Long-Term Development Programme
The Transneft Long-Term Development Programme (hereinafter referred to as the LDP) was approved by the Transneft Board of Directors together with the Strategy in 2014. It specifies the lists of means and specific measures to achieve strategic development goals of Transneft, defined in the Strategy, within the set deadlines, with indication of the level and sources of their financing. The LDP updated in 2019 indicates the current and expected performance of Transneft till 2024.
| Development and upgrading | Increasing the capacity of oil and petroleum products trunk pipelines to provide for transportation of crude planned to be extracted by oil companies both from fields currently being used and from prospective fields. The increased capacity will also ensure transportation of planned volumes of petroleum products from currently operating and new refineries |
| Innovations | Innovative development of operational activities |
| Effectiveness | Raising energy efficiency by taking energy saving measures |
| Implementing a programme for cutting pipeline construction and operation costs | |
| Ensuring labour productivity at the level of the best foreign pipeline transportation companies | |
| Reliability | Ensuring reliability of the operated oil and petroleum products trunk pipeline system: inspection-based revamping and modernisation of fixed assets |
| Developing benefits for the Company’s employees | |
| Environmental and Industrial Safety | Raising the level of environmental and industrial safety at the Company’s operating facilities |
| External and Internal Communications | Shaping the corporate identity and promoting the Company’s unified brand |
| Providing advertising support of the Company’s activities in the external environment | |
| Shaping and developing an intra-corporate communications system |
Audit of the Transneft Long-Term Development Programme Implementation
The joint-stock company KPMG conducted an audit of Transneft’s Long-Term Development Programme implementation in 2020. The audit resulted in the issue of an opinion of an independent auditing organisation according to which the Report on the Long-Term Development Programme Implementation and the Execution of the Transneft Key Performance Indicators for 2020 was prepared in compliance with the applicable acts and does not contain any significant deviations.
| Indicator Name | Units of Measurement | 2018 actual | 2019 actual | 2020 | |
|---|---|---|---|---|---|
| target | actual | ||||
| Oil turnover | bn tkm | 1,217.4 | 1,247.6 | 1,254.6 | 1,132.2 |
| Volume of petroleum products transported via the Transneft system | mln tonnes | 39.2 | 37.8 | 40.9 | 37.9 |
| Reduction of specific electricity consumption during oil transportation via trunk pipelines under comparable conditions | % | 0.75 | 1.16 | 0.8 | 2.2 |
| Total debt to EBITDA ratio | - | 1.4 | 1.3 | no more than 2.5 | 1.3 |
| Net profit margin (excluding the impact of investments and currency exchange differences) | % | 29.1 | 24.6 | 23.6 | 17.7 |
| Reduction of capital costs | RUB mln | 4,218 | 4,014 | 4,095 | 4,142 |
| Reduction of operating costs | RUB mln | 5,214 | 5,853 | 4,865 | 6,877 |
| Financing R&D and innovation projects | % | 1.41 | 1.41 | 1.42 | 1.42 |
In 2020, amid the spread of the COVID-19 coronavirus infection, a significant drop in demand in strategically important industries was recorded, which, in turn, influenced the degree of achievement of the Transneft planned performance indicators for 2020.
Changes in the Strategy and the Long-Term Development Programme
Due to the consequences of the spread of the new coronavirus infection
The adjustment of the Strategy is planned after the approval of the General Development Plan for the Russian Oil Sector for the period up to