Category: Energy

Source: Rosneft – An important disclaimer is at the bottom of this article.

• 9M 2024 HYDROCARBON PRODUCTION AMOUNTED TO 193.4 MLN TOE
• 9M 2024 LIQUID HYDROCARBON PRODUCTION EQUALED 138.3 MLN TONS
• 9M 2024 GAS PRODUCTION TOTALLED 67.0 BCM 
• 9M 2024 EBITDA AMOUNTED TO RUB 2,321 BLN
• 9M 2024 NET INCOME ATTRIBUTABLE TO ROSNEFT SHAREHOLDERS AMOUNTED TO RUB 926 BLN
• 9M 2024 FREE CASH FLOW AMOUNTED TO RUB 1,075 BLN
• 9M 2024 UNIT LIFTING COSTS AMOUNTED TO $2.8/BOE

Rosneft Oil Company (hereinafter – Rosneft, the Company) announces its results for 9M 2024, prepared in accordance with the International Financial Reporting Standards (IFRS).

	9M 2024	9M 2023	% change
	RUB bln (except for %)
Revenues from sales and equity share in profits of associates and joint ventures	7,645	6,612	15.6%
EBITDA	2,321	2,403	(3.4)%
Net income attributable to Rosneft shareholders	926	1,076*	(13.9)%
CAPEX	1,052	909	15.7%
Adjusted free cash flow	1,075	1,157	(7.1)%

* Revised due to completion of the 2022–2023 acquisition price allocation in 2023.

Igor Sechin, Chairman of the Management Board and Chief Executive Officer of Rosneft said:

“Due to the Russian Government’s decisions to cap oil production in addition to the quotas set by the OPEC+ agreement, Rosneft’s operating performance in the reporting period was under pressure. In this context, the Company has been taking additional steps to ensure stable financial results as well as aimed at achieving a sustainable corporate business model.

The key rate increase resulted in the reduced efficiency of refinery modernization projects that require external financing. The outstripping growth of tariffs of natural monopolies and incremental anti-terrorist security costs exerted additional pressure on the refineries’ performance. In order to protect the shareholders’ interests and avoid losses, Rosneft has been considering the need to suspend refinery modernization projects. At the same time, meeting the domestic demand for quality petroleum products remains a priority.

Continuous changes in the taxation system have a negative impact on the oil industry. In particular, in the reporting period, net income attributable to Rosneft’s shareholders was negatively affected by the income tax rate increase to 25% from 2025. In accordance with IFRS, this resulted in a restatement of a deferred tax with a negative income effect of RUB 0.2 trillion.

However, efficient execution and improved development parameters of a number of our key projects afforded an opportunity to dramatically reduce the negative effect of these changes on our shareholders.

The reported net income attributable to Rosneft shareholders was also negatively affected by the exchange rate revaluation of foreign currency liabilities due to the weakening of the national currency. For example, during the third quarter, the ruble weakened against the yuan by more than 10%.

It is worth pointing out that net income attributable to shareholders adjusted for the non-cash effects mentioned above remained mainly unchanged year-on-year.

Shareholders’ interests remain one of our key priorities. On November 8, the Board of Directors recommended an interim dividend of RUB 36.47 per share which resulted in the semi-annual dividend yield of 7.6%. In full compliance with the corporate dividend policy, a total of RUB 386.5 bln or 50% of H1 2024 net income is recommended to be distributed as dividends.

In the context of high stock market volatility and taking into account our shareholders’ rights and interests, the Company has resumed its Share Buyback Program previously approved by the Board of Directors.”

ESG

In the reporting period, the Company continued to implement measures to achieve sustainable development goals under the ‘Rosneft-2030: Reliable Energy and Global Energy Transition’ strategy.

Rosneft applies advanced technologies and state-of-the-art production methods to create a safe working environment and minimize the risk of occupational injuries and occupational illness. In 9M 2024, the Lost Workday Injury Severity (LWIS) improved by 33%.

In 9M 2024, there were no gas, oil and water shows (release of oil, gas or water to the surface) during drilling operations at Company facilities. As part of efforts to minimize oil and petroleum product spills, measures were taken to replace field pipelines.

In 9M 2024, as part of the corporate program to eliminate the environmental legacy, the area of contaminated land reduced by 7% and the volume of oily waste – by 12%.

In October 2024, Rosneft entered the first quartile in the ESG transparency ranking of the Expert RA credit rating agency. The ranking was compiled based on the analysis of public information on the sustainability performance of 124 Russian companies in four main blocks: environment, society, corporate governance and non-financial reporting standards.

Operating performance

Exploration and production

In 9M 2024, Rosneft liquid hydrocarbons production amounted to 138.3 mln tons (3,753 th. bpd). The indicator performance was primarily driven by the production cap in compliance with the decisions of the Russian Government.

9M 2024 gas production amounted to 67.0 bcm (1,488 th. boepd). Greenfield projects in the Yamal-Nenets Autonomous District commissioned in 2022 account for over a third of the Company’s gas production.

As a result, the Company’s 9M 2024 hydrocarbon production amounted to 193.4 mln toe (5,241 th. boepd).

9M 2024 production drilling footage exceeded 9.1 mln meters. Rosneft commissioned over 2.2 th. new wells, 71% of which were horizontal.

In 9M 2024, Rosneft conducted 1.2 th. km of 2D seismic and 4.8 th. sq. km of 3D seismic onshore Russia. The Company completed testing of 31 exploratory wells with a success rate of 84%.

Vostok Oil Project

As part of the Vostok Oil project, in 9M 2024 the Company completed 0.7 th. linear km of 2D seismic and 0.6 th. sq. km of 3D seismic. Rosneft carried out successful testing of 3 wells with 3 more wells being drilled and 1 more well being tested.

Pilot development of the Payakha, the Ichemminskoye and the Baikalovskoye fields is in progress: production drilling footage amounted to 64 th. meters, while 10 production wells were completed in 9M 2024.

Drilling and testing of another high-tech well with the horizontal section of 1,000 meters and 7-stage hydraulic fracturing at the Payakha field resulted in a stable oil flow, which confirms the resource potential of the development targets.

Work is underway at the ‘Vankor – Payakha – Sever Bay’ trunk oil pipeline. Taking into account local climate patters, preparatory works for pipe laying were carried out during the summer period: more than 24 thousand piles were manufactured and prepared for mounting, over 200 km of the pipeline was welded.

Construction of logistics infrastructure, building of hydraulic structures, shore reinforcement, expansion of coastal and berthing infrastructure is underway.

Refining

9M 2024 refining volume in Russia amounted to 62.6 mln tons.

The Company has been consistently developing domestic technologies and import substitution. In particular, Rosneft provides Company refineries with proprietary catalysts, which are essential for production of high-quality motor fuel. In 9M 2024, Rosneft produced 1,810 tons of catalysts for hydrotreatment of diesel fuel and gasoline fractions, as well as protective layer catalysts. Rosneft subsidiaries also produced over 133 tons of gasoline reforming catalysts and 272 tons of catalysts for hydrogen production, petrochemicals and adsorbents. 1,002 tons of coked catalysts for hydrotreatment of diesel fuel were regenerated.

Sustainable supply of high-quality motor fuel to Russian consumers is one of Rosneft’s key priorities. In 9M 2024, the Company sold 32.9 mln tons of petroleum products on the domestic market, including 9.9 mln tons of gasoline and 13.5 mln tons of diesel fuel.

The Company is an active participant of trading activities at the St. Petersburg International Mercantile Exchange (SPIMEX). In 9M 2024, Rosneft sold 7.3 mln tons of gasoline and diesel fuel on the exchange, which is twice the required volume. The Company’s share in the total volume of exchange sales of gasoline and diesel fuel amounted to 37%.

Financial performance

Operating performance and the current macroeconomic environment combined with management decisions determined the trend of the Company’s key financial indicators.

In 9M 2024, the Company’s revenue¹ amounted to RUB 7,645 bln, representing an increase of 15.6% year-on-year on the back of higher oil prices. EBITDA reached RUB 2,321 bln, and the EBITDA margin amounted to 30%.

In 9M 2024, the unit lifting costs amounted to $2.8/boe.

9M 2024 net income attributable to Rosneft shareholders amounted to RUB 926 bln, which is 13.9% lower year-on-year driven by lower EBITDA, and higher debt financing rates, as well as non-cash factors, including the exchange rate revaluation of foreign currency liabilities and the effect of changes in the income tax rate.

9M 2024 capital expenditure amounted to RUB 1,052 bln, which was 15.7% higher year-on-year due to the scheduled implementation of the Company’s investment program. At the same time, Rosneft’s free cash flow² in the reporting period reached RUB 1,075 bln.

The net debt/EBITDA ratio at the end of September 2024 amounted to 1.2x. The indicator growth was due to payment of final dividends of RUB 307 bln for 2023, as well as depreciation of the national currency.

¹ Includes revenues from sales and equity share in profits of affiliates and joint ventures
² Adjustment for prepayments under long-term oil supply contracts, including accrued interest payments thereon, net change in operations of subsidiary banks, and operations with trading securities.

Department of Information and Advertising
Rosneft Oil Company
November 29, 2024

These materials contain statements regarding future events and expectations that are forward-looking estimates. Any statement in these materials that is not historical information is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by these forward-looking statements. We assume no obligation to adjust the data contained herein to reflect actual results, changes in underlying assumptions or factors affecting the forward-looking statements.

Please note; this information is the raw content received directly from the information source. This is exactly what the source claims and does not necessarily reflect the position of MIL-OSI or its clients.

Source: Rosneft – An important disclaimer is at the bottom of this article.

“In view of unprecedented amount of coverage in foreign media alleging imminent consolidation of assets in the Russian oil industry with a direct hint on Rosneft’s intention to take over the main players in the domestic oil domain, we believe it necessary to bring a message forward.

Your efforts have been a complete success. Igor Sechin’s insidious intentions to take over the assets the Company has not any need for have been thwarted solely by your efforts. There is a small problem though, with the alleged intentions having nothing to do with reality and not following any reasonable business logic, but them being, according to the vocabulary of some well-known authorities, an attempt to “divert attention to a false flag subject” from “eligible subject”, apparently known to you – quite likely a manifestation of an alternative to “Evil Sechin”.

Should the Plan B come to fruition, it would be desirable to consider a possibility of compensating the moral damage to the unfortunate victims of self-serving scheming on behalf of the players in this exciting PR campaign.

In God we trust”.

Please note; this information is the raw content received directly from the information source. This is exactly what the source claims and does not necessarily reflect the position of MIL-OSI or its clients.

Source: Rosneft – An important disclaimer is at the bottom of this article.

Russia, Venezuela and Iran are key players in the energy market and global energy security directly depends on their supply, Rosneft CEO Igor Sechin said at the Energy Panel at the XXVIII St. Petersburg International Economic Forum.

“Russia, Venezuela and Iran are key players in the energy market, and global energy security directly depends on their supply. These countries account for one-third of the global liquid hydrocarbons reserves and 15% of the global production. Without their resource base, it is impossible to facilitate the transition to the new landscape of the global energy industry,” the CEO said. 

At the same time, according to Sechin, Russia’s real contribution to the Global Economy is proportional to its share in the global resource balance. 

“Our country’s share in global hydrocarbon exports is about 15%. However, the Russian resource base is not only hydrocarbons, but also metals. Russia’s share in gold mining is about 10%, and in the mining of such metals as high-grade nickel and palladium it reaches 20% and 40% respectively,” the CEO said.

Rosneft CEO also noted that Russia has about 10% of the world’s reserves of rare-earth metals, without which it is impossible to develop modern technologies.

Department of Information and Advertising
Rosneft Oil Company
June 21, 2025

Please note; this information is the raw content received directly from the information source. This is exactly what the source claims and does not necessarily reflect the position of MIL-OSI or its clients.

Source: Rosneft – An important disclaimer is at the bottom of this article.

The European Union seeks to increase the efficiency of oil purchases from Russia when it tries to push the reduction of the price cap on Russian oil, Rosneft CEO Igor Sechin said at the Energy Panel at the XXVIII St. Petersburg International Economic Forum.

During his keynote speech, the Company’s CEO noted that the European Union continues to attempt forcing down the price cap on Russian oil to $45 per barrel.

“I believe that the real purpose of this is the EU’s desire to increase the efficiency of its purchasing from Russia, not to reduce Russian budget revenues, as was publicly declared. Figures confirm this: according to Western experts, since the beginning of 2023, Europe has purchased more than 20 billion euros worth of Russian oil, thus becoming the fourth largest buyer,” Sechin said.

However, he believes it is obvious that the U.S. will not agree to lower the price ceiling because it would negatively affect the profitability of U.S. oil exports.

The CEO of Rosneft separately noted the situation in Saudi Arabia, saying that imports of Russian dark oil products after the start of sanctions restrictions allow the kingdom to effectively meet the feedstock needs of its energy industry without affecting oil exports. The volume of fuel oil and vacuum gasoil supplied to the country from Russia over the past 12 months is more than six times higher than four years ago.

According to Sechin, Indian refiners are using a similar approach today. India, the second-largest buyer of Russian oil, has nearly doubled its exports of oil products to Europe over the past three years.

“Many producing countries need an oil price much higher than current levels to balance their budgets. Thus, according to IMF calculations, in 2025 this price is more than $90 per barrel for Saudi Arabia’s budget,” Sechin summarized.

Department of Information and Advertising
Rosneft Oil Company
June 21, 2025

Please note; this information is the raw content received directly from the information source. This is exactly what the source claims and does not necessarily reflect the position of MIL-OSI or its clients.

Source: Rosneft – An important disclaimer is at the bottom of this article.

Rosneft CEO Igor Sechin called decision by OPEC+ to forcefully increase oil production justified and far-sighted.

During his keynote speech at the Energy Panel of the XXVIII St. Petersburg International Economic Forum, Sechin noted that the announced increase in production since May this year is three times higher than the alliance’s original plan. In addition, the entire OPEC+ production increase could be pushed back a year ahead of plan.

“The decision of OPEC leaders to boost production appears today a very forward-looking and, a justified one from the market standpoint, given the consumers’ interest in light of uncertainty pertaining to the scope of the Iran-Israel conflict,” the CEO said.

At the same time, Sechin noted, “Despite the announced production growth, there can be no question of an oil excess in the market in the long run” as “world oil reserves are now at their lowest levels in five years”.

“Low oil prices suit consumers in the US, where the inflation-adjusted price of gasoline has already returned to 2019 levels. It is no coincidence that this is happening against the backdrop of the White House’s intensified Middle East policy and the conclusion of a number of agreements with key countries in the region”, – said the CEO of Rosneft.

Department of Information and Advertising
Rosneft Oil Company
June 21, 2025

Please note; this information is the raw content received directly from the information source. This is exactly what the source claims and does not necessarily reflect the position of MIL-OSI or its clients.

Source: Rosneft – An important disclaimer is at the bottom of this article.

US oil production at current prices has probably reached its peak, Rosneft CEO Igor Sechin said at the Energy Panel of the XXVIII St. Petersburg International Economic Forum.

Delivering a keynote speech, the CEO called the energy policy initially announced by the new US administration promising. However, most of these goals have not yet been achieved: tariff wars have led to a drop in oil prices, while taxes for the oil industry remain at the same level and interest rates have not been reduced. Given this backdrop, the number of active drilling rigs has fallen 9% to 439 over the past two months and oil production growth has stalled. In less than a year, the U.S. Department of Energy has lowered its forecast for U.S. oil production by the end of 2025 by 400 thousand barrels per day.

“At current prices, the USA oil production appears to have peaked,” Sechin said, noting that Diamondback Energy and ConocoPhillips recently voiced this opinion. And Liberty Energy, an oilfield services company founded by U.S. Energy Secretary Chris Wright, expects a significant slowdown in drilling activity in the second half of this year, which should lead to a reduction in the U.S. drilling fleet by about 10% more. “Not surprisingly, against this backdrop, many shale players have already started cutting investments,” said Rosneft’s CEO.

He noted that the sharp drop in oil prices this year has already led to a revision of investment plans. According to the IEA’s latest estimate, this year, for the first time in five years, global investments in oil exploration and production will drop by 6%, while in the U.S. the drop will amount to about 10%.  “I think this is just the beginning,” the CEO of Rosneft remarked.

“The new head of the US Treasury Department, Scott Bessent, has repeatedly stated that the success of Trump’s second presidential term requires oil production growth in the US in the amount of three million barrels per day. This is part of a so-called “3-3-3 Plan” which also envisages cutting the US budget deficit down to 3% of GDP and reaching 3% of GDP increase,” Igor Sechin reminded.

The CEO of the Company also asks the question, what difference does it make for the US market where these barrels will come from? “Quite possibly, those may be barrels produced in OPEC+ countries. Since late last year the alliance has consistently reiterated the need to ramp up production due to changes in consumption,” Sechin said.

The CEO also noted that in addition to the interest of states, the interests of shareholders should be taken into account. Low oil prices in the current period do not allow many companies to maintain the same level of dividend payments and share buybacks, said the CEO of Rosneft. According to Rystad Energy experts, which Sechin cited, if the oil majors maintain their payments to shareholders, they will have to almost completely abandon investments or significantly increase their debt as early as this year.

“The fall in prices has already started to affect the major players. BP and Chevron will reduce share buybacks by almost 60% and 30%, respectively , while Aramco has to build up debt to be able to pay dividends,” the CEO said.

Department of Information and Advertising
Rosneft Oil Company
June 21, 2025

Please note; this information is the raw content received directly from the information source. This is exactly what the source claims and does not necessarily reflect the position of MIL-OSI or its clients.

Source: Rosneft – An important disclaimer is at the bottom of this article.

Lifting subsidies for green energy in the US shows that this country, unlike the European Union, is returning to a pragmatic policy, said Igor Sechin, Chief Executive Officer of Rosneft.

The Company’s CEO noted that in the US, where electricity consumption has returned to growth after a decade of stagnation, the new administration is already revising its energy strategy in favor of traditional sources. For example, President Trump recently signed a series of executive orders aimed at revitalizing the coal industry. Simultaneously with regulations’ mitigation, the US Department of Energy has raised its forecast for US coal production this year by 6%.

“The lifting of “green energy” subsidies in the US shows that unlike the European Union this country is coming back to a pragmatic policy. This has already led to the fact that the cost of electricity in Europe today is 5 times higher than in the US,” the CEO of Rosneft said at the Energy Panel at the XXVIII St. Petersburg International Economic Forum.

Department of Information and Advertising
Rosneft Oil Company
June 21, 2025

Please note; this information is the raw content received directly from the information source. This is exactly what the source claims and does not necessarily reflect the position of MIL-OSI or its clients.

Source: Rosneft – An important disclaimer is at the bottom of this article.

Rosneft and the Ministry of Industry and Trade of the Russian Federation signed a Cooperation Agreement at the XXVIII St. Petersburg International Economic Forum.

The document was signed by Rosneft CEO Igor Sechin and the Minister of Industry and Trade of the Russian Federation Anton Alikhanov.

The Agreement expands the scope of cooperation between the Company and the Ministry and provides for implementation of joint initiatives to develop industrial infrastructure in Russia, including through localization and import substitution of foreign technologies and equipment.

Under the Agreement, the parties will develop cooperation with the aim to support the export of industrial products, provide access to the markets of goods and services, and to carry out foreign trade activities.

Department of Information and Advertising
Rosneft Oil Company
June 20, 2025

These materials contain statements regarding future events and expectations that are forward-looking estimates. Any statement in these materials that is not historical information is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by these forward-looking statements. We assume no obligation to adjust the data contained herein to reflect actual results, changes in underlying assumptions or factors affecting the forward-looking statements.

Please note; this information is the raw content received directly from the information source. This is exactly what the source claims and does not reflect the position of MIL-OSI or its clients.

Source: Rosneft – An important disclaimer is at the bottom of this article.

At the XXVIII St. Petersburg International Economic Forum, Rosneft concluded a trilateral agreement of cooperation in HR training with Management Development Institute (Gurgaon, Republic of India) and St. Petersburg State University (St. Petersburg State University).

The document was signed by Igor Sechin, Chief Executive Officer of Rosneft, Nikolai Kropachev, Rector of St. Petersburg State University, and Professor Arvind Sakhai, Director of the Management Development Institute.

The agreement provides for training Rosneft employees on joint programs of the St. Petersburg State University Graduate School of Management and the Gurgaon Management Development Institute, as well as exchanging knowledge and experience in the area of technology development in the oil and gas sector, improving the efficiency of operational management, logistics, artificial intelligence and digitalization, etc.

Besides, there will be visits to Indian companies organized for the Company employees as part of joint educational programs to study current practices in the oil and gas sector.

The implementation of this Agreement will facilitate developing a long-term mutually beneficial partnership between Rosneft, St. Petersburg State University and the Gurgaon Institute of Management Development, as well as addressing complex business objectives of the Company.

Department of Information and Advertising
Rosneft Oil Company
June 20, 2025

These materials contain statements regarding future events and expectations that are forward-looking estimates. Any statement in these materials that is not historical information is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by these forward-looking statements. We assume no obligation to adjust the data contained herein to reflect actual results, changes in underlying assumptions or factors affecting the forward-looking statements.

Please note; this information is the raw content received directly from the information source. This is exactly what the source claims and does not reflect the position of MIL-OSI or its clients.

Source: Rosneft – An important disclaimer is at the bottom of this article.

At the XXVIII St. Petersburg International Economic Forum, Rosneft and the Federal Service for Supervision of Natural Resources (Rosprirodnadzor) signed a cooperation agreement, which provides for consulting and expert support by the Service to the Company in the implementation of its investment projects.

The agreement was signed by Igor Sechin, Chief Executive Officer of Rosneft, and Svetlana Radionova, Head of the Federal Service for Supervision of Natural Resources.

The agreement will ensure timely compliance with the requirements of ecological safety and environmental protection while implementing investment projects at the stages of design, upgrade, reconstruction and commissioning preparation.

An important area of work will be joint elaboration of proposals to improve Russian legislation in the area of environmental protection activities.

The agreement envisages organizing joint events, such as scientific and practical seminars, creating working groups, as well as arranging advisory and working meetings.

Department of Information and Advertising
Rosneft Oil Company
June 20, 2025

These materials contain statements regarding future events and expectations that are forward-looking estimates. Any statement in these materials that is not historical information is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by these forward-looking statements. We assume no obligation to adjust the data contained herein to reflect actual results, changes in underlying assumptions or factors affecting the forward-looking statements.

Please note; this information is the raw content received directly from the information source. This is exactly what the source claims and does not reflect the position of MIL-OSI or its clients.