5.2.Key Financial and Economic Performance Indicators of Transneft under RAS

Incomes and Expenses on Core Activities

Revenues from sale of goods (works, services), RUB mln
Indicator 2019 2018 Change 2019/2018 2017
RUB mln %
Total revenue 960,812 937,768 23,044 2.5% 835,937
oil transportation services 697,646 659,813 37,833 5.7% 627,759
petroleum products transportation services 61,096 66,453 (5,357) -8.1% 57,164
oil sales for export 186,900 200,286 (13,386) -6.7% 140,737
oil compounding services 6,258 5,849 409 7.0% 6,201
other 8,912 5,367 3,545 66.1% 4,076

Changes in revenues from the sale of goods (works, services) of the Company in 2019, as compared to 2018, were mainly due to:

  • an increase in revenues from crude oil transportation services, which was caused by changes in tariffs, volumes of transported oil and freight flow routes;
  • a decrease in revenue from petroleum products transportation services caused by changes in volumes of transported petroleum products and freight flows routes;
  • a decrease in revenue from the sale of oil for export under the agreement with China National United Oil Corporation mainly due to lower oil prices and the growth of US dollar exchange rate.
  • an increase in revenue for other activities.
Expenses on core activities, RUB mln
Indicator 2019 2018 Change 2019/2018 2017
RUB mln %
Expenses on core activities, total 856,021 880,450 (24,429) -2.8 774,371
oil transportation services 566,979 580,291 (13,312) -2.3 546,784
petroleum products transportation services 60,917 65,662 (4,745) -7.2 57,164
oil sales for export (selling expenses included) 186,687 200,731 (14,044) -7.0 140,799
oil compounding services 3,755 3,510 245 7.0 3,721
administrative costs 32,623 27,688 4,935 17.8 24,071
Other 5,060 2,568 2,492 97.0 1,832

Changes in expenses related to core activities in 2019 compared to 2018 were mainly due to:

  • a reduction in expenses under contracts for provision of services on acceptance/delivery, pumping, transshipment and oil discharge/loading with Transneft Group subsidiaries, which is caused by the reduction of the cost of services under the said contracts;
  • a reduction in expenses under contracts for petroleum products acceptance services, delivery (pumping) to destinations, as well as shipping at destinations, with Transneft Group subsidiaries, due to the reduction of petroleum products transportation volumes;
  • an increase in costs of other activities.
Net profit, RUB mln
Information on the net asset value, RUB mln
PROBLEMS OF MECHANICS

IN MECHANICS, A FRAME OF REFERENCE CONSISTS OF A REFERENCE POINT, ASSOCIATED COORDINATE SYSTEM AND TIME. THIS ALLOWS TO TRACK THE LOCATION OF THE POINT IN SPACE.

PROBLEM SITUATION: Despite the growth of oil throughput volume by about 30 million tonnes in 2019, Transneft managed to reduce its transportation services costs.

A = RUB 580,291 million (oil transportation costs in 2018)

В = RUB 566,979 million (oil transportation costs in 2019)

Determine:

Determine the amount of reduction in oil transportation costs in 2019 compared to the previous year.

Δ — reduction in oil transportation costs

CHOOSE THE CORRECT ANSWER:

SOLUTION:

We find how much the costs have decreased:
Δ = A — B = RUB 580,291 million — RUB 566,979 million = RUB 13,312 million


ANSWER: Δ = RUB 13,312 million. Compared to 2018, oil transportation costs decreased by RUB 13,312 million in 2019.



Receivables and Payables

Payables, RUB mln
Type of debt Year, ended Change 2019/2018 31 December 2017
31 December 2019 31 December 2018
Long-term payables 41,849 1 41,848 1
Settlements with other creditors 41,849 1 41,848 1
Short-term payables 203,745 191,635 12,110 160,093
Suppliers and contractors 111,959 113,951 (1,992) 76,617
Payments for oil transportation services 78,120 86,333 (8,213) 50,543
Payments for petroleum products transportation services 8,612 8,631 (19) 7,205
Payments for the purchase of oil 16,199 12,911 3,288 13,253
Payments for oil compounding services 387 361 26 351
Payments for construction, revamping, modernisation and acquisition of fixed assets and intangible assets 4,035 1,396 2,639 1,706
Other payments 4,606 4,319 287 3,559
Tax due 83 33 50 13
Advances received (excluding VAT) 56,465 53,286 3,179 49,023
Under oil transportation contracts 44,617 41,584 3,033 36,715
Under petroleum products transportation contracts 10,826 10,395 431 11,187
Under other contracts 1,022 1,307 (285) 1,121
Agency contract payments 20,574 19,821 753 22,754
Payments under agency contracts for oil transportation 1,491 1,655 (164) 1,442
Payments under agency contracts for petroleum products transportation 313 718 (405) 443
Settlements with Transneft Group’s subsidiaries under other agency contracts 18,361 16,937 1,424 20,502
Other agency contracts payments 409 511 (102) 367
CTG settlements 14,274 3,957 10,317 11,320
Settlements with other creditors 390 587 (197) 366
Total: 245,594 191,636 53,958 160,094
Receivables, RUB mln
Type of debt Year, ended Change 2019/2018 31 December 2017
31 December 2019 31 December 2018
Long-term receivables 3,016 1,609 1,407 4,019
Trade receivables 3 33 (30) 0
Other advances paid 0 0 0 3,424
Payments for accrued interest on loans issued 2,188 1,309 879 454
Payments for a sold share in a partnership 82 107 (25) 102
Payments for interest-free loans 13 11 2 21
Payments for other transactions 730 149 581 18
Short-term receivables 101,386 91,977 9,409 86,489
Trade receivables 18,555 17,016 1,539 15,474
Payments for oil transportation services 3,890 3,890 0 3,890
Provision for doubtful debts -3,890 -3,890 0 -3,890
Payments for oil compounding services 644 602 42 585
Agency contract payments 156 145 11 154
Payments for property rental services 75 83 (8) 42
Payments for oil sales for export 16,476 15,925 551 14,433
Payments for consulting services 97 90 7 184
Other 1,107 171 936 76
Advances paid 9,655 36,950 (27,295) 28,723
Under contracts for oil and petroleum products transportation 8,401 210 8,191 10,064
Under agency contracts for oil transportation 1,653 1,578 75 1,448
For the purchase of non-current assetsLine 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 2019 — RUB 23 million (as of 31 December 2018 — RUB 56 million); and Line 1150 Fixed Assets includes advances paid in connection with the creation and acquisition of fixed assets as of 31 December 2019 — RUB 140 million (as of 31 December 2018 — RUB 33,547 million). 164 33,603 (33,439) 15,974
Other 865 7,660 (6,795) 5,385
VAT on advances paid -1,428 -6,101 4,673 (4,148)
Tax and due payments 61,359 29,666 31,693 26,971
Сonsolidated taxpayers group (CTG) income tax 9,120 2,342 6,778 5,397
VAT 52,226 27,304 24,922 21,535
Other taxes and charges 13 20 (7) 39
Other debtors 32,506 29,002 3,504 36,072
Payments for accrued interest on loans issued 6,928 4,635 2,293 3,716
Agency contract payments 2,573 2,356 217 3,039
Payments by CTG members 1,292 551 741 514
Other payments 21,713 21,460 253 28,803
Provision for doubtful debts -20,689 -20,657 (32) (20,751)
Total: 104,402 93,586 10,816 90,508
Taxes and charges incurred during the year, RUB mln
Tax name 2019 2018 Change 2019/2018 2017
RUB mln %
Corporate income tax 21 85 (64) (75%) 0
Income tax accrued by the responsible CTG member 37,409 42,783 (5,374) (12.6%) 48,170
Income tax of controlled foreign companies (CFC) 0 6 (6) (100.0%) 0
Value-added tax (VAT) (101,967) (97,426) (4,541) 4.7% (80,284)
Property tax 362 73 289 395.9% 103
Other taxes and charges 3,243 3,187 56 1.8% 2,798
Total: (60,932) (51,292) (9,640) (29,213)
to the federal budget (96,192) (90,810) (5,382) 5.9% (72,889)
to regional and local budgets 35,235 39,493 (4,258) (10.8%) 43,660
to extrabudgetary funds 25 25 0 0.0% 15

In 2019, Transneft accrued and paid income tax as the responsible member of the CGT, which included 36 Transneft subsidiaries (35 in 2018)In accordance with Agreement on the Establishment of the CGT No. 175/TNF/12 dated 19 March 2012 (as amended by Agreement No. 12 dated 5 September 2018).