KREMLIN-controlled energy producer Rosneft yesterday posted soaring profits, just a week after announcing its $55bn (£34bn) acquisition of Anglo-Russian oil firm TNK-BP.
Profit for the three months to September came in at a five-year high of 181bn rubles (£3.59bn), up from a loss of 8bn rubles in the previous quarter, thanks to higher oil prices, greater sales volumes and better cost efficiencies.
Free cash flow for the energy firm jumped 112 per cent to 53bn rubles over the third quarter, as it bolstered its finances ahead of the TNK-BP takeover.
The improvement in the oil markets boosted Rosneft’s third quarter revenues by 11.7 per cent to hit 802bn rubles.
Rosneft president Igor Sechin said the results were the start of a transformational programme to cut costs within the company, “which have already yielded strong results in production and sales”.
“This allows us to improve the company’s financial standing and build stronger foundation for efficient implementation of our strategic projects,” Sechin added.
Buying TNK-BP from its current owners BP and AAR will help Rosneft become the world’s largest listed oil company, with daily output of 4.6m barrels in oil-equivalent terms, once the deal closes in the next six months.