Tatneft-3 · RUS:TATN

Tatneft-3 — Tatneft — Investor Presentation (April 2012)

18 slides from Tatneft-3's investor presentation, April 2012

  1. Slide 1: Presentation to Investors

    Presentation to Investors April 2012 1

  2. Slide 2: 1. Operational Review

    1. Operational Review 2

  3. Slide 3: Strong Reserve Base

    Strong Reserve Base Proved Reserves Crude Oil and Condensate (billion bbl) 6,141 5,982 6,193 2009 2010 2011 Source: Tatneft 2011 Reserves Report by Miller & Lents, Ltd. Solid Basis for Stable Production  Substantial crude oil and condensate reserves – 6.2 billion barrels as of January 1, 2012  Lon

  4. Slide 4: Crude Oil Production

    Crude Oil Production 600 200 Production Dynamics 550 509 510 510 511 500 190 185.6 185.9 186.0 186.6 450 400 180 350 300 170 2008 2009 2010 2011 Average Daily Production, kbpd Total prodiction, mln barrels per year Estimated Production Forecast, in bbl Proved Developed Reserves 1,000,000,000 100,000

  5. Slide 5: Focus on Operational Efficiency

    Focus on Operational Efficiency Mostly Proved Developed Reserves 2011 Upstream Operational Highlights (mln bbl) 181  39 mln barrels of crude oil (over 20%) 2,368 produced in Tatarstan using tertiary enhanced oil recovery techniques  320 hydraulic fracturing jobs performed, 3,644 including 15 on ne

  6. Slide 6: Sales and Logistics

    Sales and Logistics Refined products sales Crude oil sales by destination market by destination market 200.3 4.5 200 191.3 186.5 Non-CIS 4 31% Volumes, mln tones Volumes, mln bbl 150 32% 29% 3.1 8% CIS 2.9 62% 6% 8% 3 100 Domestic 2 85% 85% 61% 62% 63% 9% 50 1 4% 3% 29% 0 11% 12% 0 2009 2010 2011 20

  7. Slide 7: 2. TANECO Refinery

    2. TANECO Refinery 7

  8. Slide 8: TANECO in Commercial Operation

    TANECO in Commercial Operation TANECO Operational  Commercial operation of the refinery started in December 2011  Refining depth increased to 71%, production of light products – up to 45% TANECO’s Initial Production Results (from December, 2011) in thousand tones Dec, 2011 Jan, 2012 Feb, 2012 Mar,

  9. Slide 9: TANECO – Phase 1B

    TANECO – Phase 1B Hydrocracker Facility (Phase 1B)  Construction works on the hydrocracker facility are in progress  The hydrocracker facility is expected to be completed and launched in 2013  The hydrocracking unit will process 2.9 mln MT of vacuum gasoil per year  Further development of the re

  10. Slide 10: 3. Bitumen (HVO) Production Pilot Project

    3. Bitumen (HVO) Production Pilot Project 10

  11. Slide 11: Overview of Bitumen Production Project

    Overview of Bitumen Production Project Project progress  Eleven pairs of wells drilled with seven of them currently producing  Six pairs of parallel horizontal SAGD-type wells and one horizontal well for CSS (cyclic steam stimulation)  Average well flow rate at Ashalchinskoye field exceeded 52 to

  12. Slide 12: 4. Financial Results Overview

    4. Financial Results Overview 12

  13. Slide 13: Consolidated Financial Statements: P&L and Cash Flow

    Consolidated Financial Statements: P&L and Cash Flow Consolidated P&L, in RR bln Chg %, Chg %, 2009 2010 2011 2010/2009 2011/2010 Revenues 380.6 468.0 615.9 23% 32% Costs and other deductions 311.9 403.9 525.2 29% 30% EBITDA (*) 82.9 73.7 96.1 -11% 30% EBITDA margin 22% 16% 16% Net income 54.4 46.7

  14. Slide 14: Cost Dynamics

    Cost Dynamics Lifting costs Y-o-Y, RR/bbl Quarterly lifting costs vs Brent price 200.7 200 RR/ bbl USD/ bbl 172.2 300 140 180 157.7 153.5 160 +16.6% 250 120 140 +12% 100 200 120 -3% 80 100 150 80 60 60 100 40 40 50 20 20 0 0 0 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 4Q'09 1Q'10 2Q'10 3Q'10 4Q'10 1Q'11 2

  15. Slide 15: Debt Profile

    Debt Profile Debt profile, in RR bln Debt reconciliation, in RR bln 120 100 Debt as of 31.12.2010 111.9 103.8 80 87.8 Partial repayments of $2 bln facility 60 75.2 (11.6) Debt/ EBITDA as of December 31, 2011: 1.03 2010 40 20 37.2 Partial repayments of $1.5 bln facility (16.8) 2009 0.6 0 2007 2008 20

  16. Slide 16: Revenue and Costs: 2011 vs 2010

    Revenue and Costs: 2011 vs 2010 RR bln 125.1 13.3 (0.4) 9.9 615.9 Increase by 147.9 bln RR Revenue 468.0 Revenue 2010 Crude Oil prices Refined Products Sales Volumes Petrochemicals and Revenue 2011 prices Other sales 18.2 3.3 17.1 54.9 27.8 525.2 Costs 403.9 Increase by 121.3 bln RR Costs 2010 Expor

  17. Slide 17: EBITDA and Net Income per bbl: 2011 vs 2010

    EBITDA and Net Income per bbl: 2011 vs 2010 RR/bbl (444.9) (97.6) (24.4) 792.3 (63.7) (12.6) (30.5) EBITDA, RR/ Increase by 30% 514.7 bbl 396.1 EBITDA Revenue Taxes Purchases Transport OPEX FX Other EBITDA 2011 2010 (444.9) (97.6) Net Income, (24.4) (63.7 ) (17.7) RR/bbl 792.3 (12.6) (53.1) Increase

  18. Slide 18: Important Notice

    Important Notice FOR INTERNATIONAL INVESTORS THIS PRESENTATION IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION AND MAY NOT BE REPRODUCED IN ANY FORM OR FURTHER DISTRIBUTED TO ANY OTHER PERSON OR PUBLISHED, IN WHOLE OR IN PART, FOR ANY PURPOSE. FAILURE TO COMPLY WITH THESE RESTRICTIONS MAY CONST

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