Rosneft reported Q2 net income of 194 billion RUB

Moscow, August 21 - Neftegaz.RU. 1H 2019 Rosneft´s net income jumped by 9% YoY to RUB 325 billion, including by 1.5 times QoQ to RUB 194 billion. EBITDA increased by 12% YoY to RUB 1,063 billion, was mainly driven by a positive crude oil price dynamics in RUB terms, with a margin improvement to 25%.

2Q 2019 revenues amounted to RUB 2,135 billion ($33.6 billion). The increase in sales by 2.8% QoQ was driven by higher crude oil prices (+4.8% in RUB terms and +7.4% in USD terms). Limitation of crude oil intake by the Transneft pipeline system restricted the revenues growth in 2Q 2019 due to pollution in Druzhba pipeline.

2Q 2019 capital expenditures amounted to RUB 222 billion ($3.5 billion). The growth of 3.7% vs 1Q 2019 was driven by the active development of Russian and international projects.

1H 2019 capital expenditures amounted to RUB 436 billion, a reduction of 3.5% YoY, due to optimization of the development drilling program in the context of the strategic initiative to increase the share of horizontal wells of higher efficiency at the company’s brownfields not less than 40%.

The company is reviewing options for aligning the capital investment profile of its large projects with the extension of quotas under the OPEC+ production cut agreement.

Commenting on 2Q 2019 results Rosneft’s CEO Igor Sechin said: “Despite the unstable macroeconomic environment and external limitations, the company reduced its financial debt and trade prepayments by more than RUB 800 billion since the beginning of 2019. The optimization of the debt portfolio structure continued with a share of long-term debt growing to 80% and the short-term debt decreasing by 25% since the beginning of the year.”