Russian oil giant Rosneft saw its net income decrease by 77.8% and revenue decline by 51.3% in the second quarter of 2020, from the same quarter of last year, according to its financial results statement released on Friday.
The company's net income attributable to Rosneft shareholders in the April-June period of 2020 came at 43 billion rubles ($590 million), down from 194 billion rubles ($2.66 billion) in the same period of 2019.
The firm had a revenue of approximately 1.04 trillion rubles ($14.22 billion) in the second quarter of this year, which was down from 2.135 trillion rubles ($29.23 billion) the same quarter of last year.
“The reporting period was characterized by unprecedented macroeconomic conditions including a sharp reduction of prices due to failing demand on the back of COVID-19 pandemic and lower production volumes due to realization of the new OPEC+ agreement,' Rosneft Chairman and CEO Igor Sechin said in the statement.
'Crude oil and gas production as well as refining volumes came under severe pressure in 2Q 2020 which led to the deterioration of financial metrics,' he added.
In the first half of 2020, Rosneft's liquids production amounted to 4.34 million barrels per day -- a 7.3% decrease year-on-year.
The company has a net loss of 113 billion rubles ($1.55 billion) in the first six month of 2020, while it had a net income of 325 billion rubles ($4.45 billion) in the same period of 2019.
For the January-June period of this year, revenue totaled around 2.8 trillion rubles ($38.39 billion), which was down 33.4% from 4.2 trillion rubles ($57.66 billion) from the same period of last year.
1 Russian ruble was equal to US$0.014 as of Aug. 14, 2020 0730 GMT
By Ovunc Kutlu