Rosneft 1H Buoyed by Oil Price

Russian state-run oil giant Rosneft, in financial results August 7, said 1H 2018 net income attributable to shareholders was rubles 309bn ($5.1bn), four times higher than its rubles 75bn profit in 1H2017.

In 2Q2018 its net income was rubles 228bn ($3.6bn). Much stronger oil prices year on year were a clear driver, although CEO Igor Sechin claimed some credit for efficiency improvements.

It said its net debt to earnings ratio was down by 26% since the beginning of 2018 to a factor of 1.5 – but, as in the past, gave no actual figure for its net debt. It vowed to reduce debt on May 1 under pressure from the Russian government, possibly concerned at the possible impact of sanctions on its state-controlled giants.

Its basic 2Q statement made no reference to grow its gas business, despite this being as a main plank of its strategy outlined end-2017 which also outlined a hoped-for gas marketing role for Rosneft's major 19.75% shareholder BP. However there's been no sign from the Kremlin that it wants to end Gazprom's monopoly over pipeline gas sales to Europe, which is how Rosneft (with BP's help) hopes to expand.