Rosneft sees Q1 net income down 75% on crude price weakness

Rosneft has posted a 75% slide in its first-quarter net income of 14bn rubles, from income of 56bn rubles a year earlier, citing lower crude-oil prices in ruble terms.

Rosneft, world's largest listed crude producer, recorded total revenue and equity share in profits of associates and joint ventures of 1.048tn rubles, down 20.7% from 1.321tn rubles.

It said the fall in revenue was due to decreased crude-oil prices by 13.2% in ruble terms.

"The company efficiently used high-margin trading channels for crude oil and oil products and managed to compensate negative effect from price decline and fully met the obligations under long-term oil supply agreements and the obligations for petroleum products sales on the domestic market," Rosneft said in a statement.

"In Q1 2016 gas sales increased by 13% compared to Q4 2015 thanks to efficient management of contracts portfolio which compensated for negative effect from deteriorating market conditions," it said.

Rosneft added EBITDA fell 14.4% to 273bn rubles, from 319bn rubles, due to negative effects of external factors such as the crude-oil price decline and higher tax burden effect that were not sufficiently offset by ruble depreciation.