Oil price surge pays off for Rosneft
Russian producer Rosneft has seen its profits for 2007 jump on the back of
acquisitions and strong global oil prices.
Rosneft said its net profit to US Generally Accepted Accounting Principles
(GAAP) more than tripled to $12.86 billion last year from $3.53 billion in
2006, beating analysts' forecasts of $12.78 billion.
In the fourth quarter alone, Rosneft's net profit rose to $2.98 billion from
$603 million in the fourth quarter of 2006, also above analysts' estimate of
$2.87 billion.
Revenues rose to $49.22 billion in 2007 and to $16.49 billion in the fourth
quarter. Analysts had expected the company to report revenues of $48.93
billion and $16.45 billion, respectively.
Rosneft said its net debt fell to $23.8 billion at March 31 from $26.3 billion
at Dec. 31 and $27.8 billion at Sept. 30.
"The total debt reduction of over $4 billion... represents substantial
progress towards the company's target leverage (debt/EBITDA) ratio of
approximately one time by the end of 2009," Rosneft said.
Earnings before interest, taxation, depreciation and amortisation (EBITDA)
soared to $5.08 billion in the fourth quarter from $0.87 billion a year
earlier and well above analysts' forecast of $4.57 billion.
Last year, Rosneft bought almost all the assets of bankrupt oil producer Yukos
at state-forced auctions. The assets, which included two major production
units and five refineries, helped Rosneft become Russia's largest oil
producer and refiner.
08 April 2008 13:53 GMT
| last updated:
08 April 2008 14:16 GMT
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