Rosneft Reports 104.1% Increase in Gas Sales in 1H14

Rosneft released it 2Q14 results, reporting a year-on-year 33.2% increase in gas sales in the second quarter. At the same time, considering the first two quarters of the year, gas sales increased by a more staggering 104.1%. On the other hand, the company’s performance in the oil and petroleum products breakdown was not as positive. 

’In 1H14, the company continued to demonstrate strong financial results due to stable hydrocarbon production levels, successful development of new projects, capital discipline and control of operational expenses. Hydrocarbon production amounted to 5 million barrels of oil equivalent per day which is 4.6% higher than in 1H13,’ reads the note released on Friday.

The first quarter EBITDA increased by 41.4% to 304, from 205 in the first quarter of 2013. Its strategy for the future hinges on increased levels of associated gas utilisation and on the startup of primary processing at the Archinsk oil refinery. Cooperation with other companies, like BP, remains central.  

“Rosneft has been intensifying its effort in developing promising projects on the Russian offshore. President of Russia Vladimir Putin participated in the inauguration ceremony of commissioning of the unique Berkut platform, which will add up to 4.5 million tons of oil to the annual production of the Sakhalin-1 project. We continued successful preparation for drilling the first well in the Kara Sea: worked to modify the West Alpha drilling rig, import the equipment and materials, arrange the onshore support base and transport the drilling rig to the drilling site. The company’s operational cash flow is synchronized with the current project execution,” Igor Sechin, President of Rosneft, commented.  

Earlier this month, the company signed agreements with companies from Mozambique, Japan and Russia during the 21st World Petroleum Congress in Moscow.