Against the background of falling oil prices, Rosneft has significantly reduced its key financial figures for the first quarter. The company received a net loss of 156 billion rubles against profit in the same amount a year earlier. The company’s EBITDA year-on-year fell by 23.6% to 309 billion roubles According to the head of “Rosneft” Igor Sechin, 2020 could be a turning point for global oil and gas industry due to falling demand due to the coronavirus. Experts believe that the financial performance of companies, including Rosneft, will continue to deteriorate.”Rosneft” following the results of the first quarter was a loss of 156 billion rubles, said in its report under IFRS. In the first quarter of 2019 exactly the same amount was profit. This very weak result, the company explains the decrease in operating profit (-64,8% compared to the fourth quarter of 2019), as well as the negative effect of exchange rate differences. Revenue down 15% from the same period of 2019, to 1.76 trillion rubles. “mainly as a result of the decline in world oil prices (-23,6%), partially offset by increased sales volumes”.EBITDA “Rosneft” has decreased by 23.6% to 309 billion roubles, the oil company says that this result is mainly due to the decline in oil prices, payment of the damper to RUB 56 billion in the budget, and also to the negative effect of export duties ‘ lag in 98 billion rubles On the background of deteriorating macroeconomic environment, “Rosneft” for the accounting period reduced capex compared to the first quarter of 2019 13.6%, to 185 billion rubles.”2020 could be a turning point for global oil and gas industry— quoted in the message “Rosneft” by its head Igor Sechin.— As a result of the global pandemic of the virus COVID-19 oil demand has undergone unprecedented decline, leading to a significant drop in energy prices”.According to him, “despite the deterioration in the macroeconomic environment, we continue to reduce debt burden and to channel cash to shareholders”. In April, the Board of Directors of Rosneft has recommended dividend at the end of 2019 in the amount of RUB of 18.07 per share (more than 191 billion roubles). Free cash flow of Rosneft decreased by 22%, to 219 billion rubles EBITDA Drop by 37% by the fourth quarter of 2019 due to the fall in oil prices: over the same period, the price of Urals oil fell by 22%, in the minus also can play lag in the calculation of export duties (it “lags” for a month), says Dmitry marinchenko from Fitch. The foreign exchange loss associated with the revaluation of the debt due to the fall of the ruble — “Rosneft” a significant portion of the debt portfolio in foreign currency, while depreciation of the company’s debt in rubles is growing, but revenues in rubles is also increasing, he said. In the first quarter, the average price of oil was still quite high (Urals — $46), the second quarter results will be much worse — and “Dewy��FTI”, and other companies, believes Mr. marinchenko.In the first quarter oil company produced 57 million tons of oil is 2.2% lower than a year earlier, which explains the implementation of the transaction OPEC+. Rosneft has also reduced the processing volume by almost 7% to 28.7 million tonnes of oil, sales of petroleum products — by 2.9%, to 28.4 million tonnes. On may 1, the company began to reduce production in the framework of the new deal OPEC+.Read dalelange Rosneft announced the closing of the transaction for the transfer of the government shares in assets of the Venezuelan Petromonagas, Petroperija, Boqueron, Petromiranda and Petrovictoria, in return she was to receive 9.6 percent of its own shares from its main shareholder Rosneftegaz.Chronicle of the conquest of the oil market to further Rosiekitty Dmitry Kozlov
