Rosneft swings to a loss of £630 million in the fiscal third quarter

Written by: Wajeeh Khan
November 13, 2020
  • Rosneft swings to a loss of £630 million in the fiscal third quarter.
  • The Russian company's EBITDA jumps to £3.58 billion in Q3.
  • Rosneft is more than 10% down year to date in the stock market.

Rosneft Oil Co. (MCX: ROSN) said on Friday that it concluded the fiscal third quarter in loss, but underlying earnings posted an over 100% growth versus the prior quarter as oil prices recovered sharply in recent months after a historic low earlier this year due to the Coronavirus pandemic that has so far infected more than 53 million people worldwide and caused over 1.3 million deaths.

Shares of the company are currently less than 1% down in the stock market on Friday. On a year to date basis, Rosneft Oil Co. is now more than 10% down after recovering 70% since its low in March, when the COVID-19 crisis weighed heavily on the global oil prices. Confused about choosing a reliable stockbroker to trade online? Here’s a list of the top few to get selection easier for you.

Rosneft’s EBITDA jumps to £3.58 billion in Q3

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Rosneft said that its net loss came in at £630 million in the quarter that concluded on 30th September. In comparison, it had posted £420 million of profit in fiscal Q2. Rosneft attributed its dovish performance in the recent quarter to non-monetary factors but refrained from giving a detailed insight into these factors.  

The Moscow-based company said earlier this week that its mega-project in the Arctic, Vostok Oil, will include a natural gas liquefaction plant.

The Russian company, however, said that its EBITDA (earnings before interest, taxes, depreciation and amortization) in the fiscal third quarter remained robust posting an increase from £1.66 billion to £3.58 billion. Rosneft said that the increase in EBITDA was primarily due to a sharp increase in global oil price during the period from July to September, that resulted in a 38% growth in Urals benchmark to a price per barrel of £32.66.

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CEO Igor Sechin’s comments on Friday

CEO Igor Sechin of Rosneft commented on the financial report on Friday and said:

“Significant achievements of the third quarter include a reduction of upstream operating cost to £2.13 per barrel of oil equivalent and a decrease in interest costs by 24% in dollar terms year on year.”

In an announcement in late March, Rosneft said that it had pulled out of its operations in Venezuela in a bid to avoid U.S. sanctions.

At the time of writing, Rosneft Oil Co. is valued at £43 billion and has a price to earnings ratio of 15.96.