Rosneft ROSN 3rd Quarter Results

  Rosneft (ROSN) - 3rd Quarter Results

RNS Number : 0791Q
OJSC OC Rosneft
01 November 2012

 Rosneft Posts Record Quarterly Net Profit Of 181 Billion Rubles, 4.1% Higher
           Daily Hydrocarbon Production And Finalises JV With Itera

On  1  November  2012  Rosneft  published  its  consolidated  IFRS   financial 
statements for Q3 2012 and 9M 2012.

Operating and financial highlights

                           Q3 2012 Q2 2012 Change, % 9M 2012 9M 2011 Change, %
Operating results
Hydrocarbon production,
th. boepd                    2,729   2,621      4.1%   2,662   2,574      3.4%
Crude oil production, th.
bpd                          2,454   2,413      1.7%   2,425   2,374      2.1%
Commercial gas production,
bcm (incl. Itera share)       4.30    3.22     33.5%   11.02    9.26     19.0%
Refinery throughput, mln t   15.98   14.04     13.8%   45.56   41.95      8.6%
Financial results, RUB bln
Revenues                       802     718     11.7%   2,268   1,954     16.1%
EBITDA                         191      89    114.6%     445     498   (10.6%)
Net profit                     181     (8)         -     285     247     15.4%
Capital expenditures           105     121   (13.2%)     344     258     33.3%
Free cash flow                  53      25    112.0%      32     112   (71.4%)

Hydrocarbon production  (including production  by  subsidiaries and  share  in 
production by affiliated companies) increased 3.4% over the first nine  months 
of 2012 compared to the same period last year to 2,662 th. boepd. Daily  crude 
oil production grew 2.1% in line with the revised plan to boost production  2% 
in 2012. This increase in daily production was largely thanks to higher output
at Vankorneft  and  Verkhnechonskneftegaz fields.  Gas  production  (including 
share in the joint venture with Itera) totalled 11.02 bcm, a 19.0% increase on
the same period last year.

Throughput at Rosneft's Russian and international refineries was 45.56 million
tonnes in the first nine months of the year. This 8.6% increase in  throughput 
is attributed to the acquisition of a 50% share in Ruhr Oel GmbH in May  2011. 
Refinery throughput in Q3 2012 rose 13.8% to 15.98 million tonnes on the  back 
of the completion  of scheduled  repairs in Q2  at the  Achinsk and  Kuibyshev 
refineries in Russia and the Gelsenkirchen refinery in Germany.

Revenues for the 9-month period were up  16.1% at RUB 2,268 billion thanks  to 
higher prices  for  the Company's  products  and greater  sales  volumes.  The 
improvement on the global oil and petroleum product markets and an increase in
petroleum product sales volumes in Q3  2012 helped drive an 11.7% increase  in 
revenues, which totalled RUB 802 billion for the quarter.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) for 9M
2012 fell  10.6% to  RUB 445  billion rubles.  This indicator  was  negatively 
impacted as the Company began to pay  standard rate MET and export duties  for 
oil produced at the Vankor  field in H1 2011 and  also by the higher base  MET 
rate and transport tariffs introduced in January 2012.

EBITDA more than doubled in Q3 2012 compared to the previous quarter to  total 
RUB 191 billion. This was driven  by effective cost control in production  and 
improved efficiency in the Company's commercial activities domestically and on
the international market. As prices for oil and petroleum products rose in  Q3 
2012, Rosneft also benefited from an export duty time lag.

Rosneft's 9M 2012 net profit  grew 15.4% to RUB  285 billion. This net  profit 
figure includes the gain recognition  in Q3 2012 of  income of RUB 65  billion 
from the acquisition of 51% in Itera.  Net profit in Q3 2012 reached a  5-year 
high of RUB 181 billion.

Free cash flow for 9M  2012 was RUB 32 billion,  which is lower than the  same 
period in 2011 due to increased investment in refining. Rosneft generated free
cash flow of RUB 53 billion in Q3 2012. Taking into account dividend payments,
the Company reduced net debt from RUB 658 billion to RUB 625 billion.

Commenting on Q3  2012 results, Rosneft  President Igor Sechin  said: "The  Q3 
results reflect  the beginning  of broad-reaching  transformations within  the 
Company to cut costs and improve efficiency, which have already yielded strong
results in  production and  sales. This  allows us  to improve  the  Company's 
financial standing and build stronger foundation for efficient  implementation 
of our strategic projects."

                                                              November 1, 2012

                                                  Rosneft Information Division

                                                     Tel.: + 7 (495) 411 54 20

                                                       Fax: +7 (495) 411 54 21

These materials contain statements about  future events and expectations  that 
are forward-looking in nature. Any statement in these materials that is not  a 
statement of  historical fact  is a  forward-looking statement  that  involves 
known and  unknown risks,  uncertainties  and other  factors which  may  cause 
actual results,  performance  or achievements  expressed  or implied  by  such 
forward-looking statements to differ. We  assume no obligations to update  the 
forward-looking statements contained herein to reflect actual results, changes
in assumptions or changes in factors affecting these statements.

                     This information is provided by RNS
           The company news service from the London Stock Exchange


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