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Rosneft almost triples net profit despite downstream impairments

Reuters  |  MOSCOW 

By Vladimir Soldatkin

(Reuters) - Russia's largest producer almost tripled third-quarter net profit to 142 billion roubles ($2.15 billion), citing higher crude output and prices, despite taking a heavy hit on downstream operations.

The company took a 133 billion rouble ($2 billion) impairment in refining and distribution, with domestic fuel prices lagging behind surging crude prices. Russian companies have also been forced by the authorities to cap politically

Despite the big profit jump from the same period last year, Ronseft fell just short of expectations. The consensus forecast among analysts polled by was for the Kremlin-controlled company to post net income of 147 billion roubles.

Rosneft, with and among its shareholders, accounts for about 40 percent of Russia's total and is key to Moscow's efforts to forge closer ties with the Organization of the Petroleum Exporting Countries (OPEC).

The company lifted in the third quarter by 3.4 percent year on year.

DEBTS

Headed by Igor Sechin, a long-standing ally of Vladimir Putin, has been pursuing acquisitions at home and abroad, amassing huge debt.

In May it announced a plan to cut debt and trading liabilities by a minimum of 500 billion roubles this year, partly by selling non-core assets.

The company did not disclose its net debt in the latest report, but analysts at brokerage BCS put the figure at $71.7 billion, down about 8 percent from the previous quarter.

After the introduction of sanctions that shut down Western capital markets for the company, switched to prepayment deals with international traders such as Trafigura.

The company said it was owed $3.1 billion by as of Sept. 30, down from $3.6 billion on June 30. It also said it owed $26.8 billion to traders under prepayment deals for its oil as of Sept. 30, down from $29.3 billion at June 30.

($1 = 65.9829 roubles)

(Reporting by Vladimir Soldatkin; Additional reporting by Olesya Astakhova and Oksana Kobzeva; Editing by David Goodman)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, November 06 2018. 19:47 IST
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