Russian oil company increases profits despite penalties
Date
9/18/2022 8:55:48 AM
(MENAFN) Despite Western penalties, the world's largest oil company Rosneft improved its net profit by 13 percent in the first half of this year. The oil major stated in a statement this week that the company's net income increased to 432 million rubles (USD7.22 billion), while debt reduced by 12 percent from the beginning of the year. These factors together strengthened the company's "financial resilience."
Western penalties have had an impact on Rosneft and other Russian businesses. The oil firm states that strict controls enabled it to manage a steep increase in the cost of logistics, rail transportation, and power, which together make up 30 percent of total costs.
Igor Sechin, the CEO of Rosneft, claims that during the first half of the year, the corporation “was under unprecedented pressure of adverse external factors and unlawful sanctions. However, thanks to high operational efficiency and appropriate management decisions, we were able to ensure business continuity and demonstrate stable results.”
Through June, Rosneft processed 45.8 million tons of oil, with sales rising 5.7 percent compared to the same period last year. Growing demand from some of the largest economies in the world is one factor that has allowed Russia to export nearly as much petroleum as it did prior to the crisis in Ukraine.
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