Rosneft back in profit in second quarter, oil output on rise in August
MOSCOW (Reuters) - Russia's largest oil producer Rosneft made a second-quarter profit of 43 billion roubles after reporting a loss in the previous three months thanks to a rise in oil prices, it said on Friday. Rosneft, headed by Igor Sechin, a long-standing ally of President Vladimir Putin, is the first big Russian oil company to report financial results for the second quarter, when oil prices started to rebound after hitting a 21-year low in April. The oil market, under pressure from overproduction and the fallout from the coronavirus crisis, has been on a recovery path thanks to a global deal between OPEC and other leading oil producers, including Russia, to cut oil production
MOSCOW (Reuters) - Russia's largest oil producer Rosneft
Rosneft, headed by Igor Sechin, a long-standing ally of President Vladimir Putin, is the first big Russian oil company to report financial results for the second quarter, when oil prices started to rebound after hitting a 21-year low in April.
The oil market, under pressure from overproduction and the fallout from the coronavirus crisis, has been on a recovery path thanks to a global deal between OPEC and other leading oil producers, including Russia, to cut oil production.
The company, which accounts for more than 40% of Russia's total oil output, said it produced 4.04 million barrels of oil per day (bpd) in the second quarter, down 13% from the previous quarter, due to the global output reduction deal.
Didier Casimiro, Rosneft's first vice president, told investors on a call that the company had increased daily oil production in early August by around 6% from July, in line with the easing of output curbs by the OPEC+ group.
Rosneft expects the company's, and Russia's overall, oil production to remain stable in August-December.
A company official also said Rosneft's capital expenditure may increase to 1 trillion roubles in 2021 from a downwardly revised 750 billion roubles in 2020.
BACK TO PROFIT
Rosneft gave a dollar figure of $700 million for its April-June earnings, saying the conversion was calculated using average monthly Central Bank of Russia exchange rates for the reporting period.
The company, in which BP
"As prices for crude oil and refined products had improved, our financial metrics demonstrated a positive dynamic in the course of 2Q 2020. This provides us confidence that the company's financial results will stage a recovery in the upcoming periods," Sechin said in a statement.
In the second quarter of 2019, Rosneft had reported a net profit of 194 billion roubles.
(Reporting by Maria Kiselyova and Vladimir Soldatkin; Writing by Alexander Marrow; Editing by Jan Harvey and Jane Merriman and Kirsten Donovan)
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