The revenue of Rosneft for the first time exceeded 6 trillion rubles

In 2017, this indicator grew by 20%, net profit increased by 27.6% to 222 billion rubles.
The largest Russian oil company Rosneft has published a report on IFRS for 2017. The company's revenue for the first time in history has exceeded 6 trillion rubles. (6,014 trillion rubles), an increase of 20% over the previous year. So far, the maximum indicator of "Rosneft" demonstrated in 2014 - 5.5 trillion rubles. EBITDA of the state company in 2017 also broke the record - rose by 9.8% to 1.4 trillion rubles. Before that, the maximum was in 2016. Net profit increased by 27.6% to 222 billion rubles. But it did not break the record: twice as much as net profit, Rosneft received in 2013 - 555 billion rubles.

The revenue growth was driven by the integration of new assets in 2017 (the company completed the purchase of a stake in the Indian plant Essar Oil, as well as the gas Egyptian project Zohr), in addition, the price dynamics in the oil market positively affected, the company said. The average price of Brent crude in 2017 increased by 24% to $ 54.12 per barrel. The profitability of Rosneft for EBITDA decreased by 2.4 percentage points to 22.6%.

Capital expenditure in the past year increased by 30% to 922 billion rubles. Most of all, the company invested in Russian production assets - Yuganskneftegaz (207 billion rubles, 31% more than 2016) and Samotlorneftegaz (50 billion rubles, 13.64% more than a year earlier). Free cash flow fell almost twice - to 245 billion rubles.

"Entering the new markets of Egypt and India will significantly accelerate the development of the company's global business platform," the words of its CEO Igor Sechin are quoted in the statement by Rosneft. "The start of gas production on the Zohr project and entry into Essar Oil are already helping to increase financial performance," he said.

The company showed reporting better than expected, said Aton analyst Alexander Kornilov. If you look at EBITDA, which the company itself calculated, then it is higher than the consensus forecast by 10%. Rosneft managed to maintain free cash flow, despite large capital expenditures, net debt without taking into account Chinese contracts grew insignificantly - up to 3.5 trillion rubles. (+ 2.5% to the level at the end of the third quarter of 2017), and the debt load remained at an acceptable level of 2.5 EBITDA, the expert notes.