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, %
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
QRTGCBDBGXGBGDB -0- Nov/01/2012 09:33 GMT
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