Sales Revenue
The decrease in the Group’s adjusted revenue for 2020 by RUB 56,036 million, or 6.4%, compared to 2019 is due to significant global market shocks caused by the coronavirus pandemic and lower oil turnover.
The decrease in revenue from oil transportation in 2020, compared to 2019, amounted to RUB 42,071 million, or 6.0%. This is due to a decrease in the volume of oil transportation and freight flows.
The growth in revenue from petroleum products transportation for the year ended 31 December 2020 compared to the same period in 2019 amounted to RUB 1,624 million, or 2.3%. It is due to changes in tariffs and freight flows.
Revenue from oil sales for export was influenced by oil supplies to China within the agreement with China National United Oil Corporation for crude oil supplies in the amount of 6 MTPA, signed for 20 years, effective since 1 January 2011. The said agreement was concluded to repay the loan provided by the China Development Bank. The loan was repaid in full in 2018. The required amounts of crude are purchased from Rosneft.
| Indicator | 2020 | Share of the total revenue, % | 2019 | Share of the total revenue, % | Absolute change | Change, % | 2018 |
|---|---|---|---|---|---|---|---|
| Revenue from oil transportation services | 661,345 | 68.7 | 703,416 | 66.1 | (42,071) | (6.0) | 651,887 |
| for export | 410,247 | 42.6 | 456,527 | 42.9 | (46,280) | (10.1) | 391,459 |
| on the domestic market | 251,098 | 26.1 | 246,889 | 23.2 | 4,209 | 1.7 | 260,428 |
| Revenue from petroleum products transportation services | 72,655 | 7.5 | 71,031 | 6.7 | 1,624 | 2.3 | 72,167 |
| Revenue from compounding services | 4,755 | 0.5 | 6,258 | 0.6 | (1,503) | (24.0) | 5,849 |
| Revenue from sales of oil on the domestic market | 5,958 | 0.6 | 11,812 | 1.1 | (5,854) | (49.6) | 6,122 |
| Revenue from sales of petroleum products | 6,259 | 0.7 | 9,052 | 0.9 | (2,793) | (30.9) | 6,899 |
| Revenue from commercial oil sales for export | 141,547 | 14.7 | 186,900 | 17.6 | (45,353) | 24.3 | 200,286 |
| Other revenue | 69,921 | 7.3 | 75,360 | 7.0 | (5,439) | (7.2) | 36,748 |
| Total revenue | 962,440 | 100.0 | 1,063,829 | 100.0 | (101,389) | (9.5) | 979,958 |
| Revenue from commercial oil sales for export | (141,547) | (14.7) | (186,900) | (17.6) | 45,353 | 24.3 | (200,286) |
| Total revenue (excluding the revenue from oil sales for export) | 820,893 | 85.3 | 876,929 | 82.4 | (56,036) | (6.4) | 779,672 |
The decrease in revenue from oil export sales in 2020 by RUB 45,353 million, or 24.3%, compared to 2019, is due to a decrease in the average oil price in USD per barrel for the year ended 31 December 2020, compared to the same period in 2019, with an increase in the average USD rate in the reporting period relative to the average USD rate for the same period of the previous year.
The decrease in revenue from sales of crude oil on the domestic market in 2020 by RUB 5,854 million, or 49.6%, compared to 2019 is due to a decrease in sales volumes and a decrease in the average selling price.
The decrease in revenue from the sale of petroleum products in 2020 by RUB 2,793 million, or 30.9%, compared to 2019 is due to a decrease in sales of petroleum products.
Oil Compounding
A decrease in revenue from oil compounding services in 2020 compared to 2019 by RUB 1,503 million, or 24.0%, is due to a 23.7% decrease in oil compounding volumes.
Other Revenue
The Other Revenue indicator includes revenue from sale of stevedoring services, additional port and fleet services, oil and petroleum products storage services, communication, pipeline inspection, construction and connection to the trunk pipeline system services, information services, services related to oil transportation, as well as revenue from property lease, commodity resale, organisation of freight transportation and other services.
The decrease in the Group’s other revenue for 2020 compared to 2019 is due to a decrease in revenue from the sale of stevedoring services due to a decrease in freight turnover and the sale in April 2019 of a NGT subsidiary company from the Group.