The corporate policy priorities in the financial management ensure financing of production, investment and social activities of the Company and efficient use of financial resources.
All the obligations to pay for works and services, for products delivered, payment of taxes and payments to non-budgetary funds were performed by PJSC TATNEFT in full and in a timely manner. The work was continued on the application of the declarative (accelerated) procedure for VAT refunds. Reducing the time for VAT refund from the budget by an average of 90 days allowed involving RUB 2.4 billion into the Company's turnover.
In 2017, PJSC TATNEFT continued the work on improving the financial management procedures of the enterprises, which are part of the PJSC TATNEFT’s centralized treasury contour, while the project “Building a single treasury platform for TATNEFT Group” implemented in 2016 was recognized as the best industry solution based on the "1C" complex software.
2017 witnessed launching of the project “Centralization of financial functions of the PJSC TATNEFT’s structural units as part of the General Service Center” in order to improve the efficiency, quality, accountability and stability servicing business functions in the area of PJSC TATNEFT financial management.
The work was continued in 2017 to reduce the bank guarantee commissions both for PJSC TATNEFT and for Subsidiaries and Affiliates of the TATNEFT Group Treasury. Using changes in legislation, bank guarantees were partially replaced by corporate guarantees, which allowed reducing time and material costs.
In the conditions of an unstable banking system, reducing the number of reliable banks, in addition to placing in classical bank deposits, new forms of the funds depositing were used and applied: corporate bonds, currency REPOs and deposits on the Moscow Exchange. Revenues in the amount of more than RUB 7.1 billion were received for all placement operations in 2017.
The last tranche in the amount of USD 16.4 million was allowed complete repayment of USD loans in 2017. The loan in the amount of RUB 22 billion was raised.
In 2017, the Company conducted a number of currency risk hedging transactions using currency forwarding. Closing of deals brought in an income in the amount of RUB 67 million, which compensated for the decline in the dollar exchange rate in a given period, which confirmed the correctness of the identified currency risk and the instrument for its leveling.
In order to efficiently use cash, the finance department carried out a large amount of work on optimizing settlements with counterparties. This work will be also carried out in future. To reduce the diversion of the Company's working capital and speed up settlements with regular counterparties, reciprocal obligation are repaid through the Central Inventory Trade Center (Mutual Claims Settlement Center). The turnover of the Mutual Claims Settlement Center for 2017 amounted to RUB 29.0 billion, which was RUB 3.7 billion more than in 2016.
