Russian oil giant records positive net profits in 2018

Russian oil giant records positive net profits in 2018

/ Financial News / Tuesday, 05 February 2019 12:13

The Russian oil giant Rosneft has announced that its net profit in 2018 has more than doubled, taking advantage, like the entire sector, of rising hydrocarbon prices despite high market volatility.

In 2018, the majority-public group posted a net profit of 549 billion rubles, about 7.3 billion euros at the current exchange rate, 2.5 times the result of the previous year.

Regarding the company’s turnover, it jumped 37% to 8.238 billion rubles, or 110 billion euros.

The results were supported by a rise in oil prices as well as an increase in production enabled by the easing of OPEC countries and their partners (including Russia) in controlling supply.

Rosneft's total hydrocarbon production increased by 1.3% to 5.8 million barrels of oil equivalent per day on average.

In a statement, president of Rosneft Igor Sechin welcomed these results “against a backdrop of high volatility in oil prices, changes in taxation, the regulation of petroleum product prices on the domestic market and the consequences of restrictions imposed by the OPEC + agreement” (producing countries).

Thanks to a significant cash flow at the end of the year, the group was able to reduce its debts by more than 14 billion dollars (12.3 billion euros), said Mr. Sechin.

The group’s president also said that investments of 1,200-1,300 billion rubles (16 to 17.4 billion euros) would take place in 2019, while the group reaches “the active phase of implementation of strategic oil projects and gas”.

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