By February 22, 2017 Read More →

Rosneft profits slip, other Russian oil and gas producers see gains

Rosneft

Rosneft if Russia’s biggest oil producer. ¬†Reuters photo by Sergei Karpukhin.

Rosneft reported $908 million net profit in 2016 Q4

By Olesya Astakhova

MOSCOW, Feb 22 (Reuters) – Rosneft, Russia’s biggest oil producer, made a net profit of 52 billion roubles ($908 million) in the final three months of last year, it reported on Wednesday, down from 53 billion roubles in the same period of 2015.

Last year the state-controlled company bought a controlling stake in smaller rival Bashneft and at the end of the year said a 19.5 per cent stake in Rosneft had been sold by the state to Qatar and oil trader Glencore.

Meanwhile, Gazprom Neft, the country’s third-largest oil producer, and gas producer Novatek both reported better results this week, boosted by new fields and higher oil prices.

Gazprom Neft, controlled by Russia’s top gas producer Gazprom, posted on Wednesday a fourth-quarter profit of 52.7 billion roubles ($918 million), having reported a loss of 21.2 billion roubles in the last three months of 2015.

The company, Russia’s fastest-growing oil producer, said its total output of hydrocarbons was up 8.2 per cent last year at 86.2 million tonnes of oil equivalent.

Novatek, the country’s second biggest gas producer, said on Tuesday its net profit last year rose by 1.3 billion roubles to 133.8 billion roubles, while free cashflow increased by 69.4 per cent to 139.4 billion roubles.

Last year both Rosneft and Gazprom Neft increased their output due to the start-up of new fields such as Messoyakha, Novy Port and Suzun, while Novatek increased production at the Yarudeyskoye oil field.

Oil output in Russia, one of the world’s largest producers, rose to its highest level in almost 30 years to 11.21 million barrels per day (b/d) at the end of 2016.

Output then dropped by 100,000 b/d in January due to a decline by all the major domestic producers following the OPEC-led accord to reduce global market supplies to support oil prices.

(Additional reporting by Denis Pinchuk; Editing by Katya Golubkova, Greg Mahlich)

Posted in: Energy Financial

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