Rosneft PJSC’s second-quarter profit decreased about 34 percent, coming in better than analysts estimated, even as a recovery in oil prices sputtered out at below last year’s price levels.
Net income fell to 89 billion rubles ($1.4 billion) in the second quarter from 134 billion rubles a year earlier, according to the Moscow-based company. That was higher than the 83 billion-ruble average estimate of nine analysts surveyed by Bloomberg News. Revenue dropped 7.9 percent to 1.23 trillion rubles.
A rout in commodities prices has Russia facing its second year of recession. The government is considering selling nearly 20 percent of Rosneft, the nation’s biggest company, as early as this year to help fill a gap in its budget. State finances have borne the brunt of oil’s crash. The companies themselves have been sheltered by a progressive tax system.
Earnings before interest, taxes, depreciation and amortization were 348 billion rubles, according to the statement. That compared with an analyst estimate of 307 billion rubles.
Free cash flow came in at $1.3 billion, while Sberbank CIB estimated just below $1 billion in an Aug. 9 note. Net debt fell to $23.4 billion from $23.9 billion at the end of the first quarter.
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