A worker turns a valve in front of tanks bearing the Rosneft logo at UdmurtNeft's Gremikhinskoye oilfield near the Ural Mountains.  The firm said earnings were almost level with last year period. Sergei Karpukhin / Reuters
A worker turns a valve in front of tanks bearing the Rosneft logo at UdmurtNeft's Gremikhinskoye oilfield near the Ural Mountains. The firm said earnings were almost level with last year period. SergShow more

Russian oil major Rosneft post slight fall in quarterly profit



Rosneft, Russia’s biggest oil producer, posted a net profit of 52 billion roubles (Dh3.33bn) in the final three months of last year, down from 53bn roubles in the same period of 2015, it said.

Last year the state-controlled company bought a controlling stake in the smaller rival Bashneft and at the end of the year said a 19.5 per cent stake in Rosneft had been sold by the state to Qatar and oil trader Glencore.

Meanwhile, Gazprom Neft, the country’s third-largest oil producer, and the gas producer Novatek both reported better results this week, boosted by new fields and higher oil prices.

Gazprom Neft, controlled by Russia’s top gas producer Gazprom, posted on Wednesday a fourth-quarter profit of 52.7bn roubles, having reported a loss of 21.2bn roubles in the last three months of 2015.

The company, Russia’s fastest-growing oil producer, said its total output of hydrocarbons was up 8.2 per cent last year at 86.2 million tonnes of oil equivalent.

Novatek, the country’s second biggest gas producer, said on Tuesday its net profit last year rose by 1.3bn roubles to 133.8bn roubles, while free cashflow increased by 69.4 per cent to 139.4bn roubles.

Last year both Rosneft and Gazprom Neft increased their output due to the start-up of new fields such as Messoyakha, Novy Port and Suzun, while Novatek increased production at the Yarudeyskoye oilfield.

Oil output in Russia, one of the world’s largest producers, rose to its highest level in almost 30 years to 11.21 million barrels per day (bpd) at the end of 2016.

Output then dropped by 100,000 bpd in January due to a decline by all the major domestic producers following the Opec-led accord to reduce global market supplies to support oil prices.

* Reuters

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