Oil rises in price amid strong stats from China, supporting investor optimism about the prospects for oil demand.
The purchasing managers’ index (PMI) in the processing industry of China in March rose to a maximum since December 51.9 points from 50.6 points in February, according to data from the State Statistical Office (GSO). Experts polled by The Wall Street Journal, on average, expected the indicator to rise to 51.2 points.
The focus of the market on Wednesday is the meeting of the OPEC + ministerial monitoring committee, which will assess the situation on the market before the discussion of oil production quotas by the ministers of the states in May. The ministerial meeting will take place on Thursday. At a meeting on Tuesday, the OPEC + technical committee considered the extension of the current quotas for May and the preservation of Saudi Arabia’s voluntary restrictions on 1 million barrels of oil per day as the main option, a source in one of the delegations told Interfax.
According to Bloomberg, citing delegates, experts from the technical committee have lowered their forecast for oil demand for 2021. According to the new forecast, demand will increase this year by 5.6 million barrels per day (b / d), up from 5.9 million b / d, as previously expected.
The cost of May futures for Brent oil on the London stock exchange ICE Futures by 8:29 Moscow time on Wednesday is $ 64.46 per barrel, which is $ 0.32 (0.5%) higher than the price at the close of the previous session. As a result of trading on Tuesday, these contracts fell by $ 0.84 (1.3%) – to $ 64.14 per barrel.
The price of futures for WTI crude oil for May in electronic trading on the New York Mercantile Exchange (NYMEX) by this time increased by $ 0.29 (0.48%) – up to $ 60.84 per barrel. On Tuesday, the value of these contracts fell by $ 1.01 (1.6%) to $ 60.55 per barrel.
Tatneft in the 4th quarter received 24.9 billion rubles. net profit
Net profit of Tatneft in the fourth quarter of 2020 decreased by 30% – to 24.893 billion rubles compared to 35.745 billion rubles in the third quarter, follows from the company’s reporting. Meanwhile, in annual terms, net profit for this period increased by 1.3 times. The indicator turned out to be below the consensus forecast of analysts surveyed by Interfax – 35 billion rubles.
Revenue of Tatneft in the fourth quarter increased by 6.1% compared to the third, to 198.7 billion rubles, but fell by 17.5% compared to the same period in 2019. Revenue for the entire 2020 fell by 22.7%, to 720.6 billion rubles.
EBITDA of Tatneft in the fourth quarter decreased by 15.2%, to 49.5 billion rubles, but increased by 15.8% compared to the fourth quarter of 2019. In 2020, EBITDA fell by 38%, to 179.9 billion rubles.
Free cash flow in the fourth quarter of 2020 increased by 34.5% compared to the previous quarter, to RUB 31.3 billion. At the end of 2020, this figure decreased by 37.4%, to 95.7 billion rubles.
TATNEFT’s revenue from oil sales in the fourth quarter compared to the third increased by almost 12%, to 85.9 billion rubles, from the sale of oil products – by 7%, to 87.8 billion rubles. Revenue from the sale of petrochemical products (mainly tires) increased by 9.1% to RUB 14.6 billion. Revenue growth in the fourth quarter was driven by higher oil prices and increased sales of refined products.
For the entire 2020, Tatneft’s revenue from oil sales fell by almost 40%, to 295 billion rubles, and oil products – by 14.7%, to 322.7 billion rubles. At the same time, income from the sale of petrochemical products for the year increased by 11.3%, to 53.3 billion rubles.
In the fourth quarter, Tatneft (MCX: TATN ) exported about 64% of all oil sold, up from 54% in the third quarter of 2020. At the same time, about 95% of oil was transported through the Druzhba pipeline, mainly to Poland and Slovakia (94% in the third quarter – IF).
In the fourth quarter, Tatneft increased its export of oil products to 1.4 million tons, compared to 1.05 million tons in the third quarter.
At the end of 2020, Tatneft exported 56% of all oil sold, in 2019 – 60%. At the end of the year, exports of petroleum products reached 5.7 million tons, compared to 5.1 million tons in 2019.