The company also had to reduce production in order to comply with the coordinated production agreement with some other producers.
–
Russia is a member of the OPEC + group, which includes some other major producers in addition to the Organization of the Petroleum Exporting Countries (OPEC). The aim of their agreement on the coordinated reduction of mining is to achieve a balance between supply and demand in the market.
–
Rosneft extracted 3.2 percent less from July to September compared to the previous quarter, averaging 3.91 million barrels per day. The agreement helped raise oil prices by 37.8 percent in the quarter, and revenues rose 38.5 percent to 1.44 trillion rubles (CZK 418 billion).
–
However, earnings before interest, taxes, depreciation and amortization (EBITDA) more than doubled from the previous quarter to 366 billion rubles. Higher oil prices and a lower negative impact of the reverse excise duty contributed to this.
–
“In the period under review, the company demonstrated its ability to work successfully in difficult conditions of limited oil production and relatively low prices,” commented Igor Sečin, CEO.
–
He noted that EBITDA was also better than in the first quarter, when the macroeconomic environment was not yet under pressure from coronavirus restrictions. He added that the company managed to reduce mining costs and, in a year-on-year comparison, also reduce interest costs in dollars.
–
Rosneft accounts for more than 40 percent of total oil production in Russia, last year the company extracted 4.7 million barrels a day. This year, due to an agreement to reduce supplies, Rosneft expects production to fall by about ten percent.
–
The main shareholder of Rosneft is the Russian state holding company Rosneftegaz with a share of 40.4 percent. The British oil company BP owns 19.75 percent of the shares and the Qatari fund QH Oil Investments 18.93 percent.
—
