Key Financial and Economic Performance Indicators of Transneft under RAS The financial statements are published on the Company’s website.

Incomes and Expenses on Core Activities

Revenues from sale of goods (works, services), RUB million
Indicator Amount Change
2018 2017 RUB million %
Total revenue 937,768 835,937 101,831 12.2
including        
oil transportation services 659,813 627,759 32,054 5.1
petroleum products transportation services 66,453 57,164 9 289 16.2
oil export 200,286 140,737 59,549 42.3
oil compounding services 5,849 6,201 −352 −5.7%
Other 5,367 4,076 1,291 31.7

Changes in revenues from the sale of goods (works, services) of the Company in 2018 as compared to 2017 was mainly due to:

  • An increase in revenues from oil and petroleum products transportation services, that was caused by changes in tariffs, transported volumes and freight flows
  • An increase in revenues from the sale of oil for export under an agreement with the China National United Oil Corporation due to an increase in oil prices and the US dollar exchange rate
Expenses on core activities, RUB million
Indicator Amount Change
2018 2017 RUB million %
Expenses on core activities, total 880,450 774,371 106,079 13.7
including:
oil transportation services 580,291 546,784 33,507 6.1
petroleum products transportation services 65,662 57,164 8,498 14.9
oil export (selling expenses included) 200,731 140,799 59,932 42.6
oil compounding services 3,510 3,721 −211 −5.7
administrative costs 27,688 24,071 3,617 15.0
Other 2,568 1,832 736 40.2

Changes in expenses related to core activities in 2018 compared to 2017 were mainly due to:

  • An increase in expenses under contracts with Transneft subsidiaries for provision of oil and petroleum products services in connection with changes in tariffs, volumes and destinations of freight flows
  • An increase in the cost of oil sold for export due to the increase in oil prices and the US dollar exchange rate

The change in the negative balance of interest receivable and interest payable in 2018 by RUB 4,768 million as compared to 2017 was mainly caused by exceeding the borrowing plan. The change in the negative balance of other revenues in 2018 by RUB –43,590 million as compared to 2017 was caused by accounting for reserves for the possible depreciation of financial investments.

Net profit, RUB million
Indicator Amount Change
2018 2017 RUB million %
Net profit 10,111 58,844 −48,733 −82.8

Changes in net profit in 2018 as compared to 2017 were mainly caused by the accrual of allowances for reserves for the possible depreciation of financial investments.

Net asset value, RUB million
Indicator 31 December 2016 31 December 2017 31 December 2018
Net asset value 183,387 189,974 180,174

Receivables and Payables

Receivables, RUB million
Type of debt 31 December 2018 31 December 2017 Change
Long-term receivables 1,609 4,019 −2,410
Trade receivables 33 0 33
Other advances paid 0 3,424 −3,424
Payments for accrued interest on loans issued 1,309 454 855
Payments for a sold share in a partnership 107 102 5
Payments for interest-free loans 11 21 −10
Payments for other transactions 149 18 131
Short-term receivables 91,977 86,489 5,488
Trade receivables 17,016 15,474 1,542
Payments for oil transportation services 3,890 3,890 0
Provision for doubtful debts –3,890 –3,890 0
Payments for oil compounding services 602 585 17
Agency contract payments 145 154 −9
Payments for property rental services 83 42 41
Payments for oil export 15,925 14,433 1,492
Payments for consulting services 90 184 −94
Other 171 76 95
Advances paid 36,950 28,723 8,227
Under contracts for oil and petroleum products transportation 210 10,064 −9,854
Under agency contracts for oil transportation 1,578 1,448 130
For the purchase of non-current assets Line 1110 “Intangible Assets” in the Balance Sheet also includes advances paid in connection with the creation and acquisition of intangible assets as of 31 December 2018 – RUB 56 million (as of 31 December 2017 – RUB 52 million); and Line 1150 “Fixed Assets” includes advances paid in connection with the creation and acquisition of fixed assets as of 31 December 2018 – RUB 33,547 million (as of 31 December 2017 – RUB 15,922 million) 33,603 15,974 17,629
Other 7,660 5,385 2,275
VAT on advances paid −6,101 −4,148 −1,953
Tax and due payments 29,666 26,971 2,695
Сonsolidated taxpayers group (CTG) income tax 2,342 5,397 −3,055
VAT 27,304 21,535 5,769
Other taxes and charges 20 39 −19
Other debtors 29,002 36,072 7,070
Payments for accrued interest on loans issued 4,635 3,716 919
Agency contract payments 2,356 3,039 −683
Payments by CTG members 551 514 37
Other payments 21,460 28,803 −7,343
Provision for doubtful debts −20,657 −20,751 94
Total 93,586 90,508 3,078
Payables, RUB million
Type of debt 31 December 2018 31 December 2017 Change
Long-term payables 1 1
Settlements with other creditors 1 1
Short-term payables 191,635 160,093 31,542
Suppliers and contractors 113,951 76,617 37,334
Payments for oil transportation services 86,333 50,543 35,790
Payments for petroleum products transportation services 8,631 7,205 1,426
Payments for the purchase of oil 12,911 13,253 −342
Payments for oil compounding services 361 351 10
Payments for construction, revamping, modernisation and acquisition of fixed assets and intangible assets 1,396 1,706 −310
Other payments 4,319 3,559 760
Tax due 33 13 20
Advances received (excluding VAT) 53,286 49,023 4,263
Under oil transportation contracts 41,584 36,715 4,869
Under petroleum products transportation contracts 10,395 11,187 −792
Under other contracts 1,307 1,121 186
Agency contract payments 19,821 22,754 −2,933
Payments under agency contracts for oil transportation 1,655 1,442 213
Payments under agency contracts for petroleum products transportation 718 443 275
Settlements with Transneft Group’s subsidiaries under other agency contracts 16,937 20,502 −3,565
Other agency contract payments 511 367 144
CTG settlements 3,957 11,320 −7,363
Settlements with other creditors 587 366 221
Total 191,636 160,094 31,542

Taxes

Taxes and charges incurred during the year, RUB million
Tax name 2018 2017 Change (+/–)
RUB million %
Corporate income tax 85 0 85 0
Income tax accrued by the responsible CTG member 42,783 48,170 −5,387 −11.2
Income tax of controlled foreign companies (CFC) 6 0 6
Value added tax (VAT) −97,426 −80,284 −17,142 −21.4
Property tax 73 103 −30 −29.1
Other taxes and charges 3,187 2,798 389 13.9
Total −51,292 −29,213 −22,079
including:        
to the federal budget −90,810 −72,889 −17,921 −24.6
to regional and local budgets 39,493 43,660 −4,167 −9.5
to extrabudgetary funds 25 15 10 66.7

In 2018, Transneft accrued and paid income tax as the responsible member of the consolidated taxpayers group (hereinafter referred to as CGT), which included 35 Transneft subsidiariesIn accordance with the agreement on the establishment of the CGT No. 175/TNF/12 dated 19 March 2012 (as amended by the Agreements No. 10 dated 6 December 2017 and No. 11 dated 6 March 2017) (same as in 2017).

Financial Performance Indicators under RAS

Estimated financial indicators of Transneft
Indicator 31 December 2018 31 December 2017 Absolute deviation, +/–
Return on equity (excluding oil sales to China) 5.55% 31.08% −25.53
Return on invested capital (by operating profit, excluding sale of oil to China) adjusted for nominal taxation rate (ROIC) 5.41% 5.34% 0.07
Return on sales excluding oil sales to China 7.83% 8.86% −1.03
Receivables turnover ratio 13.94 10.94 3.00
Quick ratio 0.74 0.83 −0.09
Current ratio 0.75 0.83 −0.08

Capital Investments

Transneft’s capital investments in 2018 amounted to RUB 10,149 million. Capital investments financing sources are presented in Appendix 10.