Marketing
Annual report JSOC Bashneft 2013
70
Marketing
Annual report JSOC Bashneft 2013
71
ABOUT
THE COMPANY
OPERATING RESULTS
APPENDICES
CORPORATE GOVERNANCE
INFORMATION FOR
SHAREHOLDERS AND INVESTORS
Sales of petroleum products
and petrochemicals
We supply petroleum products and petrochemicals through the following
channels:
1. Domestic sales:
· retail sales through a network of filling stations;
· wholesale (including small wholesale).
2. Export sales:
· countries outside the Customs Union;
· Customs Union countries.
Sales volumes are distributed to maximise economic benefit and are large-
ly driven by macroeconomic conditions within any given period.
Distribution of petroleum product sales, million
tonnes
2011 2012 2013
Domestic sales
10.2 10.7 10.4
through the network of filling
stations
1.0 1.36 1.4
wholesale (including small
wholesale)
9.1 9.3 9.0
Export sales, of which:
9.2 8.6 9.4
Countries outside of the Cus-
toms Union
7 6.1 8.7
Members of the Customs Union 2.2 2.5 0.7
Domestic sales of petroleum products and
petrochemicals
In 2013, over 53% of our total products (10.4 million tonnes) was sold
on the domestic market.
The main products sold by Bashneft include high-octane petrol (38%) and
diesel fuel (24%).
Rail freight accounts for almost all fuel oil and petrol supplies in the domes-
tic market, as well as three-quarters of diesel fuel supplies.
Fuel produced by Basheft regularly wins awards in Russian competitions.
In 2013, Ufaneftekhim won a nationwide competition in the “100 Top Russian
Goods” programme. Super Euro-98 petrol and lubricating oil for aircraft tur-
bine engines produced by Novoil were awarded diplomas by the All-Russian
Quality Organisation.
Breakdown of domestic sales, million tonnes
2011 2012 2013 Share
in 2013
High-octane petrol
3.8 4.0 4.0 38.3%
Diesel fuel
2.2 2.5 2.5 23.7%
Fuel oil
1.7 1.9 1.5 14.2%
Petrochemicals
0.4 0.3 0.3
2.7%
Low-octane petrol
0.3 0.2 0.1
1.1%
Naphtha
0.0 0.0 0.0
0.3%
Other
1.7 1.8 2.1 19.7%
Total
10.2 10.7 10.4 100%
Oil product shipments in 2013
0%
20%
40%
60%
80%
100%
Fuel oil
Diesel
Petrol
Pipeline
Rail
1%
25%
2%
99%
75%
98%
Retail sales
Improvement of direct access to end customers and geo-
graphic diversification of sales are our strategic goals for
petroleum products and petrochemicals marketing to the do-
mestic market.
In pursuing this goal, we are constantly looking for ways
to expand our economically viable retail network, as well
as implementing a large-scale programme of filling stations
rebranding.
In 2013, high-margin retail sales of petroleum products came
to 1.40 million tonnes accounting for 13.5% of total domestic
sales. Retail sales volume has increased by 125% over the
last three years.
In October 2013, filling stations in Bashkortostan and Udmur-
tia started selling AI-92 ATUM petroleum, which meets Euro-
5 standards. In 2014, sales will start at filling stations in the
Orenburg and Sverdlovsk regions.
ATUM petroleum has been developed in collaboration with
BASF and is a next-generation fuel that thoroughly cleans
car engines from accumulated sediments and maintains the
cleanliness of the fuel system. This results in optimal engine
operation in accordance with its initial settings, rated capacity
and maximum service life; fuel consumption and emissions
into the atmosphere are reduced. The fuel is environmentally
cleaner, producing exhaust fumes that contain less sulphur,
benzene, aromatic hydrocarbons and other substances. Fur-
thermore, ATUM provides increased resistance to low tem-
peratures and a high degree of protection against corrosion
for key engine mounts.
For more information on ATUM fuel, see the Refining section.
Number of petrol stations
485
473
485
225
259
279
0
100
200
300
400
500
600
700
764
732
710
2011
2012
2013
Owned and leased petrol stations
15
Partner petrol stations
I am pleased that the petrol station rebranding programme is going well, and
is contributing to growth in our retail sales. The launch of ATUMfuel was an in-
disputable success story, which has been very well received by consumers.
Dmitry Panyukov
Member of the Management Board,
Vice President, Regional sales
”
15. Number of petrol stations on the Company’s balance sheet as of the
end of the year.
Since 2012, Bashneft sells petrol and
diesel fuel of only Euro-5 standard
through its own retail network.
