Rosneft’s profits tumble but margins beat rival
RUSSIA’S largest oil producer Rosneft yesterday reported net profits of $1.61bn (£1bn) for the second quarter of 2009, missing the average $1.72bn forecast in a poll of analysts.
The company said the drop in net income, from $4.31bn a year ago and $2.06bn in the first quarter, was mainly due to the effective income tax rate rising to 19.9 per cent from 5.7 per cent, and a foreign exchange loss of $391m.
But it beat nearest rival LUKOIL on margins in the second quarter, despite the 63 per cent drop in net profit
“Costs are under more severe control at Rosneft than at LUKOIL,” said Raiffeisenbank oil and gas analyst Anna Yudina.
VTB Capital analyst Svetlana Grizan said Rosneft was more efficient than LUKOIL in terms of oil production and refining costs.
“LUKOIL had inflated costs and revenues due to more active trading operations,” she said in a note to investors.