Rosneft First-Quarter Profit Falls 14% After TNK-BP Acquisition
OAO Rosneft, which acquired oil venture TNK-BP for $55 billion this year, said first-quarter profit declined about 14 percent after taxes and financing expenses rose.
Net income attributable to shareholders dropped to 101 billion rubles ($3.2 billion) from 117 billion rubles in the first three months of last year, the Moscow-based company said today in a statement. Rosneft included TNK-BP’s results for the 11 days after the acquisition. A foreign exchange loss and higher net finance expenses, as well as increases in export and mineral extraction taxes, caused profit to fall, the state-run producer said.
Rosneft became the world’s largest publicly traded crude producer after the takeover of TNK-BP, Russia’s third-largest oil company, boosted its output past PetroChina Co. Average oil prices declined more than 5 percent in the first quarter from a year earlier, cutting into earnings, according to the company, the first of Russia’s oil producers to report results for the first quarter.
Total output surged 82 percent to 4.8 million barrels of oil equivalent a day, while crude production rose 73 percent to 4.17 million barrels a day, the company said. Sales climbed to 7 percent to 812 billion rubles.
Net debt surged to 1.78 trillion rubles, according to the statement.
To contact the reporter on this story: Stephen Bierman in Moscow at email@example.com