Oct. 29 (Bloomberg) -- OAO Rosneft, Russia’s largest oil producer, said third-quarter profit rose eightfold from the previous three-month period after it recorded a 167 billion-ruble ($5.2 billion) gain on the value of TNK-BP.
Net income rose to 280 billion rubles from 35 billion rubles in the second quarter, the Moscow-based company said in a statement on its website. Earnings before interest, taxes, depreciation and amortization rose 41 percent to 303 billion rubles, beating the average estimate of 272 billion rubles from 13 analysts surveyed by Bloomberg.
State-run Rosneft became the world’s largest traded oil producer by volume after it completed the $55 billion purchase of TNK-BP, Russia’s third-largest producer, in March. Rosneft is also boosting its natural gas business by acquiring a stake in the SeverEnergia venture, assets from OAO Alrosa and Itera.
“We made significant progress in delivering our strategic goals,” Chief Executive Officer Igor Sechin said in the statement, noting improvements in the industry’s tax regime.
Rosneft shares jumped as much as 1.5 percent and traded up 1 percent at 256.24 rubles by 2:03 p.m. in Moscow.
Dividends, paid out at 25 percent of net income, will be supported by the accounting gain after Rosneft’s auditor, Deloitte, estimated the fair value for TNK-BP at 167 billion rubles higher than the acquisition price, Sechin said on Sept. 27 in Sochi, Russia.
Revenue increased 15 percent to 1.36 trillion rubles from the previous quarter, according to the statement.
To contact the editor responsible for this story: Will Kennedy at email@example.com