Net profit of Russian Rosneft more than triples in the second quarter and shares hit record
Russian Rosneft

Rosneft, the largest Russian oil company, said on Tuesday that its net profit in the second quarter more than tripled to 228,000 million rubles (US $ 3.6 billion) due to higher production and higher prices, which led to its actions a historical maximum.

Rosneft, a company in which Qatar will become its third largest shareholder after the Russian state and BP, said its profit was also backed by a one-time profit for acquiring a stake in a joint oil and gas exploration and extraction venture, the reappraisal of a participation in another joint venture.

The company, led by Igor Sechin, a close ally of President Vladimir Putin, said its revenues in the second quarter reached 2.07 trillion rubles (US $ 32.549 billion), an increase of 48% year-on-year.

The profit before interest, taxes, depreciation and amortization (EBITDA) of Rosneft was 565,000 million rubles (US $ 8.884 billion), an increase of 85%.

“The second quarter was more than anything a reflection of the administration’s efforts to improve the company’s efficiency,” Sechin said in a statement.

During the management of Sechin, which took over the company in 2012, Rosneft has made large acquisitions in Russia and abroad, including the purchase of local rival TNK-BP in 2013 for US $ 55 billion. That business made Rosneft the world’s largest oil company by publicly traded production.

According to the Aton brokerage, Rosneft’s net debt, excluding prepayments for oil supplies, was 3.3 trillion rubles (US $ 51.890 billion) at the end of the second quarter, equivalent to 1.8 times the net debt / EBITDA. In the first quarter, it reached 101 billion rubles (US $ 1.588 billion).

The company also said Tuesday that Venezuela’s debt to the firm reached US $ 3.6 billion in the second quarter of this year, down from the US $ 4 billion reported at the end of the previous three-month period.

Tuesday’s announcements saw Rosneft’s shares rise to a record high of 425.5 rubles (US $ 6.69) per share.

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