34. Segment information
Presented below is information about the Group’s operating segments for the years ended December 31, 2012 and 2011. Operating segments are components that engage in business activities that may earn revenues or incur expenses, whose operating results are regularly reviewed by the chief operating decision maker (CODM), and for which discrete financial information is available.
The Group manages its operations in 2 operating segments: Upstream and Downstream.
Upstream segment (exploration and production) includes the following Group operations: exploration, development and production of crude oil and natural gas (including joint ventures results), oil field services. Downstream segment (refining and marketing) processes crude into refined products and purchases, sells and transports crude and refined petroleum products (refining and marketing). Corporate centre expenses are presented within the Downstream segment.
Eliminations and other adjustments section encompasses elimination of inter-segment sales and related unrealised profits, mainly from the sale of crude oil and products, and other adjustments.
Intersegment revenues are based upon estimated market prices.
Adjusted EBITDA represents the Group’s EBITDA and its share in equity accounted investments’ EBITDA. Management believes that adjusted EBITDA represents useful means of assessing the performance of the Group’s ongoing operating activities, as it reflects the Group’s earnings trends without showing the impact of certain charges. EBITDA is defined as earnings before interest, income tax expense, depreciation, depletion and amortisation, foreign exchange gain (loss), other non-operating expenses and includes the Group’s share of profit of equity accounted investments. EBITDA is a supplemental non-IFRS financial measure used by management to evaluate operations.
For the year ended December 31, 2012 |
Upstream |
Downstream |
Eliminations |
Total |
Segment revenues |
|---|---|---|---|---|
Refined products, oil and gas sales and other revenues: |
||||
|
18,346 |
1,211,920 |
— |
1,230,266 |
|
347,819 |
4,139 |
(351,958) |
— |
Total revenues |
366,165 |
1,216,059 |
(351,958) |
1,230,266 |
Segment results |
Adjusted EBITDA |
175,373 |
147,733 |
— |
323,106 |
Depreciation, depletion and amortisation |
43,531 |
14,930 |
— |
58,461 |
Segment assets as of December 31, 2012 |
775,271 |
734,937 |
(210,100) |
1,300,108 |
Capital expenditure |
90,802 |
67,300 |
— |
158,102 |
For the year ended December 31, 2011 |
Upstream |
Downstream |
Eliminations |
Total |
Segment revenues |
|---|---|---|---|---|
Refined products, oil and gas sales and other revenues : |
||||
|
9,225 |
1,020,578 |
— |
1,029,803 |
|
305,558 |
3,148 |
(308,706) |
— |
Total revenues |
314,783 |
1,023,726 |
(308,706) |
1,029,803 |
Segment results |
Adjusted EBITDA |
136,070 |
164,007 |
— |
300,077 |
Depreciation, depletion and amortisation |
44,406 |
11,393 |
— |
55,799 |
Segment assets as of December 31, 2011 |
627,285 |
776,585 |
(285,711) |
1,118,159 |
Capital expenditure |
75,151 |
55,637 |
— |
130,788 |
The geographical segmentation of the Group’s revenue and capital expenditures for the years ended December 31, 2012 and 2011 is presented below:
For the year ended December 31, 2012 |
Russian Federation |
CIS |
Export and international sales |
Total |
|---|---|---|---|---|
Sales of crude oil |
12,988 |
29,783 |
347,953 |
390,724 |
Sales of petroleum products |
571,020 |
59,177 |
441,774 |
1,071,971 |
Sales of gas and gas condensate |
17,540 |
— |
6,281 |
23,821 |
Other sales |
27,503 |
625 |
2,423 |
30,551 |
Less custom duties and sales related excises |
— |
(4,646) |
(282,155) |
(286,801) |
Revenues from external customers, net |
629,051 |
84,939 |
516,276 |
1,230,266 |
For the year ended December 31, 2011 |
Russian Federation |
CIS |
Export and international sales |
Total |
|---|---|---|---|---|
Sales of crude oil |
2,052 |
36,259 |
304,758 |
343,069 |
Sales of petroleum products |
478,172 |
46,808 |
379,177 |
904,157 |
Sales of gas and gas condensate |
12,809 |
— |
5,366 |
18,175 |
Other sales |
23,723 |
377 |
2,095 |
26,195 |
Less custom duties and sales related excises |
— |
(8,386) |
(253,407) |
(261,793) |
Revenues from external customers, net |
516,756 |
75,058 |
437,989 |
1,029,803 |
Russian Federation |
CIS |
Export and international sales |
Total |
|
|---|---|---|---|---|
Non-current assets as of December 31, 2012 |
801,099 |
7,442 |
94,061 |
902,602 |
Capital expenditures for the year ended December 31, 2012 |
127,153 |
2,192 |
28,757 |
158,102 |
Non-current assets as of December 31, 2011 |
720,350 |
7,130 |
71,967 |
799,447 |
Capital expenditures for the year ended December 31, 2011 |
113,428 |
1,177 |
16,183 |
130,788 |
Adjusted EBITDA for the years ended December 31, 2012 and 2011 is reconciled below:
Year ended December 31, 2012 |
Year ended December 31, 2011 |
|
|---|---|---|
Profit for the year |
184,152 |
167,669 |
Total income tax expense |
35,839 |
39,996 |
Finance expense |
11,160 |
11,446 |
Finance income |
(3,174) |
(1,956) |
Depreciation, depletion and amortization |
58,461 |
55,799 |
Net foreign exchange gain |
(953) |
(740) |
Other (loss) / gain, net |
4,891 |
(925) |
EBITDA |
290,376 |
271,289 |
less Share of profit of equity accounted investments |
(28,281) |
(6,874) |
add Share of EBITDA of equity accounted investments |
61,011 |
35,662 |
Total adjusted EBITDA |
323,106 |
300,077 |
Notes in Consolidated Statements:
Consolidated Statement of Comprehensive Income for the Year Ended December 31, 2012 Back to list