Net income at Russia’s biggest oil producer has increased five-fold year-on-year in the second quarter of 2014 as the company revs up its daily production figures.
Rosneft reported a net income of 172billion roubles ($4.9billion) in the period, closing the first half of the year on a $7.4billion.
The company’s free cash flow was $3.2 billion, which is three times higher than in the second quarter of 2013.
While the EBITDA grew by 41% to $8.9billion as the firm implemented an operational efficiency programme and controlled its operating and administrative expenses.
The figures were driven by stable hydrocarbon production levels, successful development of new projects, capital discipline and control of operational expenses, Rosneft said.
Total hydrocarbon output in the second quarter of the year was 4.6% higher than in 2013, at 5 million barrels of oil equivalent per day.
Gas production reached 13.5 billion cubic meters, which is a 45% increase year-on-year.
Rosneft’s sales activities in the period, including signing a five-year supply contract with BP for up to 12 million tons of crude, resulted in an increase in oil and petroleum products sales of 1.3%, amounting to 52.9 million tons.
The overall sales proceeds amounted to $41billion, which is 22% higher than in the same period of 2013.
The company’s performance seems to be so far unaffected by the threat of further sanctions by the US and European Union over the handling of the tragic downing of a Malaysian passenger jet in eastern Ukraine that killed 298 passengers and crew.
“In the reporting quarter the company continued successful implementation of key projects and once again demonstrated strong financial results,” said Igor Sechin, president of Rosneft.
“President of Russia Vladimir Putin participated in the inauguration ceremony of commissioning of the unique Berkut platform, which will add up to 4.5 million tons of oil to the annual production of the Sakhalin-1 project.
“We continued successful preparation for drilling the first well in the Kara Sea: worked to modify the West Alpha drilling rig, import the equipment and materials, arrange the onshore support base and transport the drilling rig to the drilling site.
“Together with our partners – the world’s leading oil companies – we are working on a plan to minimize the consequences of including Rosneft on the sanction lists.”
