Russia's Rosneft net income down 15% for January-September 2022

By Emre Gurkan Abay

MOSCOW (AA) - Rosneft, Russia's largest oil company, reported Wednesday that its net income for the January-September period this year decreased year-on-year by 15% to 591 billion rubles (around $9.4 billion).

The net income for the first nine months of last year was the highest on record in the company's history, totaling 696 billion rubles (over $11.06 billion).

The company attributed the decline to "non-monetary factors," citing the transfer of the company's assets in Germany to the external management of the Federal Network Agency, Bundesnetzagentur.

The transfer of assets, which led to a significant negative impact on income, resulted in the "recognition of an additional loss of 56 billion rubles (over $890.16 million)" and "a 76 billion-ruble (around $1.2-billion) reduction in cash," Rosneft said.

Capital expenditure for the same period amounted to 822 billion rubles (about $13.06 billion), up by 19.3% year on year, mainly due to the planned growth in investments in the Vostok oil project, expected to be the biggest oil project in the world in the last decade.

Hydrocarbon production for the first nine months of the year increased by 2.2% year-over-year to 4.97 million barrels of oil equivalent per day.

Oil sales volume increased by 3.3% to 86.9 million tons, while crude oil sales in non-Commonwealth of Independent States rose by 4.8% to 77.3 million tons during the same period.

* Writing by Zeynep Beyza Kilic