• 1 day Iraq Begins To Rebuild Largest Refinery
  • 1 day Canadian Producers Struggle To Find Transport Oil Cargo
  • 1 day Venezuela’s PDVSA Makes $539M Interest Payments On Bonds
  • 1 day China's CNPC Considers Taking Over South Pars Gas Field
  • 2 days BP To Invest $200 Million In Solar
  • 2 days Tesla Opens New Showroom In NYC
  • 2 days Petrobras CEO Hints At New Partner In Oil-Rich Campos Basin
  • 2 days Venezuela Sells Oil Refinery Stake To Cuba
  • 2 days Tesla Is “Headed For A Brick Wall”
  • 2 days Norwegian Pension Fund Set to Divest From Oil Sands and Coal Ventures
  • 2 days IEA: “2018 Might Not Be Quite So Happy For OPEC Producers”
  • 2 days Goldman Bullish On Oil Markets
  • 2 days OPEC Member Nigeria To Issue Africa’s First Sovereign Green Bond
  • 3 days Nigeria To Spend $1B Of Oil Money Fighting Boko Haram
  • 3 days Syria Aims To Begin Offshore Gas Exploration In 2019
  • 3 days Australian Watchdog Blocks BP Fuel Station Acquisition
  • 3 days Colombia Boosts Oil & Gas Investment
  • 3 days Environmentalists Rev Up Anti-Keystone XL Angst Amongst Landowners
  • 3 days Venezuelan Default Swap Bonds At 19.25 Cents On The Dollar
  • 3 days Aramco On The Hunt For IPO Global Coordinators
  • 4 days ADNOC Distribution Jumps 16% At Market Debut In UAE
  • 4 days India Feels the Pinch As Oil Prices Rise
  • 4 days Aramco Announces $40 Billion Investment Program
  • 4 days Top Insurer Axa To Exit Oil Sands
  • 4 days API Reports Huge Crude Draw
  • 4 days Venezuela “Can’t Even Write A Check For $21.5M Dollars.”
  • 4 days EIA Lowers 2018 Oil Demand Growth Estimates By 40,000 Bpd
  • 5 days Trump Set To Open Atlantic Coast To Oil, Gas Drilling
  • 5 days Norway’s Oil And Gas Investment To Drop For Fourth Consecutive Year
  • 5 days Saudis Plan To Hike Gasoline Prices By 80% In January
  • 5 days Exxon To Start Reporting On Climate Change Effect
  • 5 days US Geological Survey To Reevaluate Bakken Oil Reserves
  • 5 days Brazil Cuts Local Content Requirements to Attract Oil Investors
  • 5 days Forties Pipeline Could Remain Shuttered For Weeks
  • 5 days Desjardins Ends Energy Loan Moratorium
  • 6 days ADNOC Distribution IPO Valuation Could Be Lesson For Aramco
  • 6 days Russia May Turn To Cryptocurrencies For Oil Trade
  • 6 days Iraq-Iran Oil Swap Deal To Run For 1 Year
  • 8 days Venezuelan Crude Exports To U.S. Fall To 15-year Lows
  • 8 days Mexico Blames Brazil For Failing Auction

Breaking News:

Iraq Begins To Rebuild Largest Refinery

The Oil And Gas Industry Is Under Attack

The Oil And Gas Industry Is Under Attack

The global oil and gas…

IEA Dashes Bullish Sentiment In Oil

IEA Dashes Bullish Sentiment In Oil

Inventories have been falling and…

Rosneft’s Q1 Profits Miss As Stronger Ruble Offsets Oil Price Gains

Rosneft

Russia’s biggest oil producer Rosneft reported on Friday a first-quarter net income rising 8.3 percent on the year, but missing analyst estimates, as the appreciation of the Russian ruble largely offset the impact of the higher oil prices in Q1 2017.

Rosneft’s net income attributable to shareholders grew to US$222.5 million (13 billion rubles) from US$205.4 million (12 billion rubles) for the first quarter last year. This past quarter’s net profit missed an average estimate of US$304.6 million (17.8 billion rubles) by six analysts surveyed by Bloomberg.

The Q1 profit saw a “significant negative effect of foreign exchange rates due to RUB appreciation,” Rosneft noted in its statement.

Revenues and EBITDA grew by 34.5 percent and 22 percent, respectively, over Q1 2016, but dropped by 5.1 percent and 8.8 percent sequentially, again due to the ruble appreciation. The annual growth in EBITDA was due to “improved macro conditions, increase in production, management efforts to control expenses and starting realization of synergy effect from the acquisition of new assets,” Rosneft said. The EBITDA of US$5.7 billion (333 billion rubles) beat the analyst estimate of US$5.27 billion (308 billion rubles).

Earlier this week, Rosneft said that its average daily liquids production decreased in Q1 2017 by a little more than 70,000 boed vs. October 2016 “due to external limitations for the Russian oil producers and unfavorable weather conditions,” with ‘external limitations’ referring to the OPEC/non-OPEC deal in which Russia pledged a total of 300,000 bpd production cut by the end of the first half of this year.

In today’s financials release, Rosneft’s chief executive Igor Sechin said:

“Environment remains difficult: continuing world commodity markets volatility, rouble appreciation – all of this impacted the Company’s financial results.”

Related: All Eyes On Saudi Arabia As OPEC Begins To Unravel

The deal with OPEC is good for Russia’s budget, but not so good for earnings of producers, Alexander Kornilov, an oil analyst at Aton, told Bloomberg in an email.

On Thursday, Russian Energy Minister Alexander Novak was quoted as saying that Moscow is inclined to extend the oil cut deal with OPEC and is inclined to believe that an extension is reasonable.

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