2022 Annual Awards Bestowed
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.
Production Data for the Third Quarter
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.
Preliminary 2023 Calendar Published
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.
Rusneftegaz can publish results for the second quarter of the year as of and for the three and six months ended 30 June. 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.
For the second period of 2022, Rusneftegaz can announce that it has set a new company record for quarterly revenues totaling $196,1 million, in addition to a robust pre-tax profit of $63,8 million. Despite the fact the latter figure represents a minor recession of 7,5% from the previous three months when $68,9 million was earned, the profit for the second quarter is a marked 32,8% improvement year-on-year, when our financial performance was continuing to be affected by the coronavirus pandemic and a more nominal $48,0 million was amassed. On the other hand, our turnover was not only 28,1% higher than in the same timeframe as twelve months ago when $153,0 million was reported, but it has also expanded 6,0% from the $185,1 million disclosed for the opening quarter of 2022. Such lasting success is ultimately attributable to numerous factors, with the primary determinant being the end of the recent health crisis, meaning our organization can now finally realize the benefits of the investments made over the past decade. This spending has yielded production conducted with greater efficiency through the utilization of modern equipment, contemporary best practice and renovated units. Whilst it was clear internally to managers and engineers, our economic data from the past two years was considerably weighted by the costs of managing a pandemic, including having to purchase expensive screening and protection apparatus, and deploying policies in the best interests of employee health, rather than the technical and financial progress of Rusneftegaz. As a result, our board of directors announced in February that our five-year investment program had been revised and the new plan was due to be executed from the start of the second quarter. Consequently, our organization spent $159,4 million on new assets between April and June of this year, with management aiming to recover the days that have occurred since the advent of the decade.
Thus, notwithstanding the fact that this total will in all likelihood be the largest quarterly expenditure of the year, the monies invested in the remaining quarters of 2022 are set to be comparably as large and significant. Moreover, at the end of March expenditure on new properties amounted to $17,5 million for the year to date, but it was also the time Rusneftegaz published a strategy to end remaining virus mitigation measures. Therefore, in May our organization managed to return all our administrative personnel to their respective offices and workstations full-time, having fully abolished remote working practices in conjunction with the removal of all distancing measures. This increased output is also exemplified in our production data for the second quarter, with 1,50 million barrels of crude being extracted, with electricity generation amounting to a further 2,31 TWh. Whilst the latter figure embodies a rise of 14,9% rise from the first period of 2022 when 2,01 TWh was created, it is also a 14,9% growth year-on-year on the previous total of 2,01 TWh. The rebound from the coronavirus pandemic is likewise demonstrated in the oil production figures, with the total exceeding the 1,37 million barrels extracted in the same period in 2021, although it is a minor 7,5% recession on the 1,53 million barrel yield three months ago. However, despite the fact these updates are fundamentally positive for our company, there continues to be matters of serious concern that may have a lasting impact on our business. The imposition of restrictions on Russian crude and refined products by the European Union, to take place incrementally from the end of this year, severely undermines our expansion plans for the months and years ahead. Nevertheless, our management has had adequate time to prepare for such an embargo, and has now developed a comprehensive plan to mitigate the effects of the punitive measures to be enforced. This includes variegating our sources of petroleum supply for our international trading operation, and focusing on developing our presence in new and emerging markets, such as East and South-East Asia. Management is also particularly interested in doing business in the Indian subcontinent, where numerous opportunities have emerged for Russian oil companies in recent times.
In addition to this newly revised plan, which is now ready to be implemented, the broader economic conditions are generally in our favor. Commodities prices continue to be high, and are forecasted to remain in excess of pre-pandemic values for the foreseeable future, or until those nations who have disavowed Russian petroleum are capable of adequately replacing the easily accessible supplies of refined products elsewhere. Likewise, our functional currency has now recovered from the historic lows reported earlier this year, with the Russian ruble now strengthening against the legal tender of other countries at a record rate. Howbeit, our board of directors believes it is currently too difficult to competently project how the currency will fare in the weeks and months ahead, due to the ongoing volatility in the market. This has been exacerbated by an ever-deteriorating geopolitical situation, which is not showing any signs of abating in the short term. It is the intransigent belief of many in our organization, including our leadership, that reliable projections will be problematic until this matter is suitably resolved. Furthermore, relations have deteriorated to such an extent that Rusneftegaz has been compelled to undertake additional security measures to protect our business from external threats, chiefly originating from the internet, following attacks against other Russian companies and organizations. Howbeit, this is a suitable example of how Rusneftegaz maintains sufficient resources to circumvent any challenges our entity may face, and the capability of our management to be proactive to issues that may arise. Ultimately, the remainder of 2022 is expected to be positive for Rusneftegaz, revenues and profits are projected to remain high in spite of recessions in key commodity prices. Whilst there may be unforeseen problems in the third and fourth quarter, particularly with regard to the broader diplomatic affairs, there is ample reason to not be concerned about any potential matters.
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.
Production Data for the Second Quarter
For the second quarter, Rusneftegaz can declare operational data in the following divisions:
Oil and Gas:
All production data is unaudited and derived from internal operations reports.
Please note that this is the sole official website for Rusneftegaz and all of our affiliate companies. Any party claiming to represent or act as an agent for either Rusneftegaz is not legitimate.