Rosneft's business results in the first quarter of 2023 jump in profits by 46%

Rosneft’s business results in the first quarter of 2023 jump in profits by 46%

The results of Russia’s Rosneft business recorded a significant jump in net profits during the first quarter of 2023, despite the internal and global difficulties, as it increased by 45.5% on a quarterly basis to 323 billion rubles (3.9 billion US dollars), which the company attributed mainly to the increase in profits. operational.

Total operating profits amounted to 488 billion rubles ($6 billion), which represents an increase of approximately 36% on a quarterly basis, according to Rosneft’s statement of business results, which it issued today, Wednesday (May 31, 2023), and which I reviewed. specialized power platform.

The Chairman of the Board of Directors and CEO of the company, Igor Sechin, praised the strong business results in the first quarter of 2023, but stressed that the repercussions of the decision to reduce Russian oil production will show its features on the company in the second quarter of the year.

Sakhalin production supports the results of Rosneft’s business

“In the first quarter of 2023, despite the deterioration of the external environment, Rosneft managed to achieve growth in production of both oil and gas liquids,” said Igor Sechin.

He stressed that “the Sakhalin-1 project was the main driver of growth, as daily production increased by 1.8 times on a quarterly basis.”

Employees of the Russian company Rosneft – photo courtesy of “Egypt Oil”

Sechin added, “I must point out that the period of work stoppage after the exit of the previous project operator, the American Exxon Mobil Corporation, had a negative impact on the technical conditions for developing the field,” according to statements seen by the specialized energy platform.

He pointed out that the company faced several challenges in the first quarter of 2023, including the amendments to the tax law that were enacted in January, and the entry into force of the ban on oil products from a number of unfriendly countries in February, in addition to the oil embargo. Russia, and Russia cut crude oil production in March.

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Sechin concluded his remarks, saying: “While the cut did not have a significant impact on the results of the first quarter of 2023, it will have a strong impact on the results of the following quarter.”

Rosneft’s business results in the first quarter of 2023

Capital expenditures for the first quarter of 2023 amounted to about 275 billion rubles ($3.4 billion), representing a quarterly decrease of 11.3%, according to Rosneft’s business results.

The company’s revenue in the first quarter of the year decreased by 1.1% on a quarterly basis, to 1.823 trillion rubles ($ 22.5 billion), while the price of Urals crude in rubles decreased by 8.2%.

EBITDA rose 25.1% to 672 billion rubles ($7.7 billion).

This was partly attributed by Rosneft to the reduction in unit operating expenses for hydrocarbon production and refining expenses in Russia, by 5% and 12.7% on a quarterly basis, respectively.

The EBITDA margin reached a record high of 36.7%.

In the reporting period, Rosneft paid interim dividends to the company’s shareholders totaling more than 216 billion rubles ($2.6 billion) in full and on time.

In its statement of business results for the first quarter of 2023, the company confirmed that it continues to improve its debt structure, in order to match the revenue structure and reduce the cost of debt.

Rosneft production of oil and gas

The Russian company Rosneft’s production of hydrocarbons in the first quarter of 2023 amounted to about 5.6 million barrels per day, an increase of 1.3% over the previous quarter.

The production of oil and liquid fuels in the first quarter of 2023 reached about 4 million barrels per day, which is an increase of 0.8% over the fourth quarter of 2022, according to what was stated in the statement of Rosneft’s business results in the first quarter of 2023.

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One of the sites of the Russian company Rosneft
One of the websites of the Russian company Rosneft – Photo courtesy of Reuters

The main growth driver was the Sakhalin-1 project, as Rosneft became the operator of the project at the end of 2022, and the average daily production increased 1.8 times on a quarterly basis.

The company’s average daily gas production in the first quarter of 2023 was about 1.5 million barrels per day of oil equivalent, which represents an increase of 2.7% on a quarterly basis.

The share of gas in hydrocarbon production increased during the first quarter of 2023 to 27.6%.

The company also processed 22.6 million tons of crude oil in Russia, and the oil refining depth rate rose to 76% in the first quarter of 2023 – a term used in Russia to evaluate the efficiency of processing oil derivatives -.




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