Russian state-controlled oil giant PAO Rosneft said its net profit for the first half of the year nearly halved compared with the same period of 2015 as weak oil prices dragged down revenues despite a slight recovery in prices the second quarter.
Rosneft said net profit for the first half of the year was down 45.8% at 103 billion rubles ($1.6 billion), as revenue fell 14.2% to 2.28 trillion rubles. Net profit increased more than sixfold in the second quarter to 89 billion rubles compared with the first three months of the year on revenue that was up 17.6% to 1.23 trillion rubles.
“With remaining volatility, the commodity markets showed some improvements in 2Q 2016, and average ruble crude oil price went up by 20% against 1Q 2016,” Rosneft Chief Executive Igor Sechin said in a statement. He said the priorities are control over operating and selling, general and administrative costs, as well as raising the quality of the investment program.
Rosneft’s earnings before interest, taxation, depreciation and amortization, or Ebitda, fell 7.3% in the first half of the year to 621 billion rubles. Ebitda in the second quarter was 27.5% higher than the previous quarter at 348 billion rubles.