Bashneft Ank · RUS:BANE
Bashneft Ank — JSOC Bashneft — Deutsche Bank CEEMEA Conference 2013
23 slides from Bashneft Ank's conference presentation, Jan 23, 2013
Slide 1: JSOC Bashneft today: The results of active business management
JSOC Bashneft today: The results of active business management CEEMEA Conference Deutsche Bank 23-25 January 2013, London
Slide 2: Disclaimer
Disclaimer Certain statements in this presentation may contain assumptions or forecasts with respect to forthcoming events within Bashneft Group. The words “expect”, “estimate”, “intend”, “will”, “could” and similar expressions identify forward-looking statements. We wish to caution you that these s
Slide 3: Bashneft Group Today as vertically integrated company
Bashneft Group Today as vertically integrated company Notes: E&P strategic regions Regional sales offices Trebs and Titov fields Filling stations (own and partners’) 1 Number of the filling stations Single largest undeveloped oil field in Exploration Russia and one of the largest in the world C1+C2
Slide 4: Financial and Operating Highlights, 3Q 2012
Financial and Operating Highlights, 3Q 2012* Oil production increased by 1.8% to 3,878 thousand tonnes; Operating results Crude oil refining rose by 7.4% to 5,323 thousand tonnes; Refining depth changed insignificantly to 85.5%; Light oil output increased by 3.5 p.p. to 61.4%; Petroleum product sale
Slide 5: Key Indicators for Bashneft Group in 3Q 2012
Key Indicators for Bashneft Group in 3Q 2012 3Q 2012 2Q 2012 ∆, % Indicator 9M 2012 9M 2011 ∆, % 109,1 106,8 2,2% Urals price, US$/bbl 111,1 109,2 1,7% 3 878 3 811 1,8% Crude oil production, ‘000 tonnes 11 529 11 257 2,4% 5 323 4 954 7,4% Oil refining, ‘000 tonnes 15 397 15 729 -2,1% 5 306 4 737 12,
Slide 6: Bashneft reserve base as of 31 December 2011
Bashneft reserve base as of 31 December 2011 Reserves Reserves Trebs & Titov oilfields in Nenets 188 fields, of which 166 in operation Autonomous Okrug (2 oilfields) Proved oil reserves (1P) in 2011– 1,984mmbbl; (2P) – 2,404mmbbl Reserve life of 18 years (1P), 22 years (2P) Part of theTuimazinskoye
Slide 7: Strategic development of the Nenets Autonomous District
Strategic development of the Nenets Autonomous District The R. Trebs and A. Titov oilfields and new license areas will promote production growth in the long term Trebs and Titov oilfields Acquired in February 2011 for RUB 18.5 billion Licence area – 2,151 sq. km лицензионных Recoverable участков r
Slide 8: Development plan of the Trebs and Titov oilfields
Development plan of the Trebs and Titov oilfields April 15, 2011: Bashneft and Lukoil signed an agreement on cooperation in the development of the oilfields December 14, 2011: the licence was transferred to Bashneft-Polus Varandey terminal of OJSC LUKOIL December 27, 2011: signing of the final docum
Slide 9: Today's confidence in supporting of current oil production level
Today's confidence in supporting of current oil production level Oil production growth rates in 2011, % Upstream business results 6.8% Bashneft remained the Russian oil sector leader by crude 2,1% output growth rates in 2011. Crude output was 15.106 million tonnes, which is 6.8% more than in 2010. 1
Slide 10: Upstream strategy by 2016
Upstream strategy by 2016 Oil production forecast, mln tonnes 20 18,5 18 15,1 15,2 16 14,1 14 12,2 12 10 8 6 4 2 0 2009 2010 2011 2012E 2013E 2014E 2015E 2016E Bashneft "as is" Trebs & Titov Mid-term goals 2012- 2016 Crude oil production of 18.5mmt by 2016 on the basis of existing assets: Maintainin
Slide 11: Bashneft Group refining complex is best in Russia
Bashneft Group refining complex is best in Russia Oil refining capacity – 24.1 mln. tonnes per year 2011 Refining volume – 21.1 mln. tonnes Average refining depth – 85.9% 2011 Share of light products – 59.9% Nelson index – 8.3 Bashneft engine fuels fully comply with Euro 3 standards 2011 Share of ga
Slide 12: Bashneft: leading position among Russian Majors in oil refining
Bashneft: leading position among Russian Majors in oil refining Oil refining growth rates (FY11),% Comments Refining volumes in 2011 declined by 0.6% y-o-y to 21.062 million tonnes; * 5,4% Crude oil refining volume amounted to 5,323 thousand tonnes, having increased by -0,1% 7.4% in the 3Q 2012; thi
Slide 13: Downstream strategy by 2016
Downstream strategy by 2016 Refining volume, refining depth and light yield Mid-term goals (2012- 2016) 25 94,4% 100% Refining Modernisation 85,9% Oil product basket optimisation by decreasing share of heavy petroleum 23 73,4% 80% products; 59,9% 21 60% Increasing of Nelson complexity index to 9.6:
Slide 14: Bashneft petroleum product sales dynamics and structure
Bashneft petroleum product sales dynamics and structure Export and domestic sales of oil products, Sales results mln. tonnes. 6,0 Export sales of petroleum products and petrochemicals outside the CIS 5,0 increased by 18.2% (1,686 thousand tonnes in the 3Q 2012 versus 1,426 thousand tonnes in the 2Q2
Slide 15: Bashneft key credit strengths
Bashneft key credit strengths Large-scale vertical Extensive reserve base Top-industry production integration from crude oil combined with top-industry growth rates backed by production to sales of replacement results and lowest significant potential for petroleum products F&D costs further expansio
Slide 16: Debt portfolio
Debt portfolio Debt breakdown (as of September 30, 2012) Debt structure, % 4500 4000 100% (745) 5,0% 9,0% 3500 90% 80% 3000 (1 100) 70% 2500 3 044 60% 2000 4 130 50% 95,0% 91,0% 1500 40% 2 285 30% 1000 20% 500 1 086 10% 0 0% Short term Long term Total Cash and cash Short term Net debt FY2010 FY2011
Slide 17: Appendix
Appendix
Slide 18: Bashneft completes transition to a single share
Bashneft completes transition to a “single share” Key goals of the transaction Current structure, % of voting shares Establish Bashneft as a fully-fledged vertically-integrated company Minority Optimise corporate structure to improve efficiency shareholders 10,68% Protect the rights of minority shar
Slide 19: Group structure after reorganization
Group structure after reorganization 50.10% * (57.26% **) 50.6% * (50.6% **) JSFC Sistema 49.4% * (49.4% **) Sistema- Bashneft 25.24% * (30.24% **) Invest 100% Production 21.01% * (10.68% **) 74.9% BASHNEFT-POLUS 100% Refining Minorities 100% Marketing 56.5% * (65.3% **) 21.5% * (24.9% **) Ufaorgsin
Slide 20: Constant monitoring and application of best corporate governance practices
Constant monitoring and application of best corporate governance practices Board of Directors Felix Evtushenkov Chairman Sergei Drozdov Aleksey Buyanov Senior Vice President, Senior Vice President, Alexander Goncharuk Charles Watson Randall Gossen Head of Corporate Head of the Finance and Deputy Cha
Slide 21: Corporate governance and management structure
Corporate governance and management structure Committees Alexander Nominating and Board of Strategy Corporate Conduct Budget and Audit Health, Safety and Korsik Compensation Directors Committee Committee Committee Environment President Committee Exploration & Production Refining and commerce Strateg
Slide 22: Strong Management Team with years of experience in the oil and gas industry
Strong Management Team with years of experience in the oil and gas industry in Russia Alexander 1995-1997 Deputy executive director of KomiTek-Moscow Mikhail 1985-1998 Oil&gas production operator at Noybrskneftegaz; Head of oil&gas production department of a sub of Noybrskneftegaz Korsik 1997-1999 H
Slide 23: Thank you for your attention!
Thank you for your attention! Our contacts: Investor Relations Department Maria RADINA Head of IR Phone: (007) (495) 225-00-35, ext. 99832 E-mail: [email protected] 5, 1-st Tverskaya-Yamskaya Moscow, 125047, Russia Tel: +7 495 225 – 00 – 35 Fax + 7 495 228 – 15 – 90 [email protected]