On June 1, 2018, Transneft released consolidated interim condensed financial statements prepared according to International Financial Reporting Standards (IFRS) for the three months that ended on March 31, 2018. Crude oil delivery for the three months that ended on March 31, 2018 amounted to 116.5 million tons, 1.2 million tons or 1.0 percent down year-on-year. Oil freight turnover decreased by 1.8 billion ton-km or by 0.6 percent.

Petroleum products deliveries for the three months that ended on March 31, 2018 came to 9.9 million tons. The growth year-on-year amounted to 1.8 million tons, or 22.2 percent.

Transneft’s revenue grew by RUB6.2 billion, or 2.8 percent, mainly due to higher revenues from oil transportation, exports, and other earnings.

With account for inflation, operating expenses (less oil exports, depreciation, and amortization) rose by 2.8 percent year-on-year, principally as a result of higher labor, social security, and insurance costs, as well as mounting property taxes. The growing labor, insurance, and social security costs are the result of higher insurance premiums paid into government budgetary funds, the indexation of wages in 2017, higher headcount, and the commissioning of new trunk pipeline facilities.

Transneft’s EBITDA went down by RUB2.9 billion, or 2.7 percent, amounting to RUB107.5 billion at the end of the reporting period.

Profits for the reporting period declined by RUB32.5 billion, or 40.9 percent, mainly as a consequence of the exchange rate impact. The fall in profits may also be ascribed to the impact of interest payments and a decrease in profits at Transneft’s affiliated and jointly-controlled companies. The adjusted earnings for the period decreased by RUB1.5 billion, or 2.7 percent, discounting the factors unrelated to production activities.