EBITDA Formation

RUB mln
Indicator 2019 2018 Change 2017
Profit for the year 197,104 225,413 (12.6%) 191,805
income tax expenses 47,914 52,298 (8.4%) 50,362
depreciation and amortisation 208,700 178,610 16.8% 152,637
result from oil sales to China 466 (439) х 419
net financial expenses 34,522 21,304 62.0% 15,632
share of the profit of subsidiaries and jointly run companies (16,073) (10,231) 57.1% (15,847)
other incomes/expenses, including 13,622 (33,519) х 13,686
Revaluation of the existing share in NCSP (Omirico Limited) to the fair value at the date of acquisition of the controlling stake - (25,371) х -
EBITDAExcluding crude oil sale and purchase transactions, based on contracts with Rosneft and China National United Oil Corporation. 486,255 433,436 12.2% 408,694

Earnings before interest, tax, depreciation and amortisation (EBITDA) is a useful indicator for investors, since it reveals the efficiency of the Group’s activities, including the Group’s ability to finance capital costs, acquire businesses and make other investments, as well as its ability to raise and repay loans. For some investors, analysts and rating agencies, EBITDA normally serves as the ground to evaluate and forecast oil and gas businesses’ cost and efficiency. This indicator should not be viewed separately, as an alternative to earnings for a given period, earnings from core activities or any other indicator showing the Group’s efficiency and reflected in the consolidated financial statement by IFRS.