• 5 minutes Malaysia's Petronas vs. Sarawak Court Case - Will It End Up In London Courts?
  • 9 minutes Sell out now or hold on?
  • 16 minutes Oil prices going down
  • 32 mins Oil prices going down
  • 13 hours After Three Decade Macedonia End Dispute With Greece, new name: the Republic of Northern Macedonia
  • 2 hours Sell out now or hold on?
  • 3 hours Malaysia's Petronas vs. Sarawak Court Case - Will It End Up In London Courts?
  • 17 mins Oil and Trade War
  • 12 hours Two Koreas Agree To March Together At Asian Games
  • 4 hours When will oil demand start declining due to EVs?
  • 3 hours What If Canada Had Wind and Not Oilsands?
  • 2 hours Russia and Saudi Arabia to have a chat on oil during FIFA World Cup - report
  • 4 hours Correlation Between Oil Sweet Spots and Real Estate Hot Spots
  • 3 hours venezuala oil crisis
  • 2 hours Trump Hits China With Tariffs On $50 Billion Of Goods
  • 12 hours Geopolitical and Political Risks make their strong comeback to global oil and gas markets
  • 35 mins Germany Orders Daimler to Recall 774,000 Diesel Cars in Europe
  • 22 hours No LNG Pipelines? Let the Trucks Roll In
  • 22 hours China & India in talks to form anti-OPEC

Breaking News:

Egypt Raises Fuel Prices By Up To 50%

Europe Is Awash With Oil Stored On Ships

Europe Is Awash With Oil Stored On Ships

Bullish sentiment in markets makes…

Is This The Most Contentious OPEC Meeting Yet?

Is This The Most Contentious OPEC Meeting Yet?

OPEC’s members have been divided…

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