Rosneft Q2 profit slides but beats estimates

Rosneft posted a drop in second-quarter net profit on Monday amid weaker oil prices, but the figures were still ahead of analysts’ expectations.

The state-owned Russian oil company said net profit dropped 34% to 89bn roubles, but this was ahead of forecasts of 85bn roubles. Revenue was up 17.6% from the first quarter to 1.23bn roubles. Revenues in the first half, however, were down 14.2% to 2.28bn roubles.

For the first half, net income was down 46% to 103bn roubles as oil prices slumped.

Chief executive officer Igor Sechin said: “With remaining volatility, the commodity markets showed some improvements in 2Q 2016, and average rouble crude oil price went up by 20% against 1Q 2016. The main strategic priorities in such difficult conditions remain control over operating and SG&A costs and raising investment program quality. I am glad to note that the dynamic of operating costs turned to be significantly lower than that of the consumer price index.

“Rosneft keeps improving its leading position among global and Russian peers even in difficult market conditions – this highlights once again the quality of business and the Company’s high efficiency.”

At 1530 BST, shares were up 2.5% to 339.25 roubles.