Liquidity and capital resources

Cash flows (RUB mn)
2015 2016 ∆, %
Net cash provided by operating activities 285,175 321,297 12.7
Net cash used in investing activities (314,511) (323,854) 3
Net cash (used in) / provided by financing activities 82,193 (68,430)
(Decrease) / Increase in cash and cash equivalents 52,857 (70,987)
Net cash provided by operating activities (RUB mn)
2015 2016 ∆, %
Net cash provided by operating activities before changes in working capital. income tax. interest and dividends 312,169 361,567 15.8
Net changes in working capital 18,342 15,216 (17)
Income tax paid (19,522) (22,158) 13.5
Interest paid (28,229) (36,476) 29.2
Dividends received 2,415 3,148 30.4
Net cash provided by operating activities 285,175 321,297 12.7
Net cash used in investing activities (RUB mn)
2015 2016 ∆, %
Capital expenditures (349,036) (384,817) 10.3
Acquisition of subsidiaries, shares in joint operations and equity affiliates 197 (2,028)
Net changes in deposits 45,745 48,517 6.1
Net changes in loans issued and other investments (22,603) (2,104) (90.7)
Other transactions 11,186 16,578 48.2
Net cash used in investing activities (314,511) (323,854) 3
Net cash used in financing activities (RUB mn)
2015 2016 ∆ %
Net changes in debt 121,565 (63,929)
Payment of dividends to shareholders (36,346) (2,598) (92.9)
Other transactions (3,026) (1,903) (37.1)
Net cash (used in) / provided by financing activities 82,193 (68,430)
Capital expenditures (RUB mn)
2015 2016 ∆, %
Exploration and production 255,235 245,256 (3.9)
Consolidated subsidiaries 239,199 228,084 (4.6)
Joint operations 16,036 17,172 7.1
Refining 31,552 50,095 58.8
Marketing and distribution 13,547 9,728 (28.2)
Others 13,317 14,724 10.6
Subtotal capital expenditures 313,651 319,803 2
Change in advances issued and material used in capital expenditures, including 35,385 65,014 83.7
Total capital expenditures 349,036 384,817 10.3

Capital expenditures for refining increased by 58.8% YOY due to second stage of modernisation programm at Omsk and Moscow refinery

Debt and liquidity (RUB mn )
December 31, 2015 December 31, 2016
Short-term loans and borrowings 147,319 80,187
Long-term loans and borrowings 670,779 596,221
Cash and cash equivalents (114,198) (33,621)
Short-term deposits (49,206) (886)
Net debt 654,694 641,901
Short-term debt / total debt, % 18 11.9
Net debt and financial lease liabilities/ EBITDA for 12 months preceding 1.9 1.6

As at December 31, 2016, average debt maturity increased to 3.60 years from 3.33 years as at December 31, 2015.

The average interest rate increased from 4.31% as at December 31, 2015 to 5.52% as at December 31, 2016 mainly due to the increased share of loans denominated in rouble in debt portfolio.