,718

4,718







 



Attributable to Gazprom Neft shareholders




Share capital

Treasury shares

Additional paid-in capital

Retained earnings

Other reserves

Total

Non-controlling interest

Total
equity

Balance as of 1 January 2017

98

(1,170)

51,047

1,276,210

33,955

1,360,140

84,027

1,444,167

Profit for the period

-

-

-

111,269

-

111,269

6,782

118,051

Other comprehensive income









Currency translation differences

-

-

-

-

5,465

5,465

5,149

10,614

Cash flow hedge, net of tax

-

-

-

-

5,905

5,905

-

5,905

Other comprehensive income

-

-

-

-

497

497

-

497

Total comprehensive income for the period

-

-

-

111,269

11,867

123,136

11,931

135,067

Transactions with owners, recorded in equity









Dividends to equity holders

-

-

-

(50,388)

-

(50,388)

(1,697)

(52,085)

Transaction under common control (Note 20)

-

-

7,617

-

-

7,617

-

7,617

Total transactions with owners

-

-

7,617

(50,388)

-

(42,771)

(1,697)

(44,468)

Balance as of 30 June 2017

98

(1,170)

58,664

1,337,091

45,822

1,440,505

94,261

1,534,766

 

 


Attributable to Gazprom Neft shareholders




Share capital

Treasury shares

Additional paid-in capital

Retained earnings

Other reserves

Total

Non-controlling interest

Total
equity

Balance as of 1 January 2016

98

(1,170)

44,326

1,078,626

35,189

1,157,069

91,420

1,248,489

Profit for the period

-

-

-

90,395

-

90,395

1,352

91,747

Other comprehensive (loss) / income









Currency translation differences

-

-

-

-

(20,257)

(20,257)

(8,512)

(28,769)

Cash flow hedge, net of tax

-

-

-

-

28,777

28,777

-

28,777

Other comprehensive (loss)

-

-

-

-

(81)

(81)

-

(81)

Total comprehensive income / (loss) for the period

-

-

-

90,395

8,439

98,834

(7,160)

91,674

Transactions with owners, recorded in equity









Dividends to equity holders

-

-

-

(2,595)

-

(2,595)

(1,131)

(3,726)

Acquisition through business combination

-

-

(114)

-

-

(114)

112

(2)

Total transactions with owners

-

-

(114)

(2,595)

-

(2,709)

(1,019)

(3,728)

Balance as of 30 June 2016

98

(1,170)

44,212

1,166,426

43,628

1,253,194

83,241

1,336,435

 

 



 Notes

 6 months ended

30 June 2017

 6 months ended

30 June 2016

Cash flows from operating activities




Profit before income tax


146,213

109,539

Adjustments for:




Share of profit of associates and joint ventures

12

(18,710)

(16,031)

Gain on foreign exchange differences

22

(5,705)

(16,110)

Finance income

23

(5,226)

(5,264)

Finance expense

24

13,261

18,438

Depreciation, depletion and amortisation


66,294

60,229

Net impairment of receivables and other assets


-

10,962

Other non-cash items


2,644

539

Operating cash flow before changes in working capital


198,771

162,302

Changes in working capital:




  Accounts receivable


15,067

(26,198)

  Inventories


9,073

(539)

  Taxes receivable


(5,193)

(3,405)

  Other assets


(4,067)

6,014

  Accounts payable


3,682

21,919

  Taxes payable


(414)

23,158

  Other liabilities


(1,445)

(8,016)

Total effect of working capital changes


16,703

12,933

Income taxes paid


(14,835)

(12,166)

Interest paid


(20,283)

(19,248)

Dividends received


772

1,974

Net cash provided by operating activities


181,128

145,795

Cash flows from investing activities




Acquisition of subsidiaries, net of cash acquired


-

(738)

Acquisition of investments in joint ventures


(457)

-

Disposal of investments in joint ventures


476

-

Bank deposits placement


(417)

(20,110)

Repayment of bank deposits


1,071

68,549

Proceeds from sales of other investments


-

3,181

Short-term loans issued


-

(3,007)

Repayment of short-term loans issued


883

6,827

Long-term loans issued


(1,075)

(14,052)

Repayment of long-term loans issued


2,468

7,137

Purchases of property, plant and equipment and intangible assets

(154,235)

(166,398)

Proceeds from sale of property, plant and equipment and intangible

assets

194

503

Interest received


3,074

2,810

Net cash used in investing activities


(148,018)

(115,298)

Cash flows from financing activities




Proceeds from short-term borrowings


318

5,326

Repayment of short-term borrowings


(4,602)

(2,272)

Proceeds from long-term borrowings


158,239

41,603

Repayment of long-term borrowings


(149,820)

(103,761)

Dividends paid to Gazprom Neft shareholders


(2)

(3)

Dividends paid to non-controlling interest


(716)

(75)

Repayment of finance lease liabilities


(244)

-

Net cash provided by / (used in) financing activities


3,173

(59,182)

Increase / (decrease) in cash and cash equivalents


36,283

(28,685)

Effect of foreign exchange on cash and cash equivalents


(148)

(6,379)

Cash and cash equivalents as of the beginning of the period


33,621

114,198

Cash and cash equivalents as of the end of the period


69,756

79,134


1.       General

Description of business

PJSC Gazprom Neft (the "Company") and its subsidiaries (together referred to as the "Group") is a vertically integrated oil company operating in the Russian Federation, CIS and internationally. The Group's principal activities include exploration, production and development of crude oil and gas, production of refined petroleum products and distribution and marketing operations through its retail outlets.

The Company was incorporated in 1995 and is domiciled in the Russian Federation. The Company is a public joint stock company and was set up in accordance with Russian regulations. PJSC Gazprom ("Gazprom", a state controlled entity), the Group's ultimate parent company, owns 95.7% of the shares in the Company.

 

2.       Summary of significant accounting policies

Basis of presentation

The Group maintains its books and records in accordance with accounting and taxation principles and practices mandated by legislation in the countries in which it operates (primarily the Russian Federation). The accompanying Interim Condensed Consolidated Financial Statements were primarily derived from the Group's statutory books and records with adjustments and reclassifications made to present them in accordance with International Financial Reporting Standards ("IFRS").

The Interim Condensed Consolidated Financial Statements have been prepared in accordance with International Accounting Standard IAS 34 Interim Financial Reporting.

The Group does not disclose information which would substantially duplicate the disclosures contained in its audited Consolidated Financial Statements as of and for the year ended 31 December 2016, such as significant accounting policies, estimates and judgements, financial risk disclosures or disclosures of financial line items, which have not changed significantly in amount or composition. Management of the Group believes that the disclosures in these Interim Condensed Consolidated Financial Statements are adequate to make the information presented not misleading if these Interim Condensed Consolidated Financial Statements are read in conjunction with the Group's Consolidated Financial Statements as of and for the year ended 31 December 2016.

Subsequent events occurring after 30 June 2017 were evaluated through 09 August 2017, the date these Interim Condensed Consolidated Financial Statements were authorised for issue.

The results for the three and six months ended 30 June 2017 are not necessarily indicative of the results expected for the full year.

The Group as a whole is not subject to significant seasonal fluctuations.

Changes in significant accounting policies

Significant accounting policies, judgements and estimates applied while preparing these Interim Condensed Consolidated Financial Statements are consistent with those applied during the preparation of the Consolidated Financial Statements as of and for the year ended 31 December 2016, except for those described in the Application of new IFRS paragraph.

Foreign currency translation

 

The following exchange rates for Roubles to US dollars, EURO and Serbian Dinars applied while preparing these Interim Condensed Consolidated Financial Statements:

 


Reporting date spot rate


 30 June 2017

 31 December 2016

USD 1

59.09

60.66

EUR 1

67.50

63.81

RSD 1

0.56

0.52

 

 

3.       Application of new IFRS

The following standards or amended standards became effective for the Group from 1 January 2017:

The amendments to IAS 7 - Statement of Cash Flow (issued in January 2016 effective for annual periods beginning on or after 1 January 2017) require entities to provide disclosures that enable investors to evaluate changes in liabilities arising from financing activities, including changes arising from cash flows and non-cash changes. The Group will present the disclosure in the Consolidated Financial Statements as of and for the year ended 31 December 2017.

The amendments to IAS 12 - Income Taxes: Recognition of Deferred Tax Assets for Unrealised Losses (issued in January 2016 effective for annual periods beginning on or after 1 January 2017). These amandments did not have any material impact on the Group.

 

4.       New accounting standards

Certain new standards and interpretations have been issued that are mandatory for the annual periods beginning on 1 January 2018 or later, and that the Group has not early adopted.

IFRS 9 - Financial Instruments: Classification and Measurement (amended in July 2014 and effective for annual periods beginning on or after 1 January 2018). Key features of the new standard are:

·      Financial assets are required to be classified into two measurement categories: those to be measured subsequently at fair value (either through profit and loss or other comprehensive income), and at amortised cost. The decision is to be made at initial recognition.

·      An instrument is subsequently measured at amortised cost only if it is a debt instrument and both (i) the objective of the entity's business model is to hold the asset to collect the contractual cash flows, and (ii) the asset's contractual cash flows represent payments of principal and interest only. All other debt instruments are to be measured at fair value through profit or loss.

·      All equity instruments are to be measured subsequently at fair value. Equity instruments that are held for trading will be measured at fair value through profit or loss. For all other equity investments, an irrevocable election can be made at initial recognition, to recognise unrealised and realised fair value gains and losses through other comprehensive income rather than profit or loss. There is no recycling of fair value gains and losses to profit or loss.

The Group is currently assessing the impact of the new standard on its Consolidated Financial Statements.

 

 

 

 

 

IFRS 15 - Revenue from Contracts with Customers (issued in May 2014 and effective for annual periods beginning on or after 1 January 2018) and Amendments to IFRS 15 (issued in April 2016 and effective for annual periods beginning on or after 1 January 2018). The new standard introduces the core principle that revenue must be recognised when the goods and services are transferred to the customer, at the transaction price. Any bundled goods and services that are distinct must be separately recognised, and any discounts or rebates on the contract price must generally be allocated to the separate elements. When the consideration varies for any reason, minimum amounts must be recognised if they are not at significant risk of reversal. Costs incurred to secure contracts with customers have to be capitalised and amortised over the period when the benefits of the contract are consumed. 

The Group is currently assessing the impact of the new standard on its Consolidated Financial Statements.

IFRS 16 - Leases (issued in January 2016 and replaces the previous IAS 17 Leases, effective for annual periods beginning on or after 1 January 2019 with early adoption permitted in case of implementation of IFRS 15 Revenue from Contracts with Customers). Key features of the standard are:

 

·      IFRS 16 changes the lessees accounting requirements given in IAS 17 and eliminates the classification of leases as either operating leases or finance leases. Instead, introduces a single lessee accounting model where a lessee is required to recognise:

(a) assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value; and

(b) depreciation of lease assets separately from interest on lease liabilities in the income statement.

·      IFRS 16 substantially carries forward the lessor accounting requirements in IAS 17.

·      IFRS 16 does not change the accounting for services.

The Group is currently assessing the impact of the new standard on its Consolidated Financial Statements.

IFRIC 23 - Uncertainty over Income Tax Treatments (issued in June 2017 and effective for annual periods beginning on or after 1 January 2019). IFRIC 23 clarifies the accounting for uncertainties in income taxes.

The Group is currently assessing the impact of the new interpretation on its Consolidated Financial Statements.

 

5.       Cash and cash equivalents

Cash and cash equivalents as of 30 June 2017 and 31 December 2016 comprise the following:

 


 30 June 2017

 31 December 2016

Cash on hand

681

882

Cash in bank

37,985

21,284

Deposits with original maturity of less than three months

28,489

8,647

Other cash equivalents

2,601

2,808

Total cash and cash equivalents

69,756

33,621

 

 

 

 

 

 

 

 

6.       Short-term financial assets

Short-term financial assets as of 30 June 2017 and 31 December 2016 comprise the following:

 


 30 June 2017

 31 December 2016

Short-term loans issued

42,179

41,136

Deposits with original maturity more than 3 months less than 1 year

226

886

Forward contracts - cash flow hedge

-

91

Total short-term financial assets

42,405

42,113

 

 

7.       Trade and other receivables

Trade and other receivables as of 30 June 2017 and 31 December 2016 comprise the following:

 


 30 June 2017

 31 December 2016

Trade receivables

106,780

121,229

Other financial receivables

8,987

6,604

Less impairment provision

(12,890)

(12,274)

Total trade and other receivables

102,877

115,559

 

 

Trade receivables represent amounts due from customers in the ordinary course of business and are short-term by nature.

 

8.       Inventories

Inventories as of 30 June 2017 and 31 December 2016 consist of the following:

 

 

 30 June 2017

 31 December 2016

Petroleum products and petrochemicals

41,114

47,467

Materials and supplies

25,027

26,277

Crude oil and gas

15,484

20,059

Other

8,996

8,378

Less provision

(1,364)

(1,480)

Total inventory

89,257

100,701

 

 

9.       Other taxes receivable

Other taxes receivable as of 30 June 2017 and 31 December 2016 comprise the following:

 


 30 June 2017

 31 December 2016

Value added tax receivable

51,983

44,936

Prepaid custom duties

4,866

6,419

Other taxes prepaid

1,946

2,127

Total other taxes receivable

58,795

53,482

 

 

 

 

 

 

 

10.     Other current assets

Other current assets as of 30 June 2017 and 31 December 2016 consist of the following:

 


 30 June 2017

 31 December 2016

Advances paid

20,645

27,671

Prepaid expenses

2,738

1,104

Other assets

21,909

11,728

Total other current assets, net

45,292

40,503

 

 

Other assets as of 30 June 2017 include a prepayment for participation in an auction for an exploration and development license in the amount of RUB 7.4 billion.

 

11.     Property, plant and equipment

Movements in property, plant and equipment for the six months ended 30 June 2017 and 2016 are as follows:

 

 

Cost

O&G properties

Refining assets

Marketing and distribution

Other assets

Assets under construction

Total

As of 1 January 2017

1,569,525

308,192

152,871

23,531

369,304

2,423,423

Additions

670

898

-

-

194,430

195,998

Changes in decommissioning obligations

(3)

-

-

-

-

(3)

Capitalised borrowing costs

-

-

-

-

14,811

14,811

Transfers

65,727

5,563

28,110

1,217

(100,617)

-

Internal movement

(550)

12

158

108

272

-

Disposals

(1,870)

(785)

(333)

(293)

(754)

(4,035)

Translation differences

216

4,515

3,224

133

(850)

7,238

As of 30 June 2017

1,633,715

318,395

184,030

24,696

476,596

2,637,432

Depreciation and impairment







As of 1 January 2017

(553,140)

(89,106)

(49,052)

(5,780)

-

(697,078)

Depreciation charge

(50,070)

(6,510)

(5,366)

(1,102)

-

(63,048)

Internal movement

91

-

(10)

(81)

-

-

Disposals

1,126

126

171

282

-

1,705

Translation differences

1,954

(1,286)

(776)

(46)

-

(154)

As of 30 June 2017

(600,039)

(96,776)

(55,033)

(6,727)

-

(758,575)

Net book value







As of 1 January 2017

1,016,385

219,086

103,819

17,751

369,304

1,726,345

As of 30 June 2017

1,033,676

221,619

128,997

17,969

476,596

1,878,857

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost

O&G properties

Refining assets

Marketing and distribution

Other assets

Assets under construction

Total

As of 1 January 2016

1,355,282

308,037

152,795

17,933

369,274

2,203,321

Additions

1,350

326

-

-

137,987

139,663

Acquisitions through business combinations

-

38

-

64

-

102

Changes in decommissioning obligations

1,094

-

-

-

-

1,094

Capitalised borrowing costs

-

-

-

-

5,854

5,854

Transfers

72,359

13,486

3,722

971

(90,538)

-

Internal movement

25,381

(6,343)

5,599

2,050

(26,687)

-

Disposals

(2,742)

(620)

(605)

(26)

(745)

(4,738)

Translation differences

(40,897)

(8,569)

(7,943)

(226)

(13,472)

(71,107)

As of 30 June 2016

1,411,827

306,355

153,568

20,766

381,673

2,274,189

Depreciation and impairment







As of 1 January 2016

(489,288)

(81,461)

(41,440)

(3,479)

-

(615,668)

Depreciation charge

(38,818)

(6,586)

(5,572)

(768)

-

(51,744)

Impairment

(5,028)

-

-

-

-

(5,028)

Internal movement

930

1,525

(1,130)

(1,325)

-

-

Disposals

2,067

101

352

15

-

2,535

Translation differences

18,342

2,008

2,054

104

-

22,508

As of 30 June 2016

(511,795)

(84,413)

(45,736)

(5,453)

-

(647,397)

Net book value







As of 1 January 2016

865,994

226,576

111,355

14,454

369,274

1,587,653

As of 30 June 2016

900,032

221,942

107,832

15,313

381,673

1,626,792

 

 

Capitalised borrowing costs for the six months ended 30 June 2017 include exchange losses arising from foreign currency borrowings in the amount of RUB 3.2 billion.

 

12.     Investments in associates and joint ventures

The carrying values of the investments in associates and joint ventures as of 30 June 2017 and 31 December 2016 are summarised below:

 



Ownership percentage

 30 June 2017

 31 December 2016

Slavneft

Joint venture

49.9

101,300

97,084

SeverEnergy

Joint venture

94,361

86,599

Northgas

Joint venture

12,377

11,517

Messoyakha

Joint venture

4,525

353

Others



5,454

5,995

Total investments



218,017

201,548

 

 

The principal place of business of the most significant joint ventures and associates disclosed above is the Russian Federation.

Slavneft

 

The Group's investment in OJSC NGK Slavneft and various minority stakes in Slavneft subsidiaries (Slavneft) are held through a series of legal entities. Slavneft is engaged in exploration, production and development of crude oil and gas and production of refined petroleum products. The control over Slavneft is divided equally between the Group and PJSC NK Rosneft.

 

 

 

SeverEnergy

 

The Group's investment in SeverEnergy LLC (SeverEnergy) is held through Yamal Razvitie LLC (Yamal Razvitie, an entity jointly controlled by the Group and PJSC NOVATEK). SeverEnergy, through its subsidiary OJSC Arctic Gas Company (Arcticgas), is developing the Samburgskoye, Urengoiskoe and Yaro-Yakhinskoye oil and gas condensate fields and some other small oil and gas condensate fields located in the Yamalo-Nenetskiy autonomous region of the Russian Federation.

The carrying amount of the Group's investment exceeds the Group's share in the underlying net assets of SeverEnergy by RUB 18.3 billion as of 30 June 2017 due to complex holding structure, current financing scheme and goodwill arising on acquisition (RUB 18.2 billion as of 31 December 2016).

Northgas

 

The Group's investment in CJSC Northgas (Northgas) is held through Gazprom Resource Northgas LLC which is controlled by the Group and owns a 50% share in Northgas. Northgas is engaged in development of natural gas and oil field.

Messoyakha

 

JSC Messoyakhaneftegas (Messoyakha) is developing the Vostochno-Messoyakhskoe and Zapadno-Messoyakhskoe oil and gas condensate fields. The control over Messoyakha is divided equally between the Group and PJSC NK Rosneft.

The summarised financial information for the significant associates and joint ventures as of 30 June 2017 and 31 December 2016 and for the six months ended 30 June 2017 and 2016 is presented in the tables below.

 

30 June 2017

 Slavneft

 SeverEnergy

 Northgas

 Messoyakha

Cash and cash equivalents

5,731

13,203

2,510

4

Other current assets

43,793

12,809

2,951

6,138

Non-current assets

328,080

372,681

54,267

137,986

Current financial liabilities

(34,564)

(39,087)

(2,868)

(87,505)

Other current liabilities

(25,081)

(9,497)

(2,977)

(1,896)

Non-current financial liabilities

(83,479)

(134,012)

(23,049)

(40,176)

Other non-current liabilities

(37,431)

(53,068)

(4,717)

(5,920)

Net assets

197,049

163,029

26,117

8,631

 

 

31 December 2016

 Slavneft

 SeverEnergy

 Northgas

 Messoyakha

Cash and cash equivalents

4,333

13,530

277

98

Other current assets

22,505

16,506

3,280

15,684

Non-current assets

312,935

357,480

52,986

114,347

Current financial liabilities

(46,727)

(53,439)

(2,677)

(82,745)

Other current liabilities

(25,368)

(12,368)

(54)

(3,512)

Non-current financial liabilities

(42,876)

(123,252)

(24,990)

(37,920)

Other non-current liabilities

(36,587)

(51,995)

(4,415)

(5,665)

Net assets

188,215

146,462

24,407

287

 

 

 

 

 

 

 

 

 

6 months ended 30 June 2017

 Slavneft

 SeverEnergy

 Northgas

 Messoyakha

Revenue

111,410

67,892

10,889

24,051

Depreciation and amortisation

(17,799)

(11,092)

(1,178)

(4,151)

Finance income

593

563

569

3

Finance expense

(2,578)

(10,256)

(1,449)

(3,309)

Total income tax expense

(1,813)

(2,976)

(816)

(2,028)

Profit for the period

8,757

16,568

3,262

8,344

Total comprehensive income for the period

8,838

16,568

3,262

8,344

 

 

6 months ended 30 June 2016

 Slavneft

 SeverEnergy

 Northgas

 Messoyakha

Revenue

104,500

63,568

12,932

42

Depreciation and amortisation

(15,595)

(11,392)

(1,305)

(266)

Finance income

860

462

654

25

Finance expense

(3,700)

(13,777)

(1,963)

(2,559)

Total income tax (expense) / benefit

(4,352)

(900)

(500)

889

Profit / (loss) for the period

17,101

11,637

1,582

(3,621)

Total comprehensive income / (loss) for the period

16,962

11,637

1,582

(3,621)

 

 

Others

 

The aggregate carrying amount of all individually immaterial joint ventures and associates as well as the Group's share of those joint ventures' and associates' profit or loss and other comprehensive income are not significant.

 

13.     Long-term financial assets

Long-term financial assets as of 30 June 2017 and 31 December 2016 comprise the following:

 


 30 June 2017

 31 December 2016

Long-term loans issued

32,610

34,015

Available for sale financial assets

8,214

7,549

Less impairment provision

(1,577)

(1,397)

Total long-term financial assets

39,247

40,167

 

 

14.     Other non-current assets

Other non-current assets are primarily comprised of advances provided on capital expenditures (RUB 81.8 billion and RUB 97.2 billion as of 30 June 2017 and 31 December 2016, respectively).

 

15.     Short-term debt and current portion of long-term debt

As of 30 June 2017 and 31 December 2016 the Group has short-term debt and current portion of long-term debt outstanding as follows:

 


 30 June 2017

 31 December 2016

Bank loans

2,957

6,321

Other borrowings

48

1,061

Current portion of long-term debt

139,909

72,805

Total short-term debt and current portion of long-term debt

142,914

80,187

 

Short-term debt and current portion of long-term debt include interest payable as of 30 June 2017 and 31 December 2016.

 

16.     Trade and other payables

Accounts payable as of 30 June 2017 and 31 December 2016 comprise the following:

 


 30 June 2017

 31 December 2016

Trade accounts payable

82,519

78,161

Dividends payable

53,670

2,115

Forward contracts - cash flow hedge

30,430

11,358

Other accounts payable

5,571

3,990

Total trade and other payables

172,190

95,624

 

 

17.     Other current liabilities

Other current liabilities as of 30 June 2017 and 31 December 2016 comprise the following:

 


 30 June 2017

 31 December 2016

Advances received

18,661

21,293

Payables to employees

3,771

2,627

Other non-financial payables

6,444

4,760

Total other current liabilities, net

28,876

28,680

 

 

18.     Other taxes payable

Other taxes payable as of 30 June 2017 and 31 December 2016 comprise the following:

 


 30 June 2017

 31 December 2016

VAT

24,189

20,140

Mineral extraction tax

19,995

25,261

Excise tax

13,862

11,389

Social security contributions

4,045

4,721

Other taxes

5,037

5,748

Total other taxes payable

67,128

67,259

 

 

Tax expense other than income tax expense for the three and six months ended 30 June 2017 and 2016 comprise the following:

 

 3 months ended

30 June 2017

 3 months ended

30 June 2016

 6 months ended

30 June 2017

 6 months ended

30 June 2016

Mineral extraction tax

70,606

62,129

151,388

102,728

Excise tax

32,954

29,665

58,391

50,410

Social security contributions

4,761

4,338

9,860

9,090

Other taxes

3,323

2,390

6,392

6,904

Total taxes other than income tax

111,644

98,522

226,031

169,132

 

 

 

 

19.     Long-term debt

As of 30 June 2017 and 31 December 2016 the Group has long-term outstanding debt as follows:

 


 30 June 2017

 31 December 2016

Bank loans

338,447

348,142

Loan participation notes

228,755

231,250

Bonds

97,143

81,879

Other borrowings

7,944

7,755

Less current portion of long-term debt

(139,909)

(72,805)

Total long-term debt

532,380

596,221

 

 

Bank loans

 

In March 2017 the Group performed principal repayment in the total amount of USD 307 million (RUB 18.1 billion) under the Club term loan facility with the syndicate of international banks (facility agent - Mizuho) according to the payment schedule.

In March 2017 the Group performed principal repayment in the total amount of USD 100 million (RUB 5.7 billion) under the Club term loan facility with the syndicate of international banks (facility agent - Commerzbank) according to the payment schedule.

In May and June 2017 the Group performed pre-scheduled principal repayment in the total amount of RUB 65 billion under term and revolving loan facilities with PJSC Sberbank.

In June 2017 the Group borrowed RUB 42.4 billion under long-term facility agreements with PJSC Bank VTB due payable in June 2022.

In June 2017 the Group borrowed RUB 42.7 billion under long-term facility agreement with PJSC Sberbank due payable in June 2022.

The loan agreements contain financial covenant that limits the Group's ratio of "Consolidated financial indebtedness to Consolidated EBITDA". The Group is in compliance with all covenants as of 30 June 2017.

Bonds

 

In April 2017 the Group placed five-year Rouble Bonds (001P-01R series) with the total par value of RUB 15 billion. The bonds bear interest of 8.7% per annum.

 

20.     Other non-current financial liabilities

Other non-current financial liabilities as of 30 June 2017 and 31 December 2016 comprise the following:

 


 30 June 2017

 31 December 2016

Deferred consideration

55,498

60,384

Forward contracts - cash flow hedge

1,840

28,015

Other liabilities

1,412

1,345

Total other non-current financial liabilities

58,750

89,744

 

 

Deferred consideration represents liability to PJSC Gazprom for assets relating to Prirazlomnoye project. In February 2017 the payment schedule was modified. The effect of the change in carrying value of liability due to the contract term revision in amount of RUB 7.6 billion was reflected in additional paid-in capital.

21.     Finance lease

In 2016 the Group entered into an agreement to lease vessels and the contract was classified as a finance lease. During the six months ended 30 June 2017 the Group became entitled to exercise the right to use the assets. The net book value of the leased assets as of 30 June 2017 is RUB 25.3 billion. Upon termination of lease term ownership title to the vessels transfers to the Group. The lease contract also contains an option for early purchase of the assets by the Group.

Net book value of other items of PPE under finance lease contracts is non significant.

The reconciliation between future minimum lease payments and their present value as of 30 June 2017 is presented in the table below:

 


 Minimum lease payments

 Present value of minimum lease payments

30 June 2017



 Less than one year

2,831

2,737

 Between one and five years

11,437

9,461

 More than five years

19,208

11,209

Total minimum lease payments

33,476

23,407

 

 

The difference between the minimum lease payments and their present value represents future finance charges on finance lease liabilities.

 

22.     Net foreign exchange (loss) / gain

Net foreign exchange gain for the three and six months ended 30 June 2017 and 2016 comprise the following:

 


 3 months ended

30 June 2017

 3 months ended

30 June 2016

 6 months ended

30 June 2017

 6 months ended

30 June 2016

Net foreign exchange (loss) / gain on

financing activities, including:

(17,532)

26,245

9,572

44,266

foreign exchange gain

419

28,442

10,327

73,023

foreign exchange loss

(17,951)

(2,197)

(755)

(28,757)

Net foreign exchange gain / (loss) on

operating activities

10,055

(12,430)

(3,867)

(28,156)

Net foreign exchange (loss) / gain

(7,477)

13,815

5,705

16,110

 

 

23.     Finance income

Finance income for the three and six months ended 30 June 2017 and 2016 comprise the following:

 


 3 months ended

30 June 2017

 3 months ended

30 June 2016

 6 months ended

30 June 2017

 6 months ended

30 June 2016

Interest income on loans issued

2,040

1,811

4,099

3,411

Interest on bank deposits

462

360

699

942

Other financial income

211

546

428

911

Total finance income

2,713

2,717

5,226

5,264

 

 

 

24.     Finance expense

Finance expense for the three and six months ended 30 June 2017 and 2016 comprise the following:

 


 3 months ended

30 June 2017

 3 months ended

30 June 2016

 6 months ended

30 June 2017

 6 months ended

30 June 2016

Interest expense

12,051

10,896

23,524

23,100

Decommissioning provision: unwinding of
    discount

580

616

1,305

1,192

Less: capitalised interest

(6,088)

(2,798)

(11,568)

(5,854)

Finance expense

6,543

8,714

13,261

18,438

 

 

25.     Fair value measurement

The following assets and liabilities are measured at fair value in the Interim Condensed Consolidated Financial Statements: derivative financial instruments (forward exchange contracts and interest rate swaps used as hedging instrument), Stock Appreciation Rights plan (SARs) and financial investments classified as available for sale except for unquoted equity instruments whose fair value cannot be measured reliably that are carried at cost less any impairment losses. Derivative financial instruments and SARs refer to Level 2 of the fair value measurement hierarchy, i.e. their fair value is determined on the basis of inputs that are observable for the asset or liability either directly or indirectly. The fair value of the foreign exchange contracts is determined by using forward exchange rates at the reporting date with the resulting value discounted back to present value. The fair value of the liability under the SAR plan is estimated using the Black-Scholes-Merton option-pricing model by reference primarily to the Company's share price, historic volatility in the share price, dividend yield and interest rates for periods comparable to the remaining life of the award. There were no transfers between the levels of the fair value hierarchy during the interim period. There are no significant assets or liabilities measured at fair value categorised within Level 1 or Level 3 of the fair value hierarchy.

As of 30 June 2017 the fair value of bonds and loan participation notes is RUB 334,025 million (RUB 315,488 million as of 31 December 2016). Carrying value of other financial assets and liabilities approximate their fair value.

 

26.     Commitments and contingencies

Taxes

Russian tax and customs legislation is subject to frequent changes and varying interpretations. Management's treatment of such legislation as applied to the transactions and activity of the Group, including calculation of taxes payable to federal, regional and municipal budgets, may be challenged by the relevant authorities. The Russian tax authorities may take a more assertive position in their treatment of legislation and assessments, and there is a risk that transactions and activities that have not been challenged in the past may be challenged later. As a result, additional taxes, penalties and interest may be accrued. Generally, taxpayers are subject to tax audits for a period of three calendar years immediately preceding the year in which the decision to carry out a tax audit has been taken. Under certain circumstances tax audits may cover longer periods. The years 2014-2017 are currently open for tax audit. Management believes it has adequately provided for any probable additional tax accruals that might arise from these tax audits.

 

 

 

Russian tax legislation on tax control over prices applied for tax purposes in related party transactions ("transfer pricing rules") was amended starting from 1 January 2012 to introduce significant reporting and documentation requirements regarding market environment at the date of transaction. Compared to the old rules the new transfer pricing rules appear to be more technically elaborate and better aligned with the Transfer Pricing Guidelines developed by the Organisation for Economic Cooperation and Development (OECD). The transfer pricing rules allow the tax authorities to make transfer pricing adjustments to the respective tax bases and impose additional tax liabilities in respect of controllable transactions (transactions with related parties and some transactions with unrelated parties), in cases where the prices of such transactions do not correspond to the ranges of prices deemed to be fair market prices for tax purposes defined in compliance with the said rules.

The compliance of the prices of the Group's controllable transactions with related parties with the transfer pricing rules is subject to regular internal control. Management believes that the transfer pricing documentation that the Group has prepared to confirm its compliance with the transfer pricing rules provides sufficient evidence to support the Group's tax positions and related tax returns. In addition in order to mitigate potential risks, the Group regularly negotiates approaches to defining prices used for tax purposes for major controllable transactions with tax authorities in advance. As of 30 June 2017 fifteen pricing agreements between the Group and tax authorities regarding major intercompany transactions have been concluded.

However, given that the practice of enforcement of the new transfer pricing rules has not yet developed and some clauses of the applicable law are ambiguous and contain contradictions, the impact of the transfer pricing rules on the Group's tax liabilities cannot be reliably estimated.

Economic environment in the Russian Federation

The Russian Federation displays certain characteristics of an emerging market. Tax, monopoly, currency and customs legislation of the Russian Federation is subject to varying interpretations and contributes to the challenges faced by companies operating in the Russian Federation. The political and economic instability, uncertainty and volatility of the financial markets and other risks may have negative effects on the Russian financial and corporate sectors. The future economic development of the Russian Federation is dependent upon external factors and internal measures undertaken by the government to sustain growth and to change the tax, legal and regulatory environment. Management believes it is taking all necessary measures to support the sustainability and development of the Group's business in the current business and economic environment.

In 2014 the U.S., the EU and certain other countries imposed sanctions on the Russian energy sector that partially apply to the Group. The information on the main restrictions related to sanctions was disclosed in the Consolidated Financial Statements as of and for the year ended 31 December 2016. In August 2017 the U.S. signed an act to impose further sanctions against the Russian Federation, North Korea and Iran. The Group is currently assessing the impact of the new sanctions on its activity.

Environmental matters

The enforcement of environmental regulation in the Russian Federation is evolving and the enforcement posture of government authorities is continually being reconsidered. The Group periodically evaluates its potential obligations under environmental regulation. Management is of the opinion that the Group has met the government's requirements concerning environmental matters, and therefore the Group does not have any material environmental liabilities.

Capital commitments

As of 30 June 2017 the Group has entered into contracts to purchase property, plant and equipment for RUB 313,802  million (RUB 300,978 million as of 31 December 2016).

27.     Related party transactions

For the purpose of these Interim Condensed Consolidated Financial Statements parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial and operational decisions as defined by IAS 24 Related Party Disclosures. Related parties may enter into transactions which unrelated parties might not, and transactions between related parties may not be effected on the same terms, conditions and amounts as transactions between unrelated parties.

The Group has applied the exemption as allowed by IAS 24 not to disclose all government related transactions, as the parent of the Company is effectively being controlled by the Russian Government. In the course of its ordinary business the Group enters into transactions with natural monopolies, transportation companies and other companies controlled by the Russian Government. Such purchases and sales are individually insignificant and are generally entered into on market or regulated prices. Transactions with the state also include taxes which are detailed in Notes 9 and 18. The Group also leases vessels under time-charter agreements with a government related entity (lease expense amounted RUB 2.6 billion for the six months ended 30 June 2017). The tables below summarise transactions in the ordinary course of business with either the parent company or associates and joint ventures.

The Group enters into transactions with related parties based on market or regulated prices. Short-term and long-term loans provided as well as debt are based on market conditions available for not related entities.

As of 30 June 2017 and 31 December 2016 the outstanding balances with related parties were as follows:

 

 30 June 2017

 Parent company

 Parent's subsidiaries and associates

 Associates and joint ventures

Cash and cash equivalents

 -

24,195

 -

Short-term financial assets

 -

 -

41,518

Trade and other receivables

3,010

3,727

14,695

Other assets

620

3,558

1,024

Long-term financial assets

 -

 -

28,848

        Total assets

3,630

31,480

86,085

Short-term debt and other current financial
    liability

 -

 -

15

Trade and other payables

50,116

2,216

14,331

Other current liabilities

1,438

502

64

Long-term debt and other non-current financial
    liability

56,711

59,085

 -

        Total liabilities

108,265

61,803

14,410

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 31 December 2016

 Parent company

 Parent's subsidiaries and associates

 Associates and joint ventures

Cash and cash equivalents

 -

7,723

 -

Short-term financial assets

 -

860

40,381

Trade and other receivables

3,693

4,160

13,212

Other assets

614

4,290

1,224

Long-term financial assets

 -

 -

30,273

        Total assets

4,307

17,033

85,090

Short-term debt and other current financial
    liability

 -

 -

1,029

Trade and other payables

1,921

3,236

8,066

Other current liabilities

772

392

201

Long-term debt and other non-current financial
    liability

60,276

60,657

 -

        Total liabilities

62,969

64,285

9,296

 

 

For the six months ended 30 June 2017 and 2016 the following transactions occurred with related parties:

 

6 months ended 30 June 2017

 Parent company

 Parent's subsidiaries and associates

 Associates and joint ventures

Crude oil, gas and oil products sales

17,000

18,833

27,547

Other revenue

2

2,472

5,860

Purchases of crude oil, gas and oil products

 -

21,502

61,185

Production related services

12

11,341

9,775

Transportation costs

4,706

728

5,061

Interest expense

2,732

1,690

27

Interest income

 -

86

3,782

 

 

6 months ended 30 June 2016

 Parent company

 Parent's subsidiaries and associates

 Associates and joint ventures

Crude oil, gas and oil products sales

12,811

18,074

26,073

Other revenue

14

2,162

3,262

Purchases of crude oil, gas and oil products

 -

20,091

44,473

Production related services

19

9,056

9,088

Transportation costs

3,275

846

3,027

Interest  expense

3,229

2,051

76

Interest income

 -

82

2,938

 

 

Transactions with Key Management Personnel

 

For the six months ended 30 June 2017 and 2016 the Group recognised RUB 967 million and RUB 910 million, respectively, as compensation for key management personnel (members of the Board of Directors and Management Committee). Key management remuneration includes salaries, bonuses, quarterly accruals of SAR and other contributions. 

 

 

 

 

28.     Segment information

Operating segments are components that engage in business activities that may earn revenues or incur expenses, whose operating results are regularly reviewed by the chief operating decision maker (CODM), and for which discrete financial information is available.

The Group manages its operations in 2 operating segments: Upstream and Downstream.

Upstream segment (exploration and production) includes the following Group operations: exploration, development, production and sale of crude oil and natural gas (including joint ventures results), oil field services. Downstream segment (refining and marketing) processes crude into refined products and purchases, sells and transports crude oil and refined petroleum products.

The information about the Group's operating segments for the six months ended 30 June 2017 and 2016 is presented below:

 

6 months ended 30 June 2017

Upstream

Downstream

Eliminations

Total

Revenue from sales:





                 External customers

106,394

765,963

-

872,357

                 Inter-segment

254,150

9,542

(263,692)

-

 Total revenue from sales

360,544

775,505

(263,692)

872,357






 Adjusted EBITDA

190,609

55,198

-

245,807

 Depreciation, depletion and amortisation

50,505

15,789

-

66,294

 Capital expenditure

94,150

60,085

-

154,235

 

 

6 months ended 30 June 2016

Upstream

Downstream

Eliminations

Total

Revenue from sales:





                 External customers

37,967

663,708

-

701,675

                 Inter-segment

239,791

9,690

(249,481)

-

 Total revenue from sales

277,758

673,398

(249,481)

701,675






 Adjusted EBITDA

148,882

54,649

-

203,531

 Depreciation, depletion and amortisation,  
 including:

43,886

16,343

-

60,229

       Impairment of assets

5,028

-

-

5,028

 Capital expenditure

113,306

53,092

-

166,398

 

 

Intersegment revenues are based upon prices effective for local markets and linked to market prices.

Eliminations and other adjustments section encompasses elimination of inter-segment sales and related unrealised profits, mainly from the sale of crude oil and products, and other adjustments.

Adjusted EBITDA represents the Group's EBITDA and its share in associates' and joint ventures' EBITDA. Management believes that adjusted EBITDA represents useful means of assessing the performance of the Group's ongoing operating activities, as it reflects the Group's earnings trends without showing the impact of certain charges. EBITDA is defined as earnings before interest, income tax expense, depreciation, depletion and amortisation, foreign exchange gain (loss), other non-operating expenses and includes the Group's share of profit of associates and joint ventures. EBITDA is a supplemental non-IFRS financial measure used by Management to evaluate operations.

 

 

The geographical segmentation of the Group's revenue and capital expenditures for the six months ended 30 June 2017 and 2016 is presented below:

 

6 months ended 30 June 2017

 Russian Federation

 CIS

 Export and international operations

 Total

Sales of crude oil

46,171

14,255

219,260

279,686

Sales of petroleum products

392,996

34,773

187,942

615,711

Sales of gas

18,059

-

707

18,766

Other sales

24,453

943

4,715

30,111

    Less custom duties and sales related excises

-

(573)

(71,344)

(71,917)

 Revenues from external customers, net

481,679

49,398

341,280

872,357

6 months ended 30 June 2016





Sales of crude oil

44,052

14,260

107,499

165,811

Sales of petroleum products

341,899

33,873

185,403

561,175

Sales of gas

14,308

-

961

15,269

Other sales

23,058

952

4,812

28,822

    Less custom duties and sales related excises

-

(484)

(68,918)

(69,402)

 Revenues from external customers, net

423,317

48,601

229,757

701,675

 

 


 Russian Federation

 CIS

 Export and international operations

 Total

Non-current assets as of 30 June 2017

Capital expenditures for the 6 months ended
30 June 2017

144,793

327

9,115

154,235

Non-current assets as of 31 December 2016

Capital expenditures for the 6 months ended
30 June 2016

155,048

195

11,155

166,398

Impairment of assets for the 6 months ended
30 June 2016

-

-

5,028

5,028

 

 

Adjusted EBITDA for the three and six months ended 30 June 2017 and 2016 is reconciled below:

 


 3 months ended

30 June 2017

 3 months ended

30 June 2016

 6 months ended

30 June 2017

 6 months ended

30 June 2016

Profit for the period

53,317

50,155

118,051

91,747

Total income tax expense

13,240

9,511

28,162

17,792

Finance expense

6,543

8,714

13,261

18,438

Finance income

(2,713)

(2,717)

(5,226)

(5,264)

Depreciation, depletion and amortisation

33,984

32,343

66,294

60,229

Net foreign exchange (loss) / gain

7,477

(13,815)

(5,705)

(16,110)

Other loss, net

2,513

11,393

3,379

12,153


114,361

95,584

218,216

178,985

less share of profit of associates and joint

ventures

(7,892)

(10,307)

(18,710)

(16,031)

add share of EBITDA of associates and joint

ventures

21,544

21,889

46,301

40,577

Total adjusted EBITDA

128,013

107,166

245,807

203,531

 

 

 

29.     Subsequent events

In August 2017 the Group placed seven-year Rouble Bonds (001P-02R series) with the total par value of RUB 15 billion. The bonds bear interest of 8.25% per annum.

 



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