Bashneft's net profit grew by more than 6% in first half of year
UFA, 21 August 2019. /Bashinform News Agency/ translated by Tatiana Aksyutina/.
Joint Stock Oil Company Bashneft published financial results for the first half of the year. The company achieved significant growth in such key indicators as revenue, net profit and EBITDA (profit before taxes, depreciation and other expenses) compared to the first half of 2018. Analysts explain the steady growth of Bashneft’s performance by the synergistic effect of the company’s operations as a part of Rosneft, which was manifested, in particular, in improving the efficiency of oil refining, the use of new technologies and intra-group cooperation.
Thus, according to IFRS, the revenue of PJSOC Bashneft in the first half of 2019 increased by more than 9% to 424.6 billion rubles. EBITDA increased by 10% and amounted to 89.8 billion rubles. Net profit growth was 6.2%: it was registered at around 44 billion rubles. The increase in net profit also means the stability of dividends that the budget of the Republic of Bashkortostan will receive: as the region owns a 25% stake in Bashneft.
In many ways, financial growth was achieved due to the successful performance of the company. Oil refining volumes increased to 9.3 million tons (5.7% compared to the first half of 2018), while oil production remained at about the level of 6 months of 2018 and amounted to 9.3 million tons.
The company also significantly reduced administrative costs — by 8%, which also positively affected its financial results.
PJSOC Bashneft is the largest taxpayer in Bashkiria and a key source of replenishment of the budget of the republic — it forms up to 25% of the revenue part of the regional budget. The charitable program of the company allows the republic to solve a whole range of social and environmental problems effectively. Thus, the successful development results of Bashneft largely ensure the socio-economic stability of the entire region.