Rosneft 9M Profits Down Year on Year

Russian state-run oil giant Rosneft reported net 3Q2017 profit of rubles 47bn ($791mn).

That was 27% less than in 2Q2017. Net profit for 9M2017 was rubles 122bn, down 4% year on year, Rosneft reported November 14.

Pre-tax earnings (Ebitda) in 3Q2017 increased by 21.2% to rubles 371bn ($6.3bn), while for the 9M period it was 10.6% higher at rubles 1.01 trillion (28% higher in US dollar terms) despite higher excise taxes and pipeline tariffs.

In 9M2017 capital expenditures reached rubles 630bn ($10.6bn), rising 32.6% year on year, due to spending on key upstream projects - Tagul, Rospan, Taas-Yuryah and Russkoe – and acquisition of strategic assets which included a stake in Zohr, the Egyptian supergiant gas field completed October 2017. In December 2016, Rosneft agreed to pay Eni $1.125bn for the 30% Zohr stake, plus the pro quota reimbursement of past expenditures of about $450mn.

On November 13 this week, Rosneft reported its total production was up 8.8% year on year in 3Q2017 at 5.674mn barrels of oil equivalent per day (boe/d).

Mark Smedley