Rosneft profit takes hit

Russia

MOSCOW, November 11, 2016 – Rosneft on Friday reported a 77% year-on-year drop in profit to some USD 397 million, citing the continuation of difficult market conditions.

The company’s quarterly results were far below analysts’ expectations, who had projected a net income of around USD 687 million. Sales were down too, reaching about USD 183 million.

“In Q3 2016 the environment on the commodity markets remained difficult. Additional pressure on the company’s profitability was from (a) considerable negative export duty lag effect,” CEO Igor Sechin said in a statement.

On the upside, Rosneft reported a 20% increase in earnings before interest, taxation, depreciation and amortisation to USD 4.46 billion.

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