Rosneft Reports 16.1% Increase in Net Income Despite Decrease in Revenue

Russia’s Rosneft reported a 16.1% increase in net income in the first nine months of the year with respect to the same period in 2014, despite a 7.8% decrease in revenue.

“Despite of challenging economic environment, the company keeps improving its efficiency. This is demonstrated by keeping operating costs in rouble terms at sustainable level in conditions of 12.0% increase in industry prices” Igor Sechin, Chairman of Rosneft Management Board, said on Wednesday. 

Just in the third quarter, Rosneft said that revenue amounted to RUB 1,266 bln (USD 20.6 bln), declining by 3.5% compared to Q2 2015 due to lower crude oil prices in RUB terms by 4.4%.

At the same time, Rosneft’s gross debt decreased by 21.5% since the beginning of the year in USD terms.

Also on Wednesday, Rosneft said that its subsidiary Itera Oil and Gas signed long-term contracts on natural gas supply with two industrial companies based in Sverdlovsk Region part of the EVRAZ Group. 

‘The signed agreements provide for supplies of natural gas in a volume around 14 bcm of gas to the companies of EVRAZ Group, effective from January 1st, 2016 for 10 years’ Rosneft wrote on its website.  

“The company’s resource base enables us to increase gas production steadily. New agreements with EVRAZ guarantee long-term monetization of crude materials produced by Rosneft subsidiaries” Sechin commented.