Rosneft Reports 66% Fall in Profit in Q3

November 26, 2009

Rosneft said Wednesday that third-quarter profit fell 66 percent after crude prices declined from a record high.

Net income dropped to $1.17 billion from $3.47 billion a year earlier, the company said.

That missed the $1.43 billion median estimate of eight analysts surveyed by Bloomberg. Revenue fell 37 percent to $13 billion. The price of Urals crude averaged $67.94 a barrel in northwest Europe in the third quarter, 40 percent less than in the same period last year.

“The launch of the Vankor field in September 2009 resulted in Rosneft’s crude output growing 4 percent year on year in the third quarter,” Lev Snykov, an oil analyst at VTB Capital, said in a note to investors before the results were released. “This helped offset a 40 percent year-on-year decline in international crude prices.”

Rosneft’s earnings before interest, taxes, depreciation and amortization fell 31 percent against the previous year to $3.66 billion. Net debt was $18.9 billion as of Sept. 30, a decrease of $2.4 billion from the end of last year, Rosneft said in the statement.

Rosneft produced 2.21 million barrels a day of oil in the third quarter or 4.1 percent more than the second quarter, the statement said.

Rosneft expects to meet its year-end production target of 112 million tons, or 2.25 million barrels a day, the company said in a Nov. 23 statement on its web site. Its Vankor field will produce 220,000 barrels a day on average by the end of the year, Rosneft said.

Copyright 2009. The Moscow Times. All rights reserved.