Russia’s Rosneft more than triples second quarter net profit

MOSCOW: Russia’s largest oil producer Rosneft said on Tuesday its second-quarter net profit more than tripled to 228 billion roubles ($3.6 billion) on higher production and prices, pushing its shares to an all-time peak.
Rosneft, in which Qatar is set to become the third-largest shareholder after the Russian state and BP, said its profit was also supported by a one-off gain from a share acquisition in an upstream joint venture and the revaluation of a stake in another joint venture.
Rosneft, headed by Igor Sechin, a close ally of Russian President Vladimir Putin, said its revenue in the second quarter was 2.07 trillion roubles, up 48 per cent year-on-year.
Earnings before interest, tax, depreciation and amortisation (EBITDA) were 565 billion roubles, up 85 per cent.
“The second quarter was mainly a reflection of the management’s efforts to improve the efficiency of the company,” Sechin said in a statement.
Under Sechin, who took over the company in 2012, Rosneft has made huge acquisitions in Russia and abroad, including the $55 billion takeover of local peer TNK-BP in 2013.
That deal made Rosneft the world’s biggest listed oil firm by output.
“The key strategic acquisitions made in the period of low oil prices have been completed.
The company focuses on organic growth and monetisation of synergies from the acquisitions,” Sechin said. — Reuters