Rusneftegaz will be unable to respond to any nonessential communications, including electronic and telephone messages, between 26 December 2022 and 9 January 2023 due to an administrative shutdown during the Christmas period. It is imperative that messages be sent earlier to guarantee a response, although all communications received during the period will be monitored and replied to if necessary. At the end of the closure, Rusneftegaz, in conjunction with our affiliates and subsidiaries, will strive to respond to all communications within one working day. We necessitate your cooperation and understanding with this matter.
Rusneftegaz can publish results for the third quarter of the year as of and for the three and nine months ended 30 September. These statements were prepared in accordance with International Financial Reporting Standards, otherwise known as IFRS, and have not been audited. The full results are disclosed in the financial section of the Group's website.
Between July and September of this year, Rusneftegaz can disclose that our organization has registered record quarterly revenues in consecutive periods, with a total of $207,1 million being earned in the past three months. This figure marks the first time our organization has amassed in excess of $200,0 million within a ninety-day timeframe in our corporate history, and represents a 15,1% increase upon the $179,9 million accrued during the same quarter in 2021. The total also reflects a considerable 5,6% improvement on the turnover obtained between the beginning of April and the end of June of this year, when a value of $196,1 million was reported. However, whilst these numbers are perceived as a major success by our management, this was not emulated in our quarterly profits, which declined by 2,9% from the three months prior. Overall, Rusneftegaz can announce a pre-tax profit of $61,8 million for the third period of 2022, down from the $63,8 million attributable to the second quarter, but up 22,5% on the $50,5 million gained at the same point in time twelve months before. Whilst these results are generally positive, our company continues to be affected by adverse conditions beyond our control or attempts to mitigate. Foremost, the immediate improvement in our financial reporting on an annual basis is solely due to the minimal effect coronavirus and pandemic-related restrictions have had on our operations in recent times. It should be noted that twelve months ago, our business was still heavily impacted by stringent regulations. For instance, the board of directors agreed in August 2021 that remote working practices would have to continue beyond their anticipated end date. In comparison, this summer has been extraordinarily uneventful, with no major announcements or briefings being published over the duration of the season.
The end of the health crisis, and its corresponding repercussions, on our enterprise have subsequently culminated in Rusneftegaz accumulating $588,4 million in revenues and $194,6 million in pre-tax profits for the first nine months of the year. Both of these sums exemplify notable year-on-year growth, with the former rising by 27,0% from $463,4 million, and the latter also increasing by 38,9% to $140,1 million. For this reason, our management is projecting that in this twelve-month period, our company shall once again achieve record turnover and profits. However, the unexpected deterioration in diplomatic relations between Russia and Western nations since the beginning of 2022 has necessitated a comprehensive revision of our broader trading strategy. This is particularly acute in areas where we have significant numbers of commercial partners headquartered in now adversarial countries. Whereas prior to the events that have unfolded our organization maintained extensive relationships with corporations across the globe, Rusneftegaz is now largely reliant on the domestic market for petroleum sales. Although in the longer-term our management will seek to expand our attention to the East Asian market; until the necessary agreements have been contracted our options to sell our products in Europe have been reduced by embargoes and other constraints, both de jure and de facto. Despite the fact that trading solely within the borders of the Russian Federation has not restricted our turnover, it has resulted in our organization becoming less able to mitigate the risks associated with fluctuations in the value of currency. Thus, a plurality of our transactions are currently performed using the Russian ruble, which despite showing indicators of depreciation in the first half of the financial year, has since stabilized and is now the strongest it has been in almost a decade.
Likewise, although commodity prices are now lower than in the previous two quarters, these figures remain eminently higher than at the same time last year. Nonetheless, it should be noted that since the conclusion of the third quarter, petroleum values have receded further, and this may influence our financial reporting for the final three months of the 2022. In the immediate term, such factors have been mitigated by utilizing futures contracts to counteract the falls in these prices. Such agreements have also abated the effects of declines in our production rates since the end of June, with oil extraction totaling 1,47 million barrels in the latest full period. Such a number is a reduction of 1,3% on the 1,50 million barrels lifted in the second quarter, but a 2,8% year-on-year escalation from the 1,43 million barrels recorded in the penultimate three-month period of 2021. Overall, production peaked at 16.521 barrels per day, with a quarterly average of 16,032 barrels per day over the duration of the timeframe. Likewise, there were similar changes in the volumes of electricity generated, which amounted to 2,09 TWh in the third quarter. Such a total is indicative of a decline of 9,5% from the 2,31 TWh disclosed in the prior period, but an 11,8% growth year-on-year when 1,87 TWh was yielded. Nonetheless, energy production is currently forecasted to peak in the fourth quarter as a result of annual peaks in demand, as it has done so since our corporate records began. Whilst this period has shown some symptoms of regression from previous highs, our board of directors remains wholly positive with regard to our future. As previously mentioned, it is anticipated that Rusneftegaz will publish record annual revenues and profits for this year in April 2023, and our wider expansion plans have been so-far unaffected by wider global events that are registering an impact both locally and internationally. At present, trends may not be favorable in the immediate times to come, but there are numerous reasons to be optimistic for the months ahead.
The financial details in this article are current at the date of this report, and believed by Rusneftegaz to be accurate and true. All information is disclosed as a summary and does not purport to be complete. The data that this commentary is dependent on is obtained from sources believed to be reliable, but the Group, nor any of the directors, officers, employees, agents, subsidiaries or affiliates, can wholly guarantee the accuracy or completeness of such information.
On 25 November, Rusneftegaz hosted an event in Moscow to mark the achievements of a number of a staff over the past twelve months. This was the first such ceremony held by our organization since 2019, prior to the commencement of the coronavirus pandemic, which has disrupted our plans for the past two years. Instead of prizes being distributed locally by regional managers, a pool of dignitaries, executives and representatives descended on the capital to recognize the work of our personnel in the field, and our administrators, whom operate at a greater distance. All of those nominated for awards last Friday were nominated by their contemporaries in appreciation of their exceptional endeavors and hard work. These selections were then seconded by their managers, before the final choices being approved at board level. Following the evening, the Deputy Chief Executive Officer, Alexander Filyurin, remarked:
“Firstly, I would like to take this opportunity to congratulate all of those that have won awards and been honored here today. The board and I never fail to be amazed by what our staff do to help make Rusneftegaz a successful company, and the past year is just another chapter in that success story. Although it is fair to say that this year has been far more challenging than we expected, we all managed to rise to those challenges and see them off again. We are anticipating strong results for this year, which represent our ongoing growth. There are many reasons to remember 2022 fondly; especially when we remember that this is the first year of the decade that has not been massively impacted by the pandemic. There are even more reasons to be excited about next year though, a lot of the projects that were delayed by the pandemic are now due to be completed in 2023, which could be a truly transformational year for our company. Personally, I am excited by it, and I hope all of our staff are, too.”
Among the worthy prizewinners were Artem Shaparov and Artur Denisov, who were chosen as employee and young employee of the year respectively. Both of these men are considered to have made an outstanding individual contribution to the development of Rusneftegaz throughout 2022. In this case, Shaparov managed to oversee and complete a complex technical project to renew a malfunctioning pump jack at an unprecedented speed. Likewise, Denisov has made outstanding progress as an engineer since joining our company in June last year, whilst also raising significant funds for veteran’s charities. As per the precedent set since the health crisis started in 2020, management also elected to award special commendations to eighteen members of staff for their efforts this year. This is because Rusneftegaz always aims to both acknowledge and commend the remarkable accomplishments of all those affiliated with our company, and is grateful to them for our continued success. We wish them all a Merry Christmas and a Happy New Year.
For the third quarter, Rusneftegaz can declare operational data in the following divisions:
Oil and Gas:
All production data is unaudited and derived from internal operations reports.
Rusneftegaz has published a preliminary calendar for the next fiscal year, with our organization scheduled to disclose our consolidated financial statements on 4 April 2023, and convene for an Annual General Meeting later that same week. This particular conference is currently due to be held on 7 April 2023, although this date is subject to change. It is currently the intention of the board to once again host the event at a venue in Moscow, avoiding the session being held virtually via teleconference as per during the pandemic, although this option remains as a contingency if necessary. However, it should be noted that none of our plans throughout the last year have been affected by coronavirus, and management considers this phase of the health crisis to have ended. This does, nonetheless, exclude the proposed Extraordinary General Meeting, which was suggested earlier this year should it have been necessary to vote to approve a new external auditor. Since Rusneftegaz has retained the services of Deloitte’s immediate successor, it was not considered necessary to assemble such a gathering. Despite this, the majority of undertakings in 2023 are anticipated to proceed as normal, with production reports to continue to be published one month after the cessation of each quarter, and financial results presented nine weeks thereafter. Although, there may be discrepancies between the time this information is circulated to relevant parties and when this material is uploaded onto our website. Likewise, the annual shutdown of our administrative and office operations over the Christmas period is expected between 25 December 2023 and 8 January 2024. Whilst all the dates above are subject to change at the discretion of the board, management considers any such alterations unlikely at present. The new calendar can be viewed in its entirety on our website, and any queries regarding this announcement should be directed via the usual channels.