Page 134 - RusRPTSept23

While Rosneft's revenue for January-June 2023 witnessed a decline of 25.3% compared to the corresponding period last year, amounting to 3.87 trillion rubles, there was a noteworthy uptick of 12.1% in the second quarter, reaching just over 2 trillion rubles. The company attributed this trend to its preference for settlements involving rubles and the national currencies of friendly nations when it comes to international deliveries.
Rosneft's EBITDA for the first half of the year registered a comparatively modest decrease of 5.1%, reaching 1.4 trillion rubles. The company attributed this relatively controlled decrease to factors such as increased product supplies to the eastern markets, enhanced profitability of export sales, and effective cost management, resulting in an EBITDA margin of 36%.
Rosneft's response to Russian sanctions in 2022 was to swiftly pivot its oil and petroleum product supply from the European market to the Asian market. This shift saw China and India emerging as the primary purchasers of Russian oil in the East during 2022. According to Deputy Prime Minister Alexander Novak, China increased its oil purchases from Russia by 28%, amounting to 89mn tonnes, while India's purchases surged by 19 times to 41mn tonnes.
Rosneft's free cash flow for the first half of 2023 surged by 21.9% to 434bn rubles. Concurrently, the ratio of net debt to EBITDA in dollar terms stood at 1.2.
The company's capital expenditures for the initial six months of 2023 surged by 13.7% to 599bn rubles, driven by planned activities within the Exploration and Production segment. Amidst these dynamics, Rosneft's liquid hydrocarbon production for January-June 2023 averaged at 4mn barrels per day, equating to 97mn tonnes, marking a marginal decrease of 2.2% from the previous year.
Rosneft's Chief Executive Officer, Igor Sechin, highlighted the company's financial stability despite market price volatility. He emphasized the focus on cost control and reported that the cost of hydrocarbon production dipped to $2.8 per barrel of oil equivalent (boe) in the second quarter of 2023. However, he also pointed out that the constantly changing tax landscape, encompassing legislative alterations and new initiatives, presented challenges for the company.
Russian oil company Rosneft has taken a first step for constitutionally challenging the German government trusteeship on its German subsidiaries, its lawyers said on August 16. Berlin has announced the extension of its trusteeship for an additional six months. This move comes in the wake of a legal challenge by Rosneft, with the company's legal representatives claiming that their arguments were not adequately heard and their requests for evidence were not properly addressed. In March, a court
RUSSIA Country Report September 2023 www.intellinews.com