Source: Rosneft – An important disclaimer is at the bottom of this article.
- HYDROCARBON PRODUCTION OF 121.6 MLN TOE
- LIQUID HYDROCARBON PRODUCTION OF 89.3 MLN TONS
- GAS PRODUCTION OF 39.3 BCM
- EBITDA OF RUB 1,054 BLN
- NET INCOME ATTRIBUTABLE TO ROSNEFT SHAREHOLDERS OF RUB 245 BLN
- FREE CASH FLOW OF RUB 173 BLN
Rosneft Oil Company (hereinafter – Rosneft, the Company) publishes its results for first half 2025, prepared in accordance with the International Financial Reporting Standards (IFRS).
| |
H1 2025 |
H1 2024 |
% change |
| RUB bln |
| Revenues from sales and equity share in profits of associates and joint ventures |
4,263 |
5,174 |
(17.6)% |
| EBITDA |
1,054 |
1,650 |
(36.1)% |
| Net income attributable to Rosneft shareholders |
245 |
773 |
(68.3)% |
| CAPEX |
769 |
696 |
10.5% |
| Adjusted free cash flow |
173 |
700 |
(75.3)% |
Commenting on the results for the first half of 2025, Igor Sechin, Chairman of the Management Board and Chief Executive Officer of Rosneft noted:
“The first half of this year was characterized by a decline in oil prices primarily due to oil oversupply. The main reason is the active production build-up by OPEC countries, including Saudi Arabia, UAE, Iraq, Kuwait, while production growth is also observed in Brazil and other countries. According to our estimates and expectations of leading energy agencies, the oil market surplus will amount to 2.6 mln bpd in Q4 2025 and 2.2 mln bpd in 2026.
In addition, there was a widening of discounts on Russian crude oil due to tighter EU and US sanction restrictions and a significant ruble strengthening, which impacted the financial results of exporting companies. It should be noted that non-market formation of the national currency rate ultimately leads to non-market non-transparent pricing of oil and petroleum products both domestically and internationally.
Moreover, I would like to note the outstripping growth in natural monopolies tariffs, which is putting additional pressure on the oil industry in the challenging market conditions. There has been indexation of Transneft transportation tariffs for crude oil by 9.9% and oil products by 13.8% and RZhD freight rail transport tariffs by 13.8% since the beginning of the year, as well as indexation of Gazprom’s regulated wholesale gas prices by 10.2% and tariffs for transmission services by 11.6% since July.
Excessive indexation of tariffs regulated by the Russian Government accelerates cost-push inflation, encourages higher prices and is one of the reasons for the slower reduction of the key interest rate. Despite the decisions taken by the Bank of Russia in June-July, the pace of interest rate cut is clearly insufficient.
One of the consequences of a long period of the elevated key rate is the excessive ruble strengthening, which inflicts losses on both the Russian budget and the exporting companies. In addition, the high key rate leads to incremental interest expenses, which harms the financial stability of corporate borrowers, reduces profits and undermines their investment potential.
Under these conditions, Rosneft forms its budget based on realistic assumptions, using an oil price of $45/bbl. We continuously monitor, analyze and rank our portfolio. We are optimizing production and focusing on high-margin projects with a special tax regime, including Vostok Oil and Sakhalin-1, to create a source of dividend payments. At the same time, a number of other companies are paying dividends by raising debt.
For reference. Change in hydrocarbon production by major global oil and gas companies in H1 2025 as compared to H1 2024: bp (-5%), Shell (-4%), Chevron (+1%, including Venezuela), Equinor (+1%, target premium market – Europe), Saudi Aramco (+1%, due to commissioning of spare capacities with pressure on prices and higher debt), ExxonMobil (+13%, with low tax take based on Guyana’s and Permian resource base; target market – USA; taking into account challenges in securing domestic market; company in constant search for resources with projected depletion of the resourece base by 2035).
Despite the negative macroeconomic environment, Rosneft maintains strict adherence to its dividend policy and has been paying dividends without fail since 2000.
In the interests of our shareholders and in full compliance with the dividend policy, in August 2025, Rosneft completed the payment of final dividends approved by the Annual General Meeting of Shareholders. The total dividends for 2024 amounted to RUB 542 bln or RUB 51.15 per share”.
Operating performance
Exploration and production
The Company’s hydrocarbon production in H1 2025 amounted to 121.6 mln toe (4.99 mln boepd), including to 89.3 mln tons (3.67 mln bpd) of oil and 39.3 bcm (1.32 mln boepd) of gas.
Some companies demonstrated growth in hydrocarbon production in the reporting period, but it was ensured by increased production from international projects, including Venezuela, Iraq, Egypt and others. Rosneft, operating under service contracts, does not book reserves and account for commercial oil production.
In H1 2025, production drilling footage was about 6 mln meters, Rosneft commissioned 1.4 th. new wells with horizontal wells accounting for 74% of that amount.
In H1 2025, onshore in the Russian Federation, Rosneft completed 1.2 th. linear km of 2D seismic and 3.2 th. sq. km of 3D seismic works. Company completed testing of 17 exploratory wells with a success rate of 100%.
Vostok Oil Project
As part of the flagship Vostok Oil project, in H1 2025, Company completed 1.2 th. linear km of 2D seismic and 1.5 th. sq. km of 3D seismic works. Testing of 1 well was successfully completed, drilling of 1 well was completed, and construction of 4 prospecting and appraisal wells has begun.
The Company continues pilot development of the Payakhskoye and Ichemminskoye fields: in H1 2025, production drilling footage exceeded 62 th. meters, while 14 production wells were completed. Pilot production is being carried out at the Payakhskoye and Ichemminskoye fields with produced crude oil transported by trucks to the Suzun and Lodochnoye fields.
Work is underway at the ‘Vankor – Payakha – Sever Bay’ trunk oil pipeline. As of the end of H1 2025, 118,000 piles were installed; 608 km of pipeline were laid to design levels. The Company completed laying a backup pipeline crossing the Yenisei River; backfilling of the trench in the channel part is underway.
The construction of two cargo berths, as well as a berth for the port fleet at the Sever Bay Port terminal, is nearing completion. Construction of the first oil loading terminal continues, and construction of the second one has begun. Construction of a Sever Bay Port crude oil delivery and acceptance point and the Suzun oil pumping station is underway, and construction of the Payakha oil pumping station has begun. The Company continues with the construction of logistics infrastructure and hydraulic engineering installations, shore reinforcement, and expansion of onshore and berth infrastructure.
Refining
In H1 2025, the refining volume amounted 38.7 mln tons. Decrease in the refining volume is attributable to the need for maintenance and repair works as well as to the optimization of refinery utilization in view of the current pricing environment, logistics constraints and demand. The oil conversion rate increased to 77.6%, and the light products yield reached 60.3%.
Rosneft continuously works to maintain a high level of reliability of its oil refining assets. In particular, the Company provides the operation of its refinery process units with its own catalysts, which are necessary for the production of high-quality motor fuel. In H1 2025, Rosneft produced 1.3 th. tons of catalysts for hydrotreatment of diesel fuel and gasoline fractions, as well as protective layer catalysts. Rosneft subsidiaries also produced 40 tons of gasoline reforming catalysts and 176 tons of catalysts for hydrogen production, petrochemicals and adsorbents. 720 tons of coked catalysts for hydrotreatment of diesel fuel were regenerated.
The Company is a key supplier of high-quality motor fuels for Russian consumers. In H1 2025, 20 mln tons of petroleum products were delivered to the domestic market, including 6.4 mln tons of gasoline and 7.8 mln tons of diesel fuel.
Rosneft continues to actively participate in trading on the St. Petersburg International Mercantile Exchange. In the reporting period, 4.7 mln tons of gasoline and diesel fuel were sold on the exchange, which is 1.8 times higher than the required volume
Financial performance
The Company’s revenue in H1 2025 decreased by 17.6% year-on-year, amounting to RUB 4,263 bln on the back of the declining oil prices and a stronger ruble. At the same time, the rate of cost savings and expense reduction lagged behind the revenue dynamics, with one of the reasons being indexation of tariffs imposed by the natural monopolies. As a result, EBITDA in H1 2025 decreased to RUB 1,054 bln.
In H1 2025, the net income attributable to Rosneft’s shareholders amounted to RUB 245 bln. This indicator is still negatively affected by prohibitive level of the key rate of the Central Bank of the Russian Federation. In addition, non-monetary and one-time factors negatively affected the dynamics of the indicator in the reporting period.
The Company’s Capex in H1 2025 amounted to RUB 769 bln due to the scheduled implementation of the investment program mainly at Upstream assets. Free cash flow for the reporting period amounted to RUB 173 bln.
The net debt / EBITDA ratio at the end of H1 2025 amounted to 1.6х, which continues to remain at a level significantly below the minimum covenant under the loan agreements.
ESG
In the reporting period, the Company proceeded with activities aimed at achieving sustainable development goals under the Rosneft-2030 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 illnesses. In H1 2025, the Lost Workday Injury Severity (LWIS) decreased by 40%.
As a result of accident prevention measures taken in H1 2025, the number of incidents related to process safety at the Company’s subsidiaries decreased. In particular, the frequency rate of severe loss of containment events (PSER-1) reduced by 52% versus H1 2024, and PSER-2 decreased by 22%.
In the reporting period, no gas, oil and water shows (release of oil, gas or water to the surface) were registered during well drilling operations at Rosneft facilities. The Company continued with pipeline replacement as part of its efforts to minimize oil and petroleum product spills.
Rosneft’s subsidiaries maintain high standards of environmental safety in the field of water management in all regions of operations. The biological treatment facilities of the Ufa refineries play an important role in the Company’s effort to enhance the effective use of water resources. During January-June, biological treatment facilities processed 11.7 mcm of wastewater, and for seven years of the total operations processed volume exceeded 169 mcm of wastewater. At the Samara facilities the Company has been successfully implementing a unique ecological wastewater treatment project using water hyacinth.
Rosneft scientists have developed an innovative oil spot detection technology that will significantly increase the efficiency of environmental protection measures in the oil sector. The new technology makes it possible to distinguish between natural reservoirs and oil spots with high precision.
The Company’s leadership in sustainable development receives independent external recognition. In June 2025, Rosneft was included in the Climate Sustainability Index of non-financial companies constructed by the Moscow Exchange. The index includes shares of companies that are leaders in the sustainable development agenda with a well-established climate management system.
1 This includes sales revenue and income from associated organizations and joint ventures.
Information and Advertising Department
Rosneft Oil Company
August 30, 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 necessarily reflect the position of MIL-OSI or its clients.
