Rosneft Oil Co. has reported RUB 2.28 trillion ($28.85 billion) in income for the primary quarter (Q1), down 8.5 p.c from the prior three-month interval on weaker Urals crude oil costs.
The Russian state-owned built-in oil and fuel firm produced 3.68 million barrels per day (bpd) of liquid hydrocarbons within the January-March 2025 interval, constrained by “difficult climate circumstances in Central Russia, and oil manufacturing cap in compliance with the choices of the Russian Authorities”, Rosneft mentioned in a web based assertion. Fuel output averaged 1.37 million barrels of oil equal (boe) a day, totaling 20.2 billion cubic meters (713.36 billion cubic toes).
“Greenfield tasks within the Yamal-Nenets Autonomous District commissioned in 2022 account for round a 3rd of the Firm’s fuel manufacturing”, Rosneft famous. In Q1 2025 it commissioned over 600 wells, 76 p.c of which have been horizontal.
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On Saturday the Group of the Petroleum Exporting Nations (OPEC) introduced a complete improve of 411,000 bpd for the July manufacturing of Russia and 7 different OPEC+ members, accelerating the gradual return of two.2 million bpd of voluntary cuts.
In the meantime Rosneft’s refining volumes totaled 19.5 million metric tons, down quarter-on-quarter. “The refining quantity pattern is attributable to optimization of refinery utilization in view of the present pricing surroundings and demand, and the necessity for upkeep and restore works”, it mentioned.
Rosneft offered 2.2 million metric tons of gasoline and diesel on the St Petersburg Worldwide Mercantile Trade, 1.7 occasions the required quantity, in response to the corporate.
“Within the reporting interval, the Firm operated within the context of steady deterioration of the macroeconomic surroundings that included decrease costs and wider reductions for Russia’s Urals crude oil, new sanction restrictions, in addition to a stronger ruble”, commented Rosneft chair and chief government Igor Sechin.
Earnings earlier than curiosity, taxes, depreciation and amortization fell 15.5 p.c sequentially to RUB 598 billion, with an EBITDA margin of 26 p.c. Prices and expenditures rose 5.4 p.c to RUB 1.93 trillion.
“Within the first quarter of 2025, the Firm’s EBITDA was beneath the extra strain from rising transportation bills as a result of tariff indexation by the pure monopolies”, Sechin mentioned. “For instance, Transneft oil transportation tariffs have gone up by 9.9 p.c since January 2025, whereas petroleum product transportation tariffs and freight railroad transportation bills have elevated by 13.8 p.c for the reason that finish of 2024.
“Most pure monopolies tariffs, together with even the tariffs imposed by the Russian Publish, rise outstripping inflation: since early 2024, the value of sending an peculiar postal card has elevated by 20 p.c. Electrical energy tariffs have been raised by 9.1 p.c from July 2024 and are scheduled to be listed by one other 11.6 p.c in July 2025.
“Furthermore, in accordance with the up to date socio-economic improvement forecast, in 2025, indexation of regulated fuel costs, electrical energy tariffs, and tariffs of grid corporations is deliberate to exceed the forecast inflation price, accelerating price inflation.
“In these circumstances, price management stays our fixed precedence. Within the first quarter of 2025, upstream lifting prices amounted to $3/boe according to our strategic objective”.
Internet revenue attributable to shareholders landed at RUB 170 billion, up quarter-on-quarter however down year-on-year on account of an rising key rate of interest.
The board is proposing RUB 14.68 per share for the ultimate dividend on 2024 outcomes, which might end in complete annual dividends of RUB 51.15 per share.
On the finish of the quarter Rosneft’s web debt to EBITDA ratio amounted to 1.36x, “considerably under the minimal covenant” beneath its mortgage agreements, the corporate mentioned.
To contact the writer, e mail jov.onsat@rigzone.com
