• 5 minutes Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 11 minutes Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
  • 15 minutes WTI @ 67.50, charts show $62.50 next
  • 14 hours The EU Loses The Principles On Which It Was Built
  • 6 hours Starvation, horror in Venezuela
  • 9 hours Why hydrogen economics does not work
  • 6 hours Again Google: Brazil May Probe Google Over Its Cell Phone System
  • 6 hours Tesla Faces 3 Lawsuits Over “Funding Secured” Tweet
  • 2 hours Mike Shellman's musings on "Cartoon of the Week"
  • 19 hours WSJ *still* refuses to acknowledge U.S. Shale Oil industry's horrible economics and debts
  • 1 day Chinese EV Startup Nio Files for $1.8 billion IPO
  • 7 hours Saudi Fund Wants to Take Tesla Private?
  • 23 hours Crude Price going to $62.50
  • 1 hour California Solar Mandate Based on False Facts
  • 2 hours Oil prices---Tug of War: Sanctions vs. Trade War
  • 18 hours Saudi Arabia Cuts Diplomatic Ties with Canada
Oil Prices Jump As Saudis Cap Oil Supply

Oil Prices Jump As Saudis Cap Oil Supply

Oil prices rose on Tuesday…

Shockwave In Shipping Could Send Brent Soaring

Shockwave In Shipping Could Send Brent Soaring

New IMO regulations for the…

Rosneft’s H1 Profit Falls 12.5%

Rosneft

Rosneft reported a net profit attributable to shareholders of US$1.4 billion for the first half of 2017, down by 12.5 percent from the result for January-June 2016 because of the strengthening of the Russian currency thanks to higher oil prices.

These higher prices drove revenues higher, to US$50.1 billion, up by almost 50 percent on the year, Rosneft said. EBITDA were also up, to US$11 billion, or 2.9 percent higher than in first-half 2016.

Like other oil majors, Russia’s state-owned giant benefited from higher international oil prices and more sales in the reporting period.

Capex also increased in the period, by 32 percent, driving free cash flow lower, Rosneft said, which at end-June 2017 stood at US$2.1 billion. Like other Russian oil companies, Rosneft is taking advantage of tax incentives aimed at stimulating new field exploration in eastern Siberia, to replace depleting fields in the Western part of Russia’s oil fatherland.

Rosneft made headlines earlier this year when reports emerged about a possible debt default by Venezuela’s PDVSA. Rosneft could take control of 49.9 percent of Citgo – the troubled U.S. business of Venezuela’s state-owned oil company, media warned in March.

PDVSA used the stake as collateral for a $1.5-billion loan provided by Rosneft last year, and the Russian company immediately filed a lien with the Delaware Department of State asserting its right to ownership in case PDVSA defaults on debt payments.

Earlier this week, Reuters reported that PDVSA has started diverting crude oil deliveries from Citgo to Rosneft as it has been falling seriously behind on its in-kind payments for the loan. Venezuela has been finding it hard to maintain sufficient crude oil production since 2012, but, Reuters notes, the decline in production accelerated this year amid lower crude oil prices, chronic lack of investments, and payment delays.

By Irina Slav 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