Rosneft Swings To 2Q Net Loss Of RUB8 Billion
08/01/2012| 12:30pm US/Eastern
By James Marson
MOSCOW--Russian state-controlled oil producer OAO Rosneft (>> Rosneft' NK OAO) Wednesday announced an unexpected second-quarter net loss of 8 billion Russian rubles (248 million dollars) on the back of lower crude prices, the ending of tax breaks for its giant Vankor field, and foreign exchange losses because of exchange rate volatility.
A Dow Jones Newswires survey of five analysts had forecast a net profit of RUB32 billion.
Rosneft Chief Executive Igor Sechin said in a statement that the company had "launched efforts to improve our corporate structure and boost efficiency in marketing and procurement" in order to minimize the negative impact of external factors.
Rosneft, which said July 15 it is in talks with BP PLC (>> BP plc) to buy the U.K. major's stake in its troubled TNK-BP (>> TNK-BP Holding OAO) venture, also blamed higher transportation costs and the negative effect of a time lag in export duties for the net loss.
Rosneft has switched to IFRS reporting in rubles from GAAP in U.S. dollars in the second quarter of 2011. The company didn't provide adjusted figures for comparison. A year ago, Rosneft reported net profit of 2.83 billion dollars.
Revenue for the second quarter of 2012 was at 718 billion rubles, helped by increased sales volumes and higher prices for refined products. Analysts had expected revenue at 740 billion rubles. Earnings before interest, taxes, depreciation and amortization, or Ebitda, was at 89 billion rubles.
In the second quarter last year, Ebitda was at 5.33 billion dollars and revenue was 23.3 billion dollars.
Rosneft said it produced 2.62 million barrels of oil equivalent a day during the quarter.
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