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Rosneft reported 79 % fall in 2020 net income as pandemic hits oil demand

The company reduced its financial debt by $9.7 billion in 2020.

Rosneft reported 79 % fall in 2020 net income as pandemic hits oil demand

Moscow, February 12 - Neftegaz.RU. After a rough  year in which oil prices have slumped amid the coronavirus pandemic, Rosneft announced a sharp decline in net profit in 2020, which fell by 79.1% to RUB 147 billion ($2.2 billion) from 705 billion in 2019.

Over the past year, revenue decreased by 33.6% to RUB 5.75 billion, while EBIDTA melted by 42.6% to RUB 1.209 billion.
Despite the challenging times for the energy industry worldwide, the Head of Rosneft announced that the company will be able to pay dividends for 2020.
By the way, in the Q4 of 2020, the company received a record net profit of RUB 324 billion ($4.3 billion) compared to RUB 64 billion net loss in the Q3 of 2020

Rosneft’s CEO Igor Sechin said:
  • The pandemic of coronavirus led to an unprecedented drop in oil demand. The volatility of oil prices was at a critical level. At the same time, Rosneft fulfilled its obligations to balance market demand and supply
  • Despite the difficulties in 2020 the company generated net profit which sets a base for the dividends in accordance with the dividend policy
Last year Russian announced the start of operations for its giant Arctic oil project Vostok Oil, located on the Taimyr Peninsula.
The aim is to create a prolific oil-producing region which will ensure the production, transportation and transhipment of up to 50 million tonnes of oil a year at the initial stage.

It will take over 400,000 people to develop the Vostok Oil fields, including 130,000 Rosneft personnel and contractors.
15 new towns will be built to accommodate workers who will stay there in shifts.
The whole project is valued at between $70 and $100 billion.

Commenting on the company´s priority project I.Sechin noted:
  • In 2020 we reshaped and upgraded our upstream portfolio
  • A key step in this transformation at the end of 2020 was the formation of the Vostok Oil shareholding structure with the entry of one of the largest global trading companies
  • Vostok Oil is undoubtedly the world's largest new hydrocarbon project.
  • In the coming years, the necessary infrastructure will be created for the organization of production and supply in 2024. The output will reach 100 million tonnes early next decade
To read the full story in Russian.

Source : Neftegaz.RU


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