Already a Bloomberg.com user?
Sign in with the same account.
OAO Rosneft, Russia’s largest oil producer, said fourth-quarter earnings fell 69 percent following a charge related to unproven reserves.
Net income declined to 57 billion rubles ($1.9 billion) from 181 billion rubles in the third quarter, the Moscow-based company said today in a regulatory filing. That missed the 77.2 billion-ruble average adjusted forecast from 10 analysts surveyed by Bloomberg.
Rosneft will become the world’s largest publicly traded crude oil producer after a $55 billion deal to buy Russia’s third-largest oil company, TNK-BP, which is expected to close in the first half. Rosneft is the first Russian oil company to report earnings for the fourth quarter.
“The miss was mostly due to higher costs including operating expenses,” Ildar Davletshin, an oil and gas analyst at Renaissance Capital, said by e-mail from Moscow.
The shares fell 1.3 percent to 262.89 rubles as of 5:30 p.m. in Moscow.
Profit fell as a result of an impairment of unproved reserves and lower foreign exchange gain than the previous quarter. Earnings in the previous three months were also buoyed by a gain on the acquisition of gas company OOO Itera.
Revenue fell 2.3 percent to 790 billion rubles from the third quarter because of a deterioration in product markets and lower sales, Rosneft said.
Oil and gas production rose 3.4 percent to 2.82 million barrels a day, according to the statement.
Net debt rose to 581 billion rubles last year, Rosneft said.
Rosneft said it’s been granted 12 offshore licenses by the Russian government.
To contact the reporter on this story: Stephen Bierman in Moscow at email@example.com
To contact the editor responsible for this story: Will Kennedy at firstname.lastname@example.org