Extract from the consolidated financial statements of Zarubezhneft Group and information on the auditor, for the financial year
Zarubezhneft JSC annually engages external auditors for auditing the consolidated financial statements prepared under the IFRS. Selection of the audit company for audit of Zarubezhneft Group consolidated financial statements for 2019–2020 was carried out through an open request for proposals as per the requirements stated in Federal Law No. 223-ФЗ (FZ) “On Procurement of Goods, Work and Services by Certain Types of Legal Entities” dated July 18, 2011.
The winner of the tender and the auditor of the consolidated financial statements of Zarubezhneft Group for 2019–2020 was Deloitte & Touche CIS CJSC. Deloitte & Touche CIS JSC performs quality control of audit engagements as of and before the date of issue of the audit opinion, as well as inspection and monitoring of quality of auditor’s documentation for the audits prior completed. The cost of the services provided by Deloitte & Touche CIS JSC as to the audit of the consolidated financial statements for 2019, amounted to 11,159 thous RUB.
The independence of the auditor is confirmed by regular inspections of the Federal Treasury and the SRO the listed auditors belong to.
Extract from the consolidated financial statements of Zarubezhneft Group prepared under the ifrs, for the year ended on december 31, 2019, mm rub
| Million, Russian RUB | 2019 | 2018 |
|---|---|---|
| Revenue From Sales and Joint Operations Income | ||
| Sales of oil, gas and petroleum products | 65,300 | 58,521 |
| Support services and other sales | 9,521 | 10,996 |
| Joint venture income | 18,068 | 22,526 |
| Total Revenue From Sales and Joint Operations Income | 92,889 | 92,043 |
| Costs and Expenditures | ||
| Cost of purchased oil, gas and petroleum products | (40,637) | (35,953) |
| Business and operating expenses | (15,512) | (15,715) |
| Selling and marketing, general running, and administrative expenditures | (6,236) | (6,188) |
| Taxes other than the profit tax | (5,543) | (5,336) |
| Depreciation, depletion and amortization | (4,606) | (3,525) |
| Transportation expenditures | (2,600) | (2,244) |
| Geological exploration costs | (211) | (118) |
| Export duty | (342) | (655) |
| Other income/(expenses), net | 2,209 | (544) |
| Profit from operating activities | 19,411 | 21,765 |
| Expenditures on assets impairment, net | (413) | (6,977) |
| Financial income | 999 | 595 |
| Financial expenditures | (806) | (1,862) |
| Currency differences, net | (2,918) | 4,042 |
| Profit before profit tax | 16,273 | 17,563 |
| Current profit tax | (1,888) | (4,030) |
| Deferred profit tax | (932) | (1,943) |
| NET PROFIT FOR THE YEAR | 13,453 | 11,590 |
| Net profit/(loss) for the year, attributable to: | ||
| Parent company shareholder | 13,310 | 11,837 |
| Minority shares | 143 | (247) |
| 13,453 | 11,590 | |
| OTHER COMPREHENSIVE INCOME/(EXPENSES) | ||
| Items Subject to Reclassification to Profits and Losses | ||
| Effect of translation to presentation currency | (7,257) | 12,246 |
| Cash flow hedge result | - | 323 |
| Other Comprehensive Income/(Expenses) for the Year less Profit Tax | (7,257) | 12,569 |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 6,196 | 24,159 |
| Other comprehensive income/(expenses) for the year, attributable to: | ||
| Parent company shareholder | 5,426 | 24,960 |
| Minority shares | 770 | (801) |
| 6,196 | 24,159 |
| Million, Russian RUB | December 31, 2019 | December 31, 2018 |
|---|---|---|
| ASSETS | ||
| Non-Current Assets | ||
| Property, plant and equipment | 40,924 | 38,583 |
| Investment in Joint Ventures | 74,822 | 87,653 |
| Debt securities | 4,230 | - |
| Deferred tax assets | 1,104 | 1,629 |
| Other non-current assets | 3,028 | 2,296 |
| 124,108 | 130,161 | |
| Current Assets | ||
| Inventories | 4,427 | 8,943 |
| Trade and other receivables | 5,447 | 4,773 |
| Dividends debt | 5,111 | 9,383 |
| Taxes recoverable and tax prepayments | 1,676 | 1,139 |
| Borrowings issued | 4,160 | 4,458 |
| Debt securities | 6,861 | 1,062 |
| Deposits, cash and cash equivalents | 35,387 | 32,836 |
| Other current assets | 1,146 | 1,086 |
| 64,215 | 63,680 | |
| TOTAL ASSETS | 188,323 | 193,841 |
| EQUITY CAPITAL AND LIABILITIES | ||
| Capital and Provisions | ||
| Authorized capital | 50,729 | 50,729 |
| Other provisions | 14,310 | 13,243 |
| Provision for translation to presentation currency | 22,284 | 30,168 |
| Undistributed profit | 57,624 | 51,873 |
| Parent company shareholders’ equity | 145,007 | 146,013 |
| Minority shares | (8,207) | (9,485) |
| TOTAL CAPITAL AND PROVISIONS | 136,800 | 136,528 |
| Long-Term Liabilities | ||
| Long-term loan liabilities | 14,743 | 15,231 |
| Long-term estimated liabilities | 10,988 | 10,195 |
| Deferred tax liabilities | 5,716 | 5,320 |
| 31,447 | 30,746 | |
| Short-Term Liabilities | ||
| Short-term loan liabilities | 6,441 | 10,975 |
| Trade and other payables | 8,291 | 8,555 |
| Short-term estimated liabilities | 1,424 | 1,448 |
| Tax liabilities | 1,623 | 2,871 |
| Derivative financial instruments | 186 | 1,327 |
| Other short-term liabilities | 2,111 | 1,391 |
| 20,076 | 26,567 | |
| Total liabilities | 51,523 | 57,313 |
| Total capital and liabilities | 188,323 | 193,841 |