OAO Rosneft said profit fell 7.4 percent in the first quarter after Russia’s biggest oil producer lost tax benefits at its largest new crude development.
Net income dropped to 112 billion rubles ($3.8 billion) from 121 billion rubles in the year-earlier period, the Moscow- based company said today in a statement. That beat the 88 billion-ruble average estimate of 12 analysts surveyed by Bloomberg.
“The expiration of reduced mineral extraction tax rates and export duties for oil produced at the Vankor field” was behind lower earnings, Rosneft said in the statement. The company lost preferential tax treatment for Vankor last year.
Revenue advanced 27 percent to 748 billion rubles. Russia’s Urals export blend rose 14 percent to average $116.98 a barrel in the first quarter from a year earlier, according to data compiled by Bloomberg.
Net debt grew 66 percent to 527 billion rubles after Rosneft invested in refinery upgrades and oil production projects, according to the statement.
Oil and gas output increased to 2.63 million barrels of oil equivalent a day from 2.56 million barrels a day in the period a year earlier, Rosneft said.
Rosneft switched to International Financial Reporting Standards this year from U.S. Generally Accepted Accounting Principles.
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