Rosneft's net income grew by more than 9% in the first half of 2019, compared to the same period last year, the company reported on Wednesday.
The company's net income jumped year on year to RUB 325 billion ($4.91 billion), and by 1.5 times quarter on quarter to RUB 194 billion ($1.93 billion), the company said.
The net income increase was due to the reduction of financial debt and trading liabilities by more than RUB 800 billion ($12.09 billion) since the beginning of 2019, the statement said.
Rosneft's first half 2019 earnings before interest and taxes (EBITDA) saw a growth rate of 11.9% to RUB 1,063 billion ($16.07 billion) mainly driven by positive crude oil price dynamics in Ruble terms.
Commenting on the second quarter results, Rosneft’s Chairman and Chief Executive Officer, Igor Sechin, said the company continued to execute strategic efficiency growth objectives of existing assets and debt reduction over this period but faced many challenges in achieving its targets.
"Despite efforts of the management to achieve those goals, the influence of external one-offs should be noted, which limited the capacity to grow production in 2Q 2019. First of all, these factors include limiting crude oil intake by the Transneft pipeline system due to the pollution caused by circumstances beyond the Company’s control as well as a decrease in crude oil production within the OPEC+ Agreement," he added.
By Gulsen Cagatay