We study the operational results of Tatneft for 2021 year

We study the operational results of Tatneft for 2021 year

"Tatneft" (MCX: TATN) — a large Russian oil and gas holding. Located in Tatarstan, engaged in oil and gas production, oil refining and petrochemical industry. Besides, the company operates its own filling station network, controls Zenit Banking Group and develops and manufactures equipment for the oil and gas industry.

11 января компания опубликовала операционные результаты по итогам 2021 of the year, в которых отразила рост основных производственных показателей относительно кризисного 2020 of the year.

I propose to assess the situation in the oil and gas industry and consider the dynamics of Tatneft's key production results over the past 5 years, to understand, получилось ли у компании вернуться к докризисным показателям и чего можно ожидать от финансовых результатов компании по итогам 2021 of the year.

Disclaimer: if we write, that something has risen or fallen by X% or X times, then by default we mean a comparison with the report data for the same period last year, unless otherwise stated.

Position in the industry

IN 2021 году мировой рынок нефти продолжил восстановление после одного из самых глубоких кризисов в отрасли. Let me remind you, that at some point the market prices of contracts for the supply of oil went negative - for the first time in history.

The largest oil-producing countries have agreed on restrictions on oil production with 1 May 2020 года в рамках сделки ОПЕК+, which are still active. Partly thanks to this, it was possible to stabilize the situation and restore oil prices., which since 2 половины 2021 года превысили докризисные уровни. On 11 January, the price of futures contracts for the supply of Brent crude oil exceeded 83 $ per barrel - a very comfortable level for oil companies.

Despite the fact that OPEC+ countries are gradually reducing restrictions, the world market in the coming years may face a shortage of oil against the backdrop of a general lack of funding for the oil sector in recent years. In particular, major Russian oil companies are already reporting, that they have practically exhausted free capacities for increasing production. All this can lead to, что свободные мощности закончатся уже в 2022 year, that is before, than all restrictions on production will be lifted.

What about production

The main production facilities of Tatneft are located in Russia, and owns one of the world's largest deposits - Romashkinskoye, чьи запасы нефти оцениваются в 5 млрд тонн.

Based on the results of 2021 года предприятия компании добыли более 27,8 million tons of oil, What's on 7% превышает результаты 2020 of the year. Рост связан с восстановлением добычи от низкой базы 2020 of the year, when oil production dropped to a minimum amid the crisis and restrictions. I will note, what is the result 2021 года объем добычи так и не вернулся к показателям докризисных лет, а с мая месячный объем находится примерно в одном диапазоне и не превышает 2,5 million tons.

Tatneft controls a number of oil refining and petrochemical production sites through the TANECO production complex.

IN 2021 году объем переработки нефтяного сырья на предприятиях «ТАНЕКО» вырос на 10% и составил рекордные 12,5 million tons. The volume of output of petroleum products also reached a historical maximum - increased by 14% и составил 12,9 million tons. About 1,5 млн тонн от этого объема пришлось на автобензин, and 5,8 млн тонн — на дизельное топливо.

Growth in the output of petroleum products is mainly due to the expansion of production capacities against the backdrop of the implementation of the investment program, as well as with an increase in demand for products in the Russian market.

Operating indicators of TATNEFT, million tons

Oil productionOil processingRelease of petroleum products
201728,97,98,2
201829,58,69,2
201929,810,110,1
202026,011,411,4
202127,812,512,9

What's the bottom line?

2021 the year turned out to be successful for Tatneft in terms of production results. Все основные операционные показатели выросли по сравнению с тяжелым для отрасли 2020 year. The company managed to break records in terms of refining and output of petroleum products, but oil production has not yet returned to pre-crisis levels. Note also, что с мая 2021 года объем добычи сохраняется примерно в одном диапазоне, despite gradual easing of oil production restrictions by OPEC+.

In recent years, the company has been systematically increasing the share of refining in the total volume of oil produced. If in 2017 году доля составляла лишь 27%, then in 2021 году показатель вырос до 45%. This should have a positive impact on the margins of the business due to the higher value added of petroleum products..

Сильные операционные показатели «Татнефти» на фоне высоких цен на нефть и нефтепродукты вселяют надежду на хорошие финансовые результаты по итогам всего 2021 of the year. So, revenue for the first 9 Months 2021 was 892,7 billion rubles, What's on 24% превышает результаты всего 2020 of the year. Given the strong operating results in 4 quarter, I guess, что выручка по итогам прошедшего года превысит 1,1 trillion rubles, and it will be a record.

IN 2022 году компания усилит свои позиции на рынке за счет M&A-deals. In January, the FAS approved the deal, по которой «Татнефть» становится владельцем шести нефтесервисных компаний холдинга «Таграс» с общей годовой выручкой около 16 billion rubles. These enterprises are located in Tatarstan and provide mechanical and drilling services, and also increase oil recovery. If the deal goes through, this will strengthen Tatneft's vertical integration and increase business efficiency through a synergistic effect.