Tatneft Group
IFRS® ACCOUNTING STANDARTS CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR'S REPORT
31 DECEMBER 2024
Contents | |
INDEPENDENT AUDITOR'S REPORT | |
CONSOLIDATED FINANCIAL STATEMENTS | |
Consolidated Statement of Financial Position at 31 December 2024 | 1 |
Consolidated Statement of Profit or Loss and Other Comprehensive Income | |
for the year ended 31 December 2024 | 2 |
Consolidated Statement of Changes in Equity for the year ended 31 December 2024 | 4 |
Consolidated Statement of Cash Flows for the year ended 31 December 2024 | 5 |
Notes to the Consolidated Financial Statements | |
Note 1: Organisation | 7 |
Note 2: Basis of preparation | 7 |
Note 3: Cash and cash equivalents | 7 |
Note 4: Accounts receivable | 8 |
Note 5: Financial services: Loans to customers | 10 |
Note 6: Other financial assets | 11 |
Note 7: Inventories | 12 |
Note 8: Prepaid expenses and other current assets | 12 |
Note 9: Property, plant and equipment | 13 |
Note 10: Right-of-use assets and lease liabilities | 16 |
Note 11: Taxes | 17 |
Note 12: Debt | 18 |
Note 13: Accounts payable and accrued liabilities | 19 |
Note 14: Financial services: Due to banks and the Bank of Russia | 19 |
Note 15: Financial services: Customer accounts | 20 |
Note 16: Other long-term liabilities | 20 |
Note 17: Shareholders' equity | 21 |
Note 18: Employee benefit expenses | 23 |
Note 19: Interest expense (excluding financial services) | 23 |
Note 20: Interest and commission income and expense from financial services | 23 |
Note 21: Segment information | 24 |
Note 22: Related party transactions | 27 |
Note 23: Contingencies and commitments | 29 |
Note 24: Business combinations | 31 |
Note 25: Intangible assets | 32 |
Note 26: Other non-current assets | 32 |
Note 27: Financial risk management | 33 |
Note 28: Material accounting policy information | 48 |
Note 29: Critical accounting estimates and judgements in applying accounting policies | 56 |
Note 30: Adoption of new or revised standards and interpretations | 59 |
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 |
Independent Auditor's Report
To the Shareholders and Board of Directors of Public Joint Stock Company TATNEFT named after V.D. Shashin:
Opinion
In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of Public Joint Stock Company TATNEFT named after V.D. Shashin and its subsidiaries (together
- the "Group") at 31 December 2024, and the Group's consolidated financial performance and consolidated cash flows for the year then ended in accordance with IFRS Accounting Standards.
What we have audited
The Group's consolidated financial statements comprise:
- the consolidated statement of financial position at 31 December 2024;
- the consolidated statement of profit or loss and other comprehensive income for the year then ended;
- the consolidated statement of changes in equity for the year then ended;
- the consolidated statement of cash flows for the year then ended; and
- the notes to the consolidated financial statements, which include material accounting policy information and other explanatory information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the consolidated financial statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the Group in accordance with the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code) and the ethical requirements of the Auditor's Professional Ethics Code and Auditor's Independence Rules that are relevant to our audit of the consolidated financial statements in the Russian Federation. We have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
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Key audit matter | How our audit addressed the key audit matter | ||||||||
Estimation of oil and gas reserves | Regarding the update of the estimate of oil and gas reserves | ||||||||
We focused on this matter due to significant | performed during 2024 we (on a sample basis, where | ||||||||
applicable): | |||||||||
impact of the estimate of oil and gas reserves | |||||||||
• assessed appropriateness of the items selected for the 2024 | |||||||||
on the results of impairment testing, | |||||||||
depreciation, depletion and amortisation of | update based on the current production information and | ||||||||
property, plant and equipment related to the oil | remaining production periods; | ||||||||
and gas exploration and production, and the | • assessed the competence, capabilities and objectivity of the | ||||||||
amount of decommissioning provisions. Also, | |||||||||
internal experts performing the estimation; | |||||||||
the estimate of oil and gas reserves is an area | |||||||||
of significant judgement due to geological, | • | assessed appropriateness of | the methodology | and | key | ||||
technical and commercial uncertainties. | assumptions and estimates applied, among other things, in | ||||||||
Information about the estimation of oil and gas | the context | of the | current | production information | and | ||||
macroeconomic forecasts; | |||||||||
reserves is provided in Note 29 "Critical | |||||||||
accounting estimates and judgements in | • obtained an understanding of reasons for the changes in the | ||||||||
applying accounting policies" to the | estimate of oil and gas reserves compared to the previous | ||||||||
consolidated financial statements. | estimate. | ||||||||
Impairment of property, plant and equipment | In respect of certain cash-generating units the Group identified | ||||||||
We focused on this matter due to significance | indications of impairment (reversal of impairment) and prepared | ||||||||
calculations of recoverable amount based on expected | |||||||||
of the carrying amount of property, plant and | |||||||||
discounted cash flows. Regarding these calculations we (on a | |||||||||
equipment, significance of judgements and | |||||||||
sample basis, where applicable): | |||||||||
estimates applied in analysis of impairment of | |||||||||
these assets, and the effect of the current | • | assessed appropriateness of | the methodology | and | key | ||||
geopolitical environment and economic | assumptions and estimates applied, including consistency of | ||||||||
situation on the recoverable amount of these | the discount rates used with the range of acceptable values | ||||||||
assets. | considering current economic conditions and the business of | ||||||||
Information on property, plant and equipment, | the Group; | ||||||||
analysis of impairment of these assets and | • | tested input | data, | including | consistency of | the | used | ||
results of such analysis is disclosed in Note 9 | |||||||||
information about oil and gas reserves related to the upstream | |||||||||
"Property, Plant and Equipment" to the | |||||||||
assets with the estimates of the Group; | |||||||||
consolidated financial statements. | |||||||||
- tested mathematical accuracy of the calculations;
- compared carrying amount of the assets with their recoverable amount.
Other information
Management is responsible for the other information. The other information comprises Management's discussion and analysis of financial condition and results of operations for the years ended 31 December 2024 and 2023 (but does not include the consolidated financial statements and our auditor's report thereon), which we obtained prior to the date of this auditor's report, and the Integrated Annual Report for 2024 and Securities Issuer's Report for the 12 months of 2024, which are expected to be made available to us after that date.
Our opinion on the consolidated financial statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
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If, based on the work we have performed on the other information that we obtained prior to the date of this auditor's report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
When we read the Integrated Annual Report for 2024 and Securities Issuer's Report for the 12 months of 2024, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.
Responsibilities of management and those charged with governance for the consolidated financial statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS Accounting Standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group's financial reporting process.
Auditor's responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
-
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Group's internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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- Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the group as a basis for forming an opinion on the group financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The certified auditor responsible for the audit resulting in this independent auditor's report is Kriventsev Evgenii Nikolaevich.
12 March 2025
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)
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TATNEFT
Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2024
(In million of Russian Rubles)
Year ended | Year ended | |||
Note | 31 December 2024 | 31 December 2023 | ||
Revenue (excluding financial services) | 21 | 2,030,371 | 1,589,082 | |
Costs and other expenses (excluding financial services) | ||||
Operating expenses | (279,350) | (200,228) | ||
Purchased crude oil and refined products | (444,536) | (306,393) | ||
Exploration | (4,019) | (3,001) | ||
Transportation | (93,932) | (71,901) | ||
Selling, general and administrative expenses | (114,552) | (97,632) | ||
Depreciation, depletion and amortization | 9,21 | (62,238) | (60,647) | |
Expected credit losses on financial assets net of reversals | 4,6 | 759 | (566) | |
Impairment losses on property, plant and equipment and other non- | ||||
financial assets net of reversals | 9 | (6,576) | (21,732) | |
Taxes other than income taxes | 11 | (602,091) | (458,014) | |
Export duties | (888) | (17,616) | ||
Maintenance of social infrastructure and transfer of social assets | (16,811) | (12,023) | ||
Total costs and expenses (excluding financial services) | (1,624,234) | (1,249,753) | ||
Other operating (expenses)/income, net | 24 | (3,130) | 17,314 | |
Operating profit (excluding financial services) | 403,007 | 356,643 | ||
Net interest, fee and commission and other operating | ||||
income/(expenses) and gains/(losses) from financial services | ||||
Interest, fee and commission income | 20,21 | 46,108 | 28,294 | |
Interest, fee and commission expense | 20 | (34,178) | (15,962) | |
Net income/(expense) on recovery/creating provision for credit losses | ||||
on debt financial assets | 5,6 | 8,503 | (10,414) | |
Operating expenses | (8,475) | (9,187) | ||
Gain arising from dealing in foreign currencies, net | 377 | 477 | ||
Other operating expenses, net | (2,282) | (1,130) | ||
Total net interest, fee, commission and other operating | ||||
income/(expenses) and gains/(losses) from financial services | 10,053 | (7,922) | ||
Other income/(expenses) | ||||
Foreign exchange gain, net | 27 | 12,121 | 25,049 | |
Interest income (excluding financial services) | 18,982 | 10,367 | ||
Interest expense (excluding financial services) | 19 | (20,052) | (21,025) | |
Share of results of associates and joint ventures, net | (2,963) | 2,395 | ||
Total other income, net | 8,088 | 16,786 | ||
Profit before income tax | 421,148 | 365,507 | ||
Income tax | ||||
Current income tax expense | (79,871) | (73,172) | ||
Deferred income tax expense | (32,348) | (6,072) | ||
Total income tax expense | 11 | (112,219) | (79,244) | |
Profit for the year | 308,929 | 286,263 |
The accompanying notes are an integral part of these consolidated financial statements.
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TATNEFT
Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2024
(In million of Russian Rubles)
Year ended | Year ended | ||
Note | 31 December 2024 | 31 December 2023 | |
Other comprehensive income/(loss) net of income tax: | |||
Items that may be reclassified subsequently to profit or loss: | |||
Foreign currency translation adjustments | 8,022 | 7,848 | |
Loss on debt financial assets at fair value through other comprehensive | |||
income, net | (2,243) | (209) | |
Items that will not be reclassified to profit or loss: | |||
Gain on equity financial assets at fair value through other | |||
comprehensive income, net | 192 | 2,251 | |
Actuarial (loss)/gain on employee benefit plans | (77) | 832 | |
Other comprehensive income | 5,894 | 10,722 | |
Total comprehensive income for the period | 314,823 | 296,985 | |
Profit/(loss) attributable to: | |||
- Shareholders of PJSC Tatneft | 306,140 | 287,921 | |
- Non-controlling interest | 2,789 | (1,658) | |
308,929 | 286,263 | ||
Total comprehensive income/(loss) attributable to: | |||
- Shareholders of PJSC Tatneft | 312,683 | 298,703 | |
- Non-controlling interest | 2,140 | (1,718) | |
314,823 | 296,985 | ||
Basic and diluted earnings per share (RR) | |||
Ordinary | 17 | 136.03 | 127.93 |
Preferred | 136.03 | 127.93 | |
Weighted average shares outstanding (millions of shares) | |||
Ordinary | 17 | 2,103 | 2,103 |
Preferred | 148 | 148 |
The accompanying notes are an integral part of these consolidated financial statements.
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TATNEFT
Consolidated Statement of Changes in Equity for the year ended 31 December 2024 (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)/gain | currency | financial | earnings | ||||
capital | on employee | translation | assets at fair | |||||||
benefit | adjustments | value through | ||||||||
plans | 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/(loss) for the year | - | - | - | - | - | - | 287,921 | 287,921 | (1,658) | 286,263 |
Other comprehensive income/(loss) for | ||||||||||
the year | - | - | - | 832 | 7,848 | 2,102 | - | 10,782 | (60) | 10,722 |
Total comprehensive income/(loss) for | ||||||||||
the year | - | - | - | 832 | 7,848 | 2,102 | 287,921 | 298,703 | (1,718) | 296,985 |
Other movements | - | - | 14 | - | - | - | - | 14 | (676) | (662) |
Dividends declared (Note 17) | - | - | - | - | - | - | (203,497) | (203,497) | (100) | (203,597) |
Balance at 31 December 2023 | 11,767 | 84,437 | (10,345) | (318) | 8,938 | 1,913 | 1,094,451 | 1,190,843 | 6,327 | 1,197,170 |
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 year | - | - | - | - | - | - | 306,140 | 306,140 | 2,789 | 308,929 |
Other comprehensive (loss)/income for | ||||||||||
the year | - | - | - | (77) | 8,022 | (1,402) | - | 6,543 | (649) | 5,894 |
Total comprehensive (loss)/income for | ||||||||||
the year | - | - | - | (77) | 8,022 | (1,402) | 306,140 | 312,683 | 2,140 | 314,823 |
Other movements | - | - | - | - | - | - | - | - | 135 | 135 |
Dividends declared (Note 17) | - | - | - | - | - | - | (181,757) | (181,757) | (127) | (181,884) |
Balance at 31 December 2024 | 11,767 | 84,437 | (10,345) | (395) | 16,960 | 511 | 1,218,834 | 1,321,769 | 8,475 | 1,330,244 |
The accompanying notes are an integral part of these consolidated financial statements.
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