Rosneft Oil Co doesn’t count on the present high-price atmosphere amid the struggle within the Center East to inflate income.
“The market atmosphere stays extremely risky this yr”, chief govt Igor Sechin stated within the Russian state-owned firm’s assertion of outcomes for 2025. “After two months of comparatively low costs, the oil market reacted sharply to the escalation of the battle between the US and Iran and the next disruption of delivery by means of the Strait of Hormuz.
“On the similar time, the optimistic influence of rising oil costs on business revenues shouldn’t be overstated, as it’s largely offset by larger prices for freight, insurance coverage and foreign money conversion.
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“The first beneficiaries of the present value hike are, at the start, logistics, transport, insurance coverage corporations and monetary establishments”.
Rosneft reported an 18.8 % lower in annual income to RUB 8.24 trillion ($105.17 billion), citing decrease costs in 2025, a sustained appreciation of the ruble and sanctions in opposition to Russia.
EBITDA dropped 28.3 % in opposition to 2024 to RUB 2.17 trillion for 2025. Web earnings decreased 73 % to RUB 293 billion. Adjusted free money move declined 45.9 % to RUB 700 billion.
“The web debt/EBITDA ratio on the finish of 2025 amounted to 1,5х, which continues to stay at a degree considerably under the minimal covenant below the mortgage agreements”, Rosneft stated.
Liquid manufacturing averaged 3.69 million barrels per day (a complete of 181.1 million metric tons), with This autumn output rising 2.2 % quarter-on-quarter. “The indicator efficiency was pushed by the change in oil manufacturing quota in compliance with the choices of the Russian authorities”, Rosneft stated, referring to Moscow’s obligations to the Group of the Petroleum Exporting International locations Plus alliance.
Rosneft produced 1.33 million barrels of oil equal per day (MMboed) of pure gasoline final yr, with This autumn volumes rising 12.4 % sequentially. “The indicator efficiency was as a result of scheduled preventive upkeep on the key belongings”, Rosneft stated.
“The corporate’s major objective for the close to future is to keep up gasoline manufacturing on the present degree”.
Rosneft’s hydrocarbon manufacturing totaled 5.02 MMboed final yr, whereas its reserves stood at 11.5 billion tons of oil equal at yearend, the corporate stated.
Refining volumes decreased to 75.7 million metric tons, with Rosneft attributing the decline to “the necessity for upkeep and restore works in addition to to the optimization of refinery utilization amid the present pricing atmosphere, logistics constraints and demand”.
“In 2025, 40.3 mln tons of petroleum merchandise have been equipped to the home market, together with 12.3 mln tons of gasoline and 16.4 mln tons of diesel gas”, it stated.
“Rosneft continues to actively take part of buying and selling actions on the St Petersburg Worldwide Mercantile Trade. Within the reporting yr, 9.4 mln tons of gasoline and diesel gas have been bought on the alternate, the share of the corporate’s gross sales within the whole alternate gross sales of those petroleum merchandise exceeded 30 %”.
Sechin stated, “In 2025, the Russian oil business discovered itself within the epicenter of a ‘good storm’, triggered by a mix of hostile market circumstances, a difficult home macroeconomic atmosphere and a hostile geopolitical local weather”.
“Regardless of these challenges, the business continues to play the main function in guaranteeing socioeconomic growth and producing Russian price range revenues”, the CEO added. “Its contribution stems not solely from the mineral extraction tax and extra earnings tax but in addition from different fiscal funds made by oil corporations (company earnings tax, excise taxes on petroleum merchandise, property tax, and many others).
“Moreover, the price range advantages from a broad vary of revenues generated by associated industries similar to metallurgy, mechanical engineering, oilfield companies, development, transport, electrical energy technology.
“Further vital income sources embody private earnings tax and social safety contributions from staff in these sectors, alongside dividends from oil and gasoline corporations.
“Consequently, the oil business’s whole contribution to price range revenues is roughly twice the oil and gasoline income determine reported by the Ministry of Finance.
“Given the shortage of ruble liquidity, the business basically subsidizes the home market by means of international alternate earnings, which helps the steadiness of the ruble alternate charge and acts as a consider curbing inflation.
“The business’s strategic significance makes it a major goal for sanctions stress. Along with U.S. blocking sanctions on main oil corporations, European stress continues to mount on by means of embargoes and value caps.
“Systemic stress on the important thing patrons of Russian vitality assets is evidenced by sanctions in opposition to the tanker fleet and widespread insurance coverage denials, which have brought about insurance coverage premiums to surge by tens of occasions. The heightened dangers of vessel detention or seizure have exacerbated the state of affairs. In March 2026, freight charges for transporting Russian oil from the Baltic Sea to India exceeded $20 per barrel – this represents a tenfold improve in logistics prices in comparison with early 2022, when supply to conventional European markets averaged round $2 per barrel.
“Moreover, cross-border funds stay obstructed, because the Financial institution of Russia has but to ascertain a sanctions-resilient settlement system. Consequently, Russian exporters and their counterparties have needed to independently develop international commerce settlement options. This has led to a manifold improve within the whole cost and conversion prices in comparison with the pre-crisis degree.
“Along with monetary, logistical and technological constraints, the business now faces systemic threats from terrorist assaults on oil infrastructure amenities together with refineries, storage amenities, filling stations, terminals and oil pipelines”.
“Falling oil costs, widening reductions, alongside the manufacturing restrictions below the OPEC+ settlement, systematic restrictions by Transneft on the acceptance of the crude oil into the pipeline system and nationwide foreign money appreciation led to say no in gross sales income”, Sechin defined.
“Furthermore, prices have been pushed upward by the expansion in tariffs of pure monopolies, which outpaced inflation, and the rising complexity of cross-border settlements and logistics. These components collectively exerted downward stress on EBITDA for 2025.
“The Financial institution of Russia’s elevated excessive key charge is noteworthy, with its common degree exceeding 19 % in 2025. This resulted in a major improve in debt servicing prices, which have been greater than 4 occasions larger within the reporting yr than in 2020 regardless of comparable debt ranges. The rise within the statutory company earnings tax charge put further stress on the web earnings.
“In This autumn 20225, in contrast to different sector gamers, the corporate didn’t have to acknowledge vital losses following the imposition of U.S. blocking sanctions, because of prudent administration selections to proactively reduce its presence in unfriendly nations”.
Regardless of the atmosphere, Rosneft has grown its shareholders by practically 170,000 to 1.67 million individuals over the previous yr, Sechin stated.
To contact the writer, e mail jov.onsat@rigzone.com
