Rosneft unexpectedly raises quarterly profit by 46 percent to 323 billion rubles

Russia’s largest oil company, Rosneft, increased its net profit by 45.5 percent in the first quarter compared with the previous three months, to 323 billion rubles (roughly CZK 89 billion). Higher production contributed to the rise, the company said in a statement today. The result was better than analysts had expected.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose to 672 billion rubles in the January-March period, up 25.1 percent from the previous three months. Revenue fell 1.1 percent to 1.82 trillion rubles. Analysts polled by Interfax had expected net profit of 236 billion rubles, EBITDA of 567 billion rubles and revenue of 1.797 trillion rubles.

The company also said it increased oil and gas production by 0.8 percent in the first quarter compared with the October-December period, to more than four million barrels per day. Rosneft’s profit was boosted by growing oil sales to India and other destinations outside Europe.

The Sakhalin-1 oil project in Russia’s Pacific region also contributed to Rosneft’s production. It returned from zero production to a level of about 200.000 barrels per day. According to the company, output at Sakhalin-1 increased 1.8 times quarter on quarter.

On Tuesday, Rosneft said its board had recommended paying a dividend of 17.97 rubles per share for last year, in line with analysts’ expectations. The management’s decision contrasts with the policy of a number of other Russian companies, which canceled dividend payments for the past year, Reuters reported.