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Russia's Rosneft oil company says third quarter net profits down 13 percent

Russia's Rosneft oil company says third quarter net profits down 13 percent

Russia's state-controlled oil giant OAO Rosneft reported a 13 percent drop in third-quarter profits Wednesday, mainly blaming lower crude prices and the lagging effect of higher taxation.
In a statement, Rosneft said its net profits, calculated under international accounting standards, came to US$1.05 billion (euro800 million) in the July-September period.
That compared with US$1.21 billion (euro920 million) a year earlier. The results were fractionally above analysts' expectations of around US$1.02 billion (euro780 million).
Analysts said the company's outlook remained favorable because of its forecast for rapid production growth and its pole position in driving consolidation of the oil sector in Russia.
Rosneft, currently Russia's second 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 two years ago during a disputed auction.
Rosneft earlier this week said it intended to raise its output of oil and gas condensate next year to the equivalent of over 1.9 million barrels a day, which would make it Russia's largest oil producer by volume, overtaking OAO Lukoil.
"The results will at least have no negative effect," Oleg Maximov, an analyst at Troika Dialog in Moscow, told Dow Jones Newswires, although he noted that net profit had fallen short of his estimates due to a surprisingly heavy tax burden.
He noted that the same combination of global oil market conditions and high taxation would mean that net income will be "much lower" in the fourth quarter.
Taxes other than income tax increased by 22 percent while export duties, which are routinely adjusted by the government every two months, rose by 66 percent, reflecting the spike in world crude prices in the second quarter of this year.
Total revenues increased 29 percent to US$9.17 billion (euro6.97 billion) for the third quarter, up from US$7.08 billion (euro5.38 billion) on the back of a 9.3 percent rise in production, to an average of 1.618 million barrels a day.


Updated : 2020-12-05 05:22 GMT+08:00