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Rosneft servicing debt due to prepayments from CNPC
Without Chinese money, Rosneft would not have been able to service the debt, analysts say: in the first quarter, it received a $ 12 billion prepayment. These funds were to be used for its development, the Vedomosti newspaper writes today.
There is an informal agreement between Rosneft and China that prepayment goes to production projects in the Far East, infrastructure construction, says the executive secretary of the Russian-Chinese Chamber Sergey Sanakoev: “But in fact, the funds that Rosneft has already received, it has the right to dispose of at your own discretion. " The prepayment can go to Rosneft's projects, and the funds that were supposed to go for capex - to pay off the debt.
The net debt of Rosneft in the first quarter of 2014 fell by 207 billion to 1,6 trillion rubles, the company reported in the IFRS report for this period. The debt was paid in the amount of 300 billion rubles, including the repaid 193 billion rubles raised for the acquisition of TNK-BP assets, the Rosneft presentation says. In the reporting period, the company placed 10-year exchange-traded ruble bonds at 35 bn. Rub.
A huge debt from Rosneft was formed after the acquisition of TNK-BP's 2013 in March for $ 61 billion (of which
The company repays the debt, but free cash flow also increases: in January - March it grew 3,7 times to 121 billion rubles. This is achieved at the expense of prepayments from CNPC, says Ankorinvest analyst Sergei Vakhrameev: if not for prepayments from CNPC, Rosneft would not be able to service the debt. "Without the Chinese prepayment, Rosneft would have to borrow to service the debt, and all its projects would go much slower."
Prepayments for long-term oil supplies in the first quarter amounted to 431 bn. Rub., The analysis of the financial condition and results of Rosneft's activities for three months 2014
In 2013, Rosneft and CNPC agreed to export 365 million tons of Russian oil to China over 25 years - in addition to 300 million tons that were contracted in 2009. The total amount of this transaction is $ 270 billion. Part of Rosneft "Will receive in advance -" about $ 70 billion, but this is only a prepayment, "said Russian President Vladimir Putin in the summer of 2013.
Also in October 2013 on pre-paid terms, Rosneft agreed to supply 100 million tons of Chinese Sinopec oil for 10 years. Then the parties signed a memorandum. The contract amount is $ 85 billion, Prime Minister D. Medvedev said. The prepayment is 25-30%, i.e. $ 21,3-25,5 billion. The contract has not been signed yet.
At the end of 2013, prepayment for oil supply contracts amounted to 470 billion rubles. Of this amount, 307 billion rubles. - payments From traders Glencore, Vitol, Trafigura, the company reported in the report for nine months 2013
Another 163 billion rubles. ($ 4,5 billion) received at the end of last year - part of the prepayment from CNPC. That is, Rosneft has already received about $ 16 billion from China. About 50% prepayment ($ 35 billion) Rosneft can get to 2015, experts said. We will take care of them [funds received as a prepayment], ”President Rosneft I. Sechin promised in February 2014: prepayment will go to strategic projects (the shelf, Eastern Petrochemical Company), and not to pay off loans.