"Rosneft Admits 70% Drop In Profits At Once

Oil prices are falling and spending is rising.

The crisis in Russia's oil industry, which hit it after Russia's full-scale invasion of Ukraine, is clearly evident in Rosneft's activities.

The company released a report in which it reported a dramatic decline in key financial indicators: falling oil prices, high interest rates and the strengthening ruble have sharply hit the Russian oil giant's results, writes dialog.ua.

Rosneft's IFRS net profit for shareholders for the first nine months of this year was down 70% year-on-year to 277 billion rubles.

The company's revenue fell by almost 18% to 6.29 trillion rubles. EBITDA also showed a significant decline: minus 29%, down to 1.64 trillion rubles.

Free cash flow after adjustments fell by almost half, decreasing by 45% to 591 billion rubles. Capital expenditures, on the other hand, rose by 6%, reaching 1.11 trillion rubles.

What pressured the results

Rosneft listed several factors that complicated the financial picture:

- high key rate of the Central Bank of Russia, which made loans more expensive;

- decline in world oil prices and growth in global supply;

- strengthening of the ruble exchange rate, due to which export revenues in national currency decreased significantly.

The refinery's crude oil processing index amounted to 57.7 million tons. The company said that the drop in refining volumes was due to "repair work" as well as "optimization of loading" of oil refineries.

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