Rosneft received 323 billion rubles of net profit in the first quarter

Rosneft’s IFRS net profit in the first quarter of 2023 increased by 43% compared to the fourth quarter of 2022, to RUB 323 billion, says in reporting. EBITDA increased by 25% qoq to RUB 672 bn. Rosneft shares after the publication of the report rose by 1.3%.

The company’s capital expenditures for the specified period decreased by 11.3% to RUB 275 billion. Rosneft increased hydrocarbon production by 1.3% quarter-on-quarter to 5.6 million barrels of oil equivalent per day. Production of liquid hydrocarbons increased by 0.8% to 4 million barrels per day. The company’s average daily gas production reached 1.5 mmboe. per day, an increase of 2.7%.

The head of Rosneft, Igor Sechin, said that the main driver of production volumes was the Sakhalin-1 project, within which daily production increased by 1.8 times quarter on quarter. At the same time, he added that “the forced downtime after the departure of the American company ExxonMobil from the position of the project operator had a negative impact on the technical conditions for field development.”

“The pressure on the company’s performance in the reporting quarter was exerted by changes to the Tax Code, which came into force in January, an embargo on petroleum products by a number of unfriendly countries, introduced in February in addition to the embargo on oil, as well as the restriction of oil production in the country, starting in March ‘, Mr. Sechin said.

As it became known to Kommersant, Rosneft is proposing to the government to tie the calculation of oil taxes to Dubai, and not Brent, as it is now. The reason is that the main flows of Russian oil are now redirected to Asia, where Dubai is mainly traded, while the European Brent grade is poorly represented. Rosneft itself has already switched to linking to Dubai for the supply of Urals. The Ministry of Finance is “working through” this idea.

Details – in the material “Kommersant” “Dubai is like oil”.

Laura Keffer