EBITDA Formation
RUB mln
| Indicator | 2020 | 2019 | Change, % | 2018 |
|---|---|---|---|---|
| Profit for the year | 132,677 | 197,104 | (32.7) | 225,413 |
| Adjustments: | ||||
| income tax expenses | 46,388 | 47,914 | (3.2) | 52,298 |
| depreciation and amortisation | 217,612 | 208,700 | 4.3 | 178,610 |
| result from oil sales to China | (644) | 466 | х | (439) |
| net financial expenses | 18,359 | 34,522 | (46.8) | 21,304 |
| share of the profit of subsidiaries and jointly run companies | 1,608 | (16,073) | х | (10,231) |
| other expenses, including | 26,624 | 13,622 | 95.4 | (33,519) |
| EBITDAExcluding crude oil sale and purchase transactions, based on contracts with Rosneft and China National United Oil Corporation. | 442,624 | 486,255 | (9.0) | 433,436 |
Earnings before interest, tax, depreciation and amortisation (EBITDA) is a useful indicator for investors, since it reveals the efficiency of the Group’s activities, including the Group’s ability to finance capital costs, acquire businesses and make other investments, as well as its ability to raise and repay loans. For some investors, analysts and rating agencies EBITDA serves as the ground to evaluate and forecast oil and gas businesses’ cost and efficiency. This indicator should not be viewed separately, as an alternative to earnings for a given period, earnings from core activity or any other indicator showing the Group’s efficiency and reflected in the consolidated financial statement by IFRS.