OAO Tatneft, the oil producer in Russia’s Tatarstan region, said first-half profit rose 41 percent on lower costs.
Net income rose to 29.7 billion rubles ($1 billion) from 21 billion rubles in the first half of last year, the Almetyevsk- based company said on its Web site today. Revenue fell 33 percent to 164 billion rubles, as the price of oil fell.
“It’s not just the devalued ruble,” said Vladlen Voskoboinikov, Tatneft’s director of international financial reporting, by telephone today. “It’s a number of steps taken by the company including renegotiation with subcontractors.”
Russian oil companies receive payment for exported oil in dollars while paying contractors for services in rubles. The ruble averaged 33.1 to the dollar in the first half of this year, as opposed to 23.9 to the dollar in the same period last year, according to Bloomberg data.
Total costs declined 40 percent to 128.6 billion rubles in the first half. Export duties fell 51 percent to 32.5 billion rubles.
In dollar terms, net profit rose 2.4 percent, Tatneft (TATN) said.
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