Operational and Financial Performance

High cost efficiency and smart allocation of upstream capex in 2018 helped the Company to maintain well-balanced production levels both by launching new projects and enhancing production at mature fields with the lowest unit upstream capex in the industry among public oil and gas companies.

In 2018, Rosneft maintained its steady leadership in the oil industry among public oil and gas companies in terms of unit production costs.

While most of its competitors demonstrate highly volatile performance going into negative zone in periods after the purchase/sale of assets and in the launch phase of investment projects, Rosneft has been consistently generating a positive free cash flow (FCF) over the years. In 2018, being in the middle of the investment cycle accompanied by a significant increase in capex due to the construction and launch of new projects, the Company scaled up its free cash flow at a record pace, managing to overcome the negative impact of changes in working capital occurred in 2016 and 2017.