In 2019, the revenue of Transneft Group went up by RUB 83,871 million or 8,6% compared to 2018, mainly due to the revenues growth from oil transportation services and the inclusion of NCSP Group and NFOT in Transneft Group’s consolidated indicators. The revenue (excluding the sum received for oil sales for export) increased by 12.5% or RUB 97,257 million in 2019, accounting for 82.4% of the total revenue for the reporting year.
The growth of revenue from oil transportation services for 2019 was 7.9% or RUB 51,529 million year-on-year and was caused by changes in tariffs, transported volumes of crude and freight flows.
Revenues from petroleum product transportation services for the year ended 31 December 2019 decreased by RUB 3,891 million or 5.4%, compared to 2018, which was caused by a decrease in petroleum products transportation volumes and changes in freight flows.
|Indicator||2019||Share of the total revenue, %||2018||Share of the total revenue, %||Absolute change||Change, %||2017|
|Revenue from oil transportation services||703,416||66.1%||651,887||66.5%||51,529||7.9%||631,459|
|on the domestic market||262,803||24.7%||260,428||26.6%||2,375||0.9%||257,307|
|Revenue from petroleum products transportation services||68,276||6.4%||72,167||7.4%||(3,891)||(5.4%)||66,035|
|Revenue from compounding services||6,258||0.6%||5,849||0.6%||409||7.0%||6,201|
|Revenue from sales of oil on the domestic market||11,812||1.1%||6,122||0.6%||5,690||92.9%||9,445|
|Revenue from sales of petroleum products||9,051||0.9%||6,899||0.7%||2,152||31.2%||5,108|
|Other revenue||78,116||7.3%||36,748||3.8%||41,368||2.1 times||25,352|
|Total revenue (excluding the revenue from oil sales for export)||876,929||82.4%||779,672||79.6%||97,257||12.5%||743,600|
|Revenue from oil sales for export||186,900||17.6%||200,286||20.4%||(13,386)||(6.7%)||140,737|
Revenue from oil sales for export was influenced by oil supplies to China within the agreement with China National United Oil Corporation for crude oil supplies in the amount of 6 MTPA, signed for 20 years, effective since 01 January 2011. The said agreement was concluded to repay the loan provided by the China Development Bank. The required amounts of crude are purchased from Rosneft.
The decrease in oil sales for export revenues for 2019 by RUB 13,386 million or 6.7%, compared to the previous year, was mainly due to the decrease in the average crude oil price in USD per 1 barrel with the average USD exchange rate having increased in 2019 compared to 2018.
The 92.9% (or RUB 5,690 million) YoY increase of revenue from oil sales on the domestic market was caused by the growth of oil sales volumes and the average selling price.
Revenue from sales of petroleum products for 2019 increased by RUB 2,152 million or 31.2% compared to the previous year, due to a slight increase in sales volumes and the average selling price, as well as the inclusion of NCSP and its subsidiaries’ performance indicators in Transneft Group’s consolidated financial statements.
The 7.0% (or RUB 409 million) increase of revenue from oil compounding services was caused by a 1.6% increase in the volume of compounded oil and higher tariffs (40,531 thousand tonnes in 2019 vs 39,884 thousand tonnes in 2019).
The growth of other revenue amounted to RUB 41,368 million or 2.1 times in 2019 compared to 2018 and was mainly caused by the inclusion of NCSP and its subsidiaries’ performance indicators.
The Other Revenue indicator includes revenue from sale of stevedoring services, additional port and fleet services, oil and petroleum products storage services, communication, pipeline inspection, construction and connection to the trunk pipeline system services, information services, services related to oil transportation, as well as revenue from property lease, commodity resale, organisation of freight transportation and revenue from rendering other services.