Russian oil producer Rosneft nearly tripled its net profit in Q3 2018 to 142 billion rubles (2.13 billion USD) due to output growth and rising crude oil prices.
The company, however, had to allocate 133 billion rubles (2 billion USD) in connection with its refining and distribution activities. The domestic fuel prices in Russia are lagging behind rising crude oil prices, as local companies have also been forced by the authorities to squeeze the politically sensitive retail oil prices.
Despite a large profit surge over the same period in 2017, Rosneft did not surpass analysts’ expectations in the third quarter. Initial projections for net profit amounted to 147 billion rubles.
Rosneft managed to produce about 40% of total oil production in the country and played a key role in relations between Russia and the Organization of Petroleum Exporting Countries (OPEC).
Under the management of the Chief Executive Officer Igor Sechin, Rosneft has made a number of acquisitions that have earned a serious debt for the company.
Rosneft has not announced its net debt in the report, but analysts from the Moscow agency BCS calculate it at 71.7 billion USD. This shows that debt has fallen by 8% over the previous quarter.
Following the introduction of US-imposed sanctions that closed Western stock markets for the company, Rosneft switched to prepaid arrangements with international trading companies like Trafigura.