Group profits, about a fifth of which are owned by BP, were boosted by a 20% annual increase in oil prices, supported by a global agreement on production cuts.
The deal was also part of the reason for a decline in Rosneft’s first-quarter oil and gas condensate production to 3.75 million barrels per day (bpd) from 4.64 million bpd it a year ago, although production increased slightly by 1% compared to the previous quarter.
Production has also come under pressure by Rosneft’s sale of certain brownfield or mature assets in southern Russia, as well as underperforming brownfields elsewhere, in order to raise capital to develop its giant Vostok project. Oil in the north.
“We believe Rosneft’s catalysts are linked to the development of Vostok Oil, as well as significant movements in commodity prices,” brokerage Sova Capital said earlier this week.
Rosneft’s revenue for the January-March quarter edged down 1.2 percent to 1.7 trillion rubles, while earnings before interest, taxes, depreciation and amortization (EBITDA) rose to 445 billion rubles, up 44% year on year.