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    Rosneft Sees Profits Surge in Q2


Impairments in the first quarter, higher operating income and lower financial expenses were behind the improved performance, offsetting a dip in production.

by: Joseph Murphy

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Natural Gas & LNG News, Europe, Premium, Corporate, Financials, News By Country, Russia

Rosneft Sees Profits Surge in Q2

Russian state oil and gas producer Rosneft boosted net profits by 48.1% quarter on quarter in the three months ending June 30, to rubles 194bn ($2.9bn), the company reported on August 21. Compared with the second quarter of last year, income was down 14.9%.

Rosneft cited the rubles 80bn in downstream asset impairments it suffered in the first quarter as the main factor behind its improved performance. Higher operating income and a cut in financial expenses also played a role.

Revenues climbed 2.8% quarter on quarter and 1.1% yr/yr, arriving at rubles 2.135 trillion, although Ebitda weakened 6% compared with Q1 and 8.8% yr/yr to rubles 515bn. The company published its operational results on August 20, recording a 3.3% quarter-on-quarter decline in hydrocarbon output to 5.71mn boe/day as a result of Opec+ restrictions and Russia’s Druzhba dirty oil crisis. Production was virtually unchanged yr/yr.

Rosneft – known for its large debt burden – has reduced its financial debt and trading liabilities by more than rubles 800mn, or 14%, since the start of the year, while its net debt and trading liabilities have decreased by rubles 157bn. The company also reported a 3.5% yr/yr drop in capital expenditure in the first half to rubles 436bn, which it attributed to optimised development drilling.