Tatneft Group
IFRS® ACCOUNTING STANDARDS CONSOLIDATED INTERIM CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
30 JUNE 2024
Contents | |
CONSOLIDATED INTERIM CONDENSED FINANCIAL STATEMENTS | |
Consolidated Interim Condensed Statement of Financial Position (unaudited) | 1 |
Consolidated Interim Condensed Statement of Profit or Loss and Other Comprehensive Income | |
(unaudited) | 2 |
Consolidated Interim Condensed Statement of Changes in Equity (unaudited) | 4 |
Consolidated Interim Condensed Statement of Cash Flows (unaudited) | 5 |
Notes to the Consolidated Interim Condensed Financial Statements (unaudited) | |
Note 1: Organisation | 7 |
Note 2: Basis of preparation | 7 |
Note 3: Adoption of new or revised standards and interpretations | 8 |
Note 4: Operating Environment of the Group | 8 |
Note 5: Taxes | 9 |
Note 6: Segment information | 9 |
Note 7: Related party transactions | 12 |
Note 8: Fair value | 14 |
Note 9: Subsequent events | 15 |
Joint-Stock Company | Ferro-Plaza Business Centre, |
"Technologies of Trust - Audit" | 14/3 Krzhizhanovsky street, bldg. 5/1, |
("Technologies of Trust - Audit" JSC) | Akademichesky municipal district, |
Moscow, Russian Federation, 117218 | |
www.tedo.ru | T: +7 495 967 60 00 |
Report on Review of Consolidated Interim Condensed Financial Statements
To the Shareholders and Board of Directors of Public Joint Stock Company TATNEFT named after V.D. Shashin:
Introduction
We have reviewed the accompanying consolidated interim condensed statement of financial position of Public Joint Stock Company TATNEFT named after V.D. Shashin and its subsidiaries (together - the "Group") as at 30 June 2024 and the related consolidated interim condensed statements of profit or loss and other comprehensive income, of changes in equity and of cash flows for the six-month period then ended, and the related explanatory notes. Management is responsible for the preparation and presentation of these consolidated interim condensed financial statements in accordance with International Accounting Standard 34 "Interim Financial Reporting". Our responsibility is to express a conclusion on these consolidated interim condensed financial statements based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of consolidated interim condensed financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated interim condensed financial statements are not prepared, in all material respects, in accordance with International Accounting Standard 34 "Interim Financial Reporting".
20 August 2024
Moscow, Russian Federation
Kriventsev Evgenii Nikolaevich is authorised to sign on behalf of the General Director of Joint-Stock Company "Technologies of Trust - Audit" (Principal Registration Number of the Record in the Register of Auditors and Audit Organizations (PRNR) - 12006020338), certified auditor (PRNR - 21906099944)
TATNEFT
Consolidated Interim Condensed Statement of Profit or Loss and Other Comprehensive Income (Unaudited)
(In million of Russian Rubles)
Six months ended | Six months ended | ||
Note | 30 June 2024 | 30 June 2023 | |
Revenue (excluding financial services) | 6 | 931,120 | 623,863 |
Costs and other expenses (excluding financial services) | |||
Operating expenses | (115,439) | (94,032) | |
Purchased crude oil and refined products | (211,245) | (85,903) | |
Exploration | (943) | (1,053) | |
Transportation | (46,759) | (33,353) | |
Selling, general and administrative | (52,440) | (44,276) | |
Depreciation, depletion and amortization | 6 | (29,791) | (30,626) |
Expected credit losses on financial assets net of reversal | (1,075) | 129 | |
Impairment losses on property, plant and equipment and other non- | |||
financial assets net of reversals | (305) | (14,286) | |
Taxes other than income taxes | 5 | (269,423) | (166,123) |
Export duties | (325) | (6,391) | |
Maintenance of social infrastructure and transfer of social assets | (6,371) | (6,835) | |
Total costs and expenses (excluding financial services) | (734,116) | (482,749) | |
Other operating (expense)/income, net | 6 | (28) | 16,287 |
Operating profit (excluding financial services) | 196,976 | 157,401 | |
Net interest, fee and commission and other operating | |||
income/(expenses) and gains/(losses) from financial services | |||
Interest, fee and commission income | 20,715 | 12,590 | |
Interest, fee and commission expense | (15,166) | (6,406) | |
Net income/(expense) on reversal/creating provision for credit losses | |||
associated with debt financial assets | 172 | (4,053) | |
Operating expenses | (3,840) | (4,873) | |
Gain/(loss) arising from dealing in foreign currencies, net | 312 | (26) | |
Other operating expenses, net | (450) | (181) | |
Total net interest, fee, commission and other operating | |||
income/(expense) and gain/(loss) from financial services | 1,743 | (2,949) | |
Other (expenses)/income | |||
Foreign exchange (loss)/gain, net | 6 | (5,347) | 29,643 |
Interest income (excluding financial services) | 7,398 | 4,031 | |
Interest expense, net of amounts capitalised (excluding financial | |||
services) | (6,807) | (4,951) | |
Share of results of associates and joint ventures, net | 793 | (170) | |
Total other (expenses)/income, net | (3,963) | 28,553 | |
Profit before income tax | 6 | 194,756 | 183,005 |
Income tax | |||
Current income tax expense | (33,828) | (31,091) | |
Deferred income tax expense | (9,542) | (4,243) | |
Total income tax expense | (43,370) | (35,334) | |
Profit for the period | 151,386 | 147,671 |
The accompanying notes are an integral part of these consolidated interim condensed financial statements.
2
TATNEFT
Consolidated Interim Condensed Statement of Profit or Loss and Other Comprehensive Income (Unaudited)
(In million of Russian Rubles)
Six months ended | Six months ended | |
Note | 30 June 2024 | 30 June 2023 |
Other comprehensive income/(loss) net of income tax: | ||
Items that may be reclassified subsequently to profit or loss: | ||
Foreign currency translation adjustments | 113 | 428 |
(Loss)/gain on debt financial assets at fair value through other | ||
comprehensive income, net | (1,713) | 136 |
Items that will not be reclassified to profit or loss: | ||
Loss on equity financial assets at fair value through other | ||
comprehensive income, net | (4) | (29) |
Other comprehensive (loss)/income | (1,604) | 535 |
Total comprehensive income for the period | 149,782 | 148,206 |
Profit/(loss) attributable to: | ||
- Shareholders of PJSC Tatneft | 151,016 | 147,830 |
- Non-controlling interest | 370 | (159) |
151,386 | 147,671 | |
Total comprehensive income/(loss) attributable to: | ||
- Shareholders of PJSC Tatneft | 149,908 | 148,326 |
- Non-controlling interest | (126) | (120) |
149,782 | 148,206 | |
Basic and diluted earnings per share (RR) | ||
Ordinary | 67.10 | 65.69 |
Preferred | 67.10 | 65.69 |
Weighted average shares outstanding (millions of shares) | ||
Ordinary | 2,103 | 2,103 |
Preferred | 148 | 148 |
The accompanying notes are an integral part of these consolidated interim condensed financial statements.
3
TATNEFT
Consolidated Interim Condensed Statement of Changes in Equity (Unaudited)
(In million of Russian Rubles)
Non-con- | Total | |||||||||
Total equity owned by shareholders of PJSC Tatneft | trolling | equity | ||||||||
interest | ||||||||||
Share | Additional | Treasury | Actuarial | Foreign | (Loss)/gain on | Retained | Total | |||
capital | paid-in | shares | loss on | currency | financial assets | earnings | ||||
capital | employee | translation | at fair value | |||||||
benefit plans | adjustments | through other | ||||||||
compre- | ||||||||||
hensive | ||||||||||
income, net | ||||||||||
Balance at 1 January 2023 | 11,767 | 84,437 | (10,359) | (1,150) | 1,090 | (189) | 1,010,027 | 1,095,623 | 8,821 | 1,104,444 |
Profit for the six months | - | - | - | - | - | - | 147,830 | 147,830 | (159) | 147,671 |
Other comprehensive income for the six | ||||||||||
months | - | - | - | - | 428 | 68 | - | 496 | 39 | 535 |
Total comprehensive income for the six | ||||||||||
months | - | - | - | - | 428 | 68 | 147,830 | 148,326 | (120) | 148,206 |
Dividends declared | - | - | - | - | - | - | (62,363) | (62,363) | (93) | (62,456) |
Balance at 30 June 2023 | 11,767 | 84,437 | (10,359) | (1,150) | 1,518 | (121) | 1,095,494 | 1,181,586 | 8,608 | 1,190,194 |
Balance at 1 January 2024 | 11,767 | 84,437 | (10,345) | (318) | 8,938 | 1,913 | 1,094,451 | 1,190,843 | 6,327 | 1,197,170 |
Profit for the six months | - | - | - | - | - | - | 151,016 | 151,016 | 370 | 151,386 |
Other comprehensive income/(loss) for the | ||||||||||
six months | - | - | - | - | 113 | (1,221) | - | (1,108) | (496) | (1,604) |
Total comprehensive income/(loss) for the | ||||||||||
six months | - | - | - | - | 113 | (1,221) | 151,016 | 149,908 | (126) | 149,782 |
Other movements | - | - | - | - | - | - | - | - | (16) | (16) |
Dividends declared (Note 1) | - | - | - | - | - | - | (56,647) | (56,647) | (96) | (56,743) |
Balance at 30 June 2024 | 11,767 | 84,437 | (10,345) | (318) | 9,051 | 692 | 1,188,820 | 1,284,104 | 6,089 | 1,290,193 |
The accompanying notes are an integral part of these consolidated interim condensed financial statements.
4
TATNEFT
Consolidated Interim Condensed Statement of Cash Flows (Unaudited)
(In million of Russian Rubles)
Six months ended | Six months ended | ||
Note | 30 June 2024 | 30 June 2023 | |
Operating activities | |||
Profit for the period | 151,386 | 147,671 | |
Adjustments: | |||
Net interest, fee and commission and other operating | |||
(income)/expenses/ and losses/(gains) from financial | |||
services | (1,743) | 2,949 | |
Depreciation, depletion and amortization | 6 | 29,791 | 30,626 |
Income tax expense | 43,370 | 35,334 | |
Expected credit losses on financial assets net of reversal | 1,075 | (129) | |
Impairment losses on property, plant and equipment and | |||
other non-financial assets net of reversal | 305 | 14,286 | |
Loss on disposals of interests in subsidiaries and associates, | |||
net | 60 | 131 | |
Income from changes in the fair value of financial assets | |||
measured at fair value through profit or loss, net | - | (48) | |
Gain from purchase | - | (17,834) | |
Effects of foreign exchange | 41 | 1,714 | |
Share of results of associates and joint ventures, net | (793) | 170 | |
Interest income (excluding financial services) | (7,398) | (4,031) | |
Interest expense, net of amounts capitalised (excluding | |||
financial services) | 6,807 | 4,951 | |
Other, net | 2,879 | (8,152) | |
Changes in working capital related to operating activities, | |||
excluding cash: | |||
Accounts receivable | 37,041 | (23,826) | |
Inventories | (21,146) | (13,101) | |
Prepaid expenses and other current assets | 9,363 | (26,364) | |
Securities at fair value through profit or loss | 530 | 59 | |
Accounts payable and accrued liabilities | (15,388) | (3,379) | |
Taxes payable, other than income tax | (10,583) | 15,225 | |
Net cash provided by operating activities before income tax | |||
and interest (excluding financial services) | 225,597 | 156,252 | |
Net interest, fee and commission and other operating | |||
income/(expenses) and gains/(losses) from financial services | 1,743 | (2,949) | |
Adjustments: | |||
Net (income)/expense on creating/reversal of provision for | |||
credit losses associated with debt financial assets | (172) | 4,053 | |
(Reversal of provision)/provision for losses on credit related | |||
commitments | (13) | 51 | |
Other | - | 13 | |
Changes in working capital related to financial services, | |||
excluding cash: | |||
Mandatory reserve deposits with the Bank of Russia | (94) | (525) | |
Due from banks | (889) | (1,860) | |
Loans to customers | (9,263) | 616 | |
Due to banks and the Bank of Russia | 8,677 | 11,336 | |
Customer accounts | 968 | (37,706) | |
Promissory notes issued | (175) | (105) | |
Securities at fair value through profit or loss | (1,300) | 966 | |
Other financial liabilities at fair value through profit or loss | 2,253 | (53) | |
Net cash provided by/(used in) operating activities from | |||
financial services before income tax | 1,735 | (26,163) | |
Income taxes paid | (32,669) | (35,461) | |
Interest paid (excluding financial services) | (1,539) | (1,174) | |
Interest received (excluding financial services) | 6,086 | 3,421 | |
Net cash provided by operating activities | 199,210 | 96,875 |
The accompanying notes are an integral part of these consolidated interim condensed financial statements.
5
TATNEFT
Consolidated Interim Condensed Statement of Cash Flows (Unaudited)
(In million of Russian Rubles)
Six months ended | Six months ended | ||
Note | 30 June 2024 | 30 June 2023 | |
Investing activities | |||
Additions to property, plant and equipment | 6 | (77,832) | (97,674) |
Proceeds from disposal of property, plant and equipment | 80 | 66 | |
Acquisition of interest in associate | (1,664) | - | |
Net cash flow from acquisitions of subsidiaries | - | (39,378) | |
Purchase of securities at fair value through other comprehensive | |||
income | (4,480) | (5,720) | |
Purchase of securities at amortised cost | - | (2,563) | |
Proceeds from disposal of securities at fair value through other | |||
comprehensive income | 2,880 | 1,817 | |
Proceeds from redemption of securities at amortised cost | 2,466 | 7,482 | |
Proceeds from sale of non-current assets held for sale | 284 | 203 | |
Proceeds from redemption of bank deposits measured at amortised | |||
cost | 12,190 | - | |
Placement of bank deposits measured at amortised cost | (21,552) | - | |
Proceeds from redemption of bank deposits measured at fair value | |||
through profit or loss | - | 1,726 | |
Proceeds from redemption of loans | 4,526 | 662 | |
Issuance of loans | (8,301) | (7,948) | |
Advance payment for acquisition of other non-current assets | - | (8,203) | |
(Acquisition)/proceeds from disposal of other non-current assets | (1,799) | 473 | |
Proceeds from government grants | 184 | 511 | |
Net cash used in investing activities | (93,018) | (148,546) | |
Financing activities | |||
Proceeds from issuance of debt (excluding financial services) | 27,166 | 2,569 | |
Repayment of debt (excluding financial services) | (28,045) | (5,789) | |
Repayment of principal portion of lease liabilities | (1,662) | (1,860) | |
Redemption of bonds | - | (2,008) | |
Dividends paid to shareholders | 1 | (79,716) | (16,196) |
Unclaimed dividends | 12,240 | 19,868 | |
Dividends paid to non-controlling shareholders | (96) | (93) | |
Net cash used in financing activities | (70,113) | (3,509) | |
Net change in cash and cash equivalents | 36,079 | (55,180) | |
Effect of foreign exchange on cash and cash equivalents | (796) | 11,883 | |
Cash and cash equivalents at the beginning of the period | 84,115 | 167,864 | |
Cash and cash equivalents at the end of the period | 119,398 | 124,567 |
The accompanying notes are an integral part of these consolidated interim condensed financial statements.
6
TATNEFT
Notes to the Consolidated Interim Condensed Financial Statements (Unaudited)
(In million of Russian Rubles)
Note 1: Organisation
PJSC TATNEFT n.a. V.D. Shashin (the "Company" or PJSC Tatneft) and its controlled subsidiaries (jointly referred to as the "Group") are engaged in crude oil exploration, development and production principally in the Republic of Tatarstan ("Tatarstan"), a republic within the Russian Federation. The Group also engages in refining of crude oil and associated petroleum gas processing, marketing of crude oil and refined products, production and sale of tires, financial services (Note 6).
The Company does not have an ultimate controlling party. As at 30 June 2024 and 31 December 2023 the government of Tatarstan controls about 36% of the Company's voting stock. Tatarstan also holds a "Golden Share", a special governmental right, in the Company.
At 30 June 2024 and 31 December 2023, the authorised, issued and paid share capital of PJSC Tatneft consists of 2,178,690,700 voting ordinary shares and 147,508,500 non-voting preferred shares; both classes of shares have a nominal value of RR 1.00 per share. At 30 June 2024 and 31 December 2023 treasury shares include 75.6 million ordinary shares of the Company owned by wholly-owned subsidiaries of the Group.
In June 2024, the shareholders of the Company approved dividends for the year ended 31 December 2023, in the amount of RR 87.88 per preferred and ordinary share, including previously paid interim dividends for the six and nine months of 2023, in the amount of RR 62.71 per preferred and ordinary share.
The Company is operating primarily in the Russian Federation. The address of its registered office is Lenina St., 75, Almetyevsk, Republic of Tatarstan, Russian Federation.
Note 2: Basis of preparation
The consolidated interim condensed financial statements have been prepared in accordance with IAS 34 "Interim Financial Reporting". The consolidated interim condensed financial statements should be read in conjunction with the annual consolidated financial statements for the year ended 31 December 2023, which have been prepared in accordance with IFRS Accounting Standards.
The accounting policies used in preparing these consolidated interim condensed financial statements were the same as those that applied to the consolidated financial statements for the previous financial year, except for the income tax accounting policy, which is reflected in these consolidated interim condensed financial statements based on an analysis of the weighted average annual income tax rate expected for the full financial year.
Use of estimates in the preparation of financial statements. The Group makes estimates and assumptions that affect the amounts recognised in the financial statements and the carrying amounts of assets and liabilities within the next financial year. Estimates and judgements are continually evaluated and are based on management's experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Judgements that have the most significant effect on the amounts recognised in the consolidated interim condensed financial statements and estimates that can cause a significant adjustment to the carrying amount of assets and liabilities within the next financial year include:
- Estimation of oil and gas reserves;
- Useful life of property, plant and equipment;
- Decommissioning provisions;
- Impairment of property, plant and equipment;
- Accounting of investments in JSC "National Non-State Pension Fund";
- Sale and purchase of oil under contracts for counter oil deliveries;
- Financial assets impairment;
- Financial instruments fair value estimation;
- Presentation of excise tax, including reverse excise.
The significant estimates and judgements used by The Group's management in the preparation of the consolidated interim condensed financial statements, are consistent with those that disclosed in the consolidated financial statements for the year ended 31 December 2023.
7
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