Financial Data and Key Metrics Changes - In Q3 2021, EBITDA reached RUB 355 billion, doubling year-on-year for the nine months period [8] - Free cash flow totaled RUB 222 billion, more than doubling quarter-on-quarter [8] - The net profit was RUB 192 billion, nearly flat quarter-on-quarter [34] Business Line Data and Key Metrics Changes - Upstream segment EBITDA increased by 11% quarter-on-quarter, driven by output recovery and superior production mix [16] - Downstream EBITDA in Russia grew by 27% quarter-on-quarter, while EBITDA outside of Russia declined by 57% quarter-on-quarter [29] Market Data and Key Metrics Changes - The average Urals oil price increased by 6% quarter-on-quarter, while the net ruble price dropped by 2% due to tax lag effects and ruble appreciation [14] - Refining margins in Russia nearly doubled quarter-on-quarter, exceeding pre-pandemic levels [26] Company Strategy and Development Direction - The company plans to complete its long-term strategy update by Q1 2022 [11] - Focus on investments in Russia and tapping into hard-to-recover reserves through a joint venture with Gazprom Neft [20] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about oil demand recovery and plans to ramp up production if OPEC+ constraints are lifted [50] - The company expects hydrocarbon production to grow by about 4% in 2021, excluding the West Qurna-2 project [35] Other Important Information - The company successfully placed US$2.3 billion in debt, marking the largest single placement in its history [9] - The interim dividend for 2021 is set at RUB 340 per share, in line with the existing dividend policy [9] Q&A Session Summary Question: Expectations for high viscosity oil arrangements with the government - Management indicated that proposals are expected in Q1 2022, with potential production resumption from 2022 onwards [40] Question: Update on CapEx for 2022 - The basic CapEx target for 2022 is RUB 550 billion, with flexibility to adjust based on market conditions [45] Question: Launch timeline for the Grayfer field - The Valery Grayfer field is expected to be launched at the end of 2022 [50] Question: Ramp-up time for the delayed coker at Nizhny Novgorod - The unit is expected to ramp up to full capacity in the first half of 2022 [54] Question: CapEx for 2021 and cost transfers to next year - Management confirmed guidance for 2021 CapEx at RUB 450 billion, with some costs transferred to next year [58]
PJSC LUKOIL(LUKOY) - 2021 Q3 - Earnings Call Transcript