Russia (bbabo.net), - The net profit of Rosneft in 2021 reached 883 billion rubles, according to the company's published reports. This is almost seven times more than in 2020. The dynamics of net profit growth in 2021 became one of the highest in the industry.

Rosneft's EBITDA in 2021 almost doubled in annual terms and amounted to 2.330 trillion rubles. This is the highest level of EBITDA in the history of Rosneft. The EBITDA margin increased over the same period by 5.7 percent and amounted to 26.1 percent. According to this indicator, Rosneft outperformed international competitors: Chevron - 24%, Shell - 20%, BP - 18%. EBITDA in 2021 exceeded analysts' expectations, which were at the level of 2.318 trillion rubles.

The increase in EBITDA in annual terms in the company is explained by the efforts of management, which were aimed at maintaining a low level of specific operating costs, as well as constant control over costs.

Rosneft's revenue in 2021 grew by more than 52 percent in rubles (up to 8.761 trillion rubles) and by 46 percent in dollars (up to $121.1 billion). Revenue for the year exceeded forecasts, which were at the level of 8.733 trillion rubles.

The company's free cash flow also showed growth in 2021 and amounted to 1.044 trillion rubles ($14.3 billion), which is 2.5 times more than in 2020. According to this indicator, Rosneft outperforms some international competitors in the industry. For comparison, BP's free cash flow in 2021 was $12.7 billion.

Compared to 2020, the average daily production of liquid hydrocarbons in 2021 increased by 2.3 percent to 3.91 million barrels per day. Average daily gas production in 2021 increased by 15.9 percent year-on-year to 177.4 million cubic meters per day.

During the year, the number of new wells put into operation increased by 26 percent, exceeding 3.2 thousand units. Among the largest discoveries in 2021 can be attributed to the unique in terms of reserves gas condensate field named after. E. Zinicheva in the Krasnoyarsk Territory with recoverable gas reserves of 384 billion cubic meters under the category AB1C1 + B2C2, as well as a large Kederginskoye gas field in Yakutia with recoverable gas reserves of more than 43 billion cubic meters under the category AB1C1 + B2C2.

The implementation of a comprehensive program for the development of a new oil and gas province in the north of the Krasnoyarsk Territory as part of the flagship Vostok Oil project, as well as the increase in drilling by RN-Yuganskneftegaz, were reflected in the growth of capital expenditures, which in 2021 amounted to 1.049 trillion rubles ($14.2 billion ). This is 336 percent more than a year earlier.

Rosneft has traditionally focused on cost control, and as a result, the company's unit production costs fell by 3.5 percent to a five-year low of $2.7 per boe. For comparison: the same figure for British BP (excluding Rosneft's production) is $6.8 per boe.

The value of the net debt/EBITDA indicator in dollar terms almost halved at the end of the year, to 1.3x. This is the lowest value in the last two years.

In November, Rosneft completed the payment of dividends for the first half of 2021 in the amount of 191 billion rubles (18.03 rubles per share) ahead of schedule. This figure is a record for the company's interim dividends. Recall that the dividend payout ratio of an oil company in the amount of at least 50% of net profit under IFRS is one of the highest in the industry.

“Given the company’s commitment to a dividend policy, earnings for 2021 will provide a record level of dividends,” said the head of the company, Igor Sechin. “This is fully in line with the goals of the company’s strategy to increase payments to shareholders and increase share returns.”

Analysts at the Russian investment company BCS expect even greater growth in Rosneft's profits in 2022 and, accordingly, dividend payments. According to BCS forecasts, the company's net profit next year could amount to $21.5 billion, which will lead to an increase in dividends to 76 rubles per share.

"Rosneft's dividend yield for 2021 and 2022 should be very decent - according to our estimates, at 9 percent and 14 percent, respectively," BCS analysts say. "We also believe that the consensus forecast for profit in 2022 will grow."

In general, the investment community highly appreciates Rosneft's growth potential. JP Moan forecasts the cost of the company's GDR at $12, Goldman Sachs and UBS - $11.5, Bank of America Merrill Lynch - $11.2, Moan Stanley - $11.1, Raiffeisen Bank and Renaissance Capital - $11.

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