By August 15, 2016 Read More →

Rosneft quarterly profit falls by a third


In a statement, Rosneft said investments are expected to increase in the second half of 2016. Reuters photo by Maxim Shemetov.

Rosneft one of the most indebted Russian companies

MOSCOW, Aug 15 (Reuters) – Rosneft, Russia’s largest oil producer, said on Monday its second-quarter net profit fell almost 34 percent to 89 billion roubles ($1.38 billion) following a drop in global oil prices.

Rosneft, almost 20 percent owned by BP, is in the spotlight because it is bidding for Bashneft, its smaller peer as the Russian government aims to sell a stake of a 50 percent this year.

Analysts were expecting state-controlled Rosneft to post net income of 85 billion roubles in the second quarter, down from 134 billion roubles the same period a year ago..

The price of Urals oil blend, Russia’s chief commodity exports, fell by 30 percent in the second quarter, year-on-year, due mainly to oversupply and it averaged $46 per barrel.

Rosneft said its April-June revenue declined by 6 percent to 1.232 trillion roubles ($19.22 billion).

Its earnings before interest, taxation, depreciation and amortisation, a gauge of operating profit known as EBITDA, increased by 12 percent to 348 billion roubles.

Rosneft became the world’s top listed oil firm by output after it bought its local competitor TNK-BP for $55 billion in 2013. The deal also turned it into one of the most indebted Russian companies, with only Gazprom ahead.

Rosneft said on Monday that its net debt was at $23.4 billion, down from $39.9 billion in the second quarter of last year, on the back of cash flow. Rosneft free cash flow was at $1.3 billion in the second quarter of this year.

Capital expenditures totalled 154 billion roubles in the second quarter of this year.

“Investments are expected to increase in second half of 2016 due to seasonal factors. The growth in spending is expected at above 30 percent this year”, Rosneft said in statement. In 2015 capex stood at 595 billion roubles.

Shares in Rosneft rose 2.5 percent by 1455 GMT, over performing a 0.7 percent rise in the broader Moscow stock market.

(Reporting by Olesya Astakhova; Writing by Denis Pinchuk; Editing by Katya Golubkova and Keith Weir)

Ph: 432-978-5096 Website:

Ph: 432-978-5096 Website:

Posted in: News

Comments are closed.