Rosneft’s Q3 profit jumps after pipeline cleanup
MOSCOW: Russia’s Rosneft energy giant yesterday announced a large jump in third quarter year-on-year net income due to sales growth and clean-up of contamination of a strategic pipeline.
Between July and September, Russia’s largest oil producer posted net income of 225 billion rubles (around $3.5 billion), up 58.5 percent on the same period last year and up 16 percent on the previous quarter. In the third quarter, the state-controlled group “was able to increase liquids production” quarter on quarter and “partially compensate” for production decline in the second quarter as a result of restriction of oil intake into trunk pipelines, said Rosneft chief Igor Sechin. He added in a statement the increase in income was also due to sales growth amid falling crude prices. In April, a key pipeline to Europe named Druzhba, or Friendship, was shut down due to contamination with chlorine compounds.
The pipeline takes oil to a number of countries including Poland, Germany and Slovakia. On Tuesday, Rosneft reported that its liquid production rose 2.1 percent from the second to the third quarter due to the contamination being cleared up. “We restored crude oil refining throughput and strengthened our positions in the traditional markets,” Sechin was quoted as saying.
The group’s liquid production figure was nevertheless down 1.4 percent year-on-year, which the company attributed to Russia’s agreement with OPEC to reduce production. Rosneft announced in late October it will price its oil exports in euros, not dollars, to reduce the impact of US sanctions.
Russia is seeking to wean its economy off the dollar and has cut the currency’s share in its international reserves.