• 5 minutes Drone attacks cause fire at two Saudi Aramco facilities, blaze now under control
  • 8 minutes China Faces Economic Collapse
  • 12 minutes Oil Production Growth In U.S. Grinds To A Halt
  • 14 minutes Iran in the world market
  • 17 minutes Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 1 min Experts review drone damage . Say Saudis need to do a lot of explaining.
  • 7 hours USA Wants Iran War -- Shooty Shooty More
  • 12 hours Collateral Damage: Saudi Disruption Leaves Canada's Biggest Refinery Vulnerable
  • 12 hours Yawn... Parliament Poised to Force Brexit Delay Until Jan. 31
  • 28 mins Saudis Confirm a Cruise Missile from Iranian Origin
  • 8 hours The Spy Money: U.S. Wants To Seize All Money Edward Snowden Makes From New Book
  • 49 mins Aramco Production
  • 14 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 5 hours Trump Will Win In 2020 And Beyond..?
  • 24 hours USA : Attack came from 'Iranian soil'. Pompeo to release 'evidence'.
  • 6 hours The Belt & Road Initiative: A Wolf in Sheep's Clothing?
Big Oil Is Down, But Not Out

Big Oil Is Down, But Not Out

Activist divestment and climate change…

Rosneft Sees Net Profit Jump Sevenfold On Higher Oil Prices

Rosneft storage

Russia’s largest oil producer, state-controlled Rosneft, reported on Monday a sevenfold jump in its net profit for Q1 2018, on the back of significantly higher oil prices compared to the same period of 2017.

Rosneft’s net income soared to US$1.3 billion (81 billion Russian rubles), more than seven times higher compared to Q1 2017, and exceeding a Reuters forecast of US$1.25 billion (76.8 billion rubles).

Revenues at Rosneft jumped by 22.1 percent on the year, to US$28 billion (1.722 trillion rubles), driven by higher oil prices and sales channel optimizations despite a 1.2-percent decline in average daily liquids production that was constrained by Russia’s commitment in the OPEC/non-OPEC production cut pact, Rosneft said.

The average price of the Urals crude grade was US$65.20 in the first quarter this year, up from US$60.50 in Q4 2017, and up from the Q1 2017 average price of US$52.30, Rosneft’s financials show.

Spare capacity at the company exceeded 100,000 bpd at the end of the first quarter this year.

Free cash flow in rubles jumped threefold compared to Q4 2017 and increased by 40.6 percent from Q1 2017.

Related: OPEC Lifts Oil Demand Forecast Amid Rising Prices

On the conference call, Rosneft’s First Vice President for Economics and Finance, Pavel Fyodorov, said that the company would reveal details of its planned share buyback in June this year.

Earlier this month, Rosneft said that its management was proposing a share buyback program of US$2 billion in the period 2018 to 2020, as part of its strategy to boost shareholder returns. Rosneft plans to finance the medium-term buy-back plan with organic free cash flow generation and divestments of non-core assets, the company said, adding that the execution of the share repurchase program would start in the second quarter this year, pending receipt of customary corporate approvals.

As part of the plan to boost shareholder returns, Rosneft also plans to carry out a strategic review of its asset portfolio focused on decreasing the share of tail and non-core assets, “the disposal of which should provide incremental net cash flow to the shareholders.”

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play