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Russia's Rosneft oil company says second quarter net profits down 35 percent

Russia's Rosneft oil company says second quarter net profits down 35 percent

Russia's state-controlled oil giant OAO Rosneft reported a 35 percent drop in second-quarter profits Wednesday, compared to a year ago when it benefited from a one-time gain on asset sales.
In a statement, Rosneft said its net profits, calculated under international accounting standards, came to US$1.08 billion (euro850 million) in the April-June period. That compared with US$1.66 billion a year earlier, when the company sold its Sevmorneftegaz unit.
Still, the company's net profits came in below forecasts of US$1.49 billion (euro1.17 billion), according to a poll of analysts by Dow Jones Newswires.
Total revenues increased 61 percent to US$8.84 billion (euro6.94 billion) for the second quarter, up from US$5.50 billion a year earlier. Production grew 9.8 percent over the quarter to 1.57 million barrels per day.
Rosneft, currently Russia's third largest oil producer, is angling to increase its size and clout substantially, having acquired a 1 million-barrel-a-day production unit from the shattered oil company Yukos nearly two years ago during a disputed auction.
Yukos was declared bankrupt by a Moscow court earlier this year and its assets are being readied for liquidation _ a process in which analysts expect to see Rosneft vying with state controlled natural gas monopoly OAO Gazprom for its refineries and remaining production.
A top Rosneft executive, meanwhile, appeared to confirm a newspaper report Wednesday that the company was seeking a US$15 billion to US$20 billion (euro12 billion to euro16 billion) loan from foreign banks to fund possible Yukos acquisitions.
Vice President Peter O'Brien was quoted by the Interfax news agency as saying that the company had begun preliminary negotiations aimed at financing possible purchases.


Updated : 2021-06-18 07:32 GMT+08:00