In the 1st half of 2021, Rosneft benefited from a strong increase in global oil prices.
The average Urals oil price was almost 60% higher compared with the 1st half of 2020 at $63 per barrel.
In the 2nd quarter, Rosneft achieved one of the highest net income levels in its history which reached RUB 233 billion ($3.1 billion).
In the 1st half of this year the company reported net profits of $5.1 billion, compared with a $1.3 billion loss in the same period of 2020.
Rosneft’s CEO Igor Sechin said:- Despite all the challenges stemming from the COVID-19 pandemic, we managed to ensure continuity of our business and demonstrated strong financial and operating results
- Thanks to the improvement in the macroeconomic environment in 2Q 2021, the company’s net profit level was among the highest in its history, while the EBITDA and Free cash flow more than doubled in the 1st half of 2021
- In the 2nd quarter, 2 production lines were launched at the Rospan gas project, which supported a significant increase in production
- As part of implementation of the flagship Vostok Oil project in the Krasnoyarsk territory, Rosneft launched construction of the main infrastructure facilities
- In July, Rosneft completed the dividend payment of RUB 73.5 billion (about $1 billion)) for 2020 ahead of schedule
Free cash flow amounted to RUB 505 billion ($6.9 billion) in 1H 2021, a 2.5-fold increase y-o-y.
Since the beginning of the year, total financial debt decreased by 6%, the 3rd consecutive quarter of debt reduction.Capex amounted to RUB 462 billion ($6.2 billion) in 1H 2021 which is 25.9% higher compared to 1H 2020.
The growth was mainly a result of management efforts aimed at implementation of the Vostok Oil project and the increase in drilling volumes at Yuganskneftegaz.
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Author: Elena Alifirova
