Rosneft second-quarter profit leaps on higher oil prices

Update Rosneft second-quarter profit leaps on higher oil prices
Rosneft includes oil major BP among its shareholders. (Reuters)
Short Url
Updated 13 August 2021

Rosneft second-quarter profit leaps on higher oil prices

Rosneft second-quarter profit leaps on higher oil prices
  • Net profit showed a fivefold increase from the same period last year

MOSCOW: Russian oil producer Rosneft’s second-quarter net profit showed a fivefold increase from the same period last year, it said on Friday, citing recovering oil prices.
Net profit surged to 233 billion roubles ($3.2 billion) while revenue doubled to 2.167 trillion roubles.

Rosneft, which includes oil major BP among its shareholders, said that liquid hydrocarbon production was at an average of 3.9 million barrels per day (bpd) in the quarter, down from 4.04 million bpd a year earlier, when OPEC+ launched its deepest oil supply cuts to prop-up global prices hit by the coronavirus pandemic.

Revenue increased 25 percent quarter on quarter to 2,167 billion billion. The company’s total hydrocarbon output increased 5.6% from the first quarter to 452.6 million barrels of oil equivalent.

The results slightly exceeded analysts’ expectations but overall came as no surprise to the market. Analysts polled by Bloomberg estimated revenue 2,089 billion roubles and net income of 224.7 billion roubles.

“We expect management to comment on its capex guidance for 2021 and provide more details on its enormous Vostok Oil project, which includes several fields on Russia’s Taymyr Peninsula and in the north of Krasnoyarsk Krai”, analysts of Moscow-based Sinara Financial Group said in a note published August 12 before the conference call for analysts later today.