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Rosneft third-quarter profit jumps 16%

November 07/2019

MOSCOW (MRC) -- Russia's Rosneft energy giant announced a large jump in third quarter year-on-year net income due to sales growth and clean-up of contamination of a strategic pipeline, said the company.

Between July and September, Russia's largest oil producer posted net income of 225 billion rubles (around USD3.5 billion), up 58.5 percent on the same period last year and up 16 percent on the previous quarter.

In the third quarter, the state-controlled group "was able to increase liquids production" quarter on quarter and "partially compensate" for production decline in the second quarter as a result of restriction of oil intake into trunk pipelines, said Rosneft chief Igor Sechin.

He added in a statement the increase in income was also due to sales growth amid falling crude prices.

In April, a key pipeline to Europe named Druzhba, or Friendship, was shut down due to contamination with chlorine compounds. The pipeline takes oil to a number of countries including Poland, Germany and Slovakia.

Rosneft reported that its liquid production rose 2.1 percent from the second to the third quarter due to the contamination being cleared up. "We restored crude oil refining throughput and strengthened our positions in the traditional markets," Sechin was quoted as saying.

The group's liquid production figure was nevertheless down 1.4 percent year-on-year, which the company attributed to Russia's agreement with OPEC to reduce production.

Rosneft announced in late October it will price its oil exports in euros, not dollars, to reduce the impact of US sanctions. Russia is seeking to wean its economy off the dollar and has cut the currency's share in its international reserves.

Rosneft holds a 49.13 per cent stake in Indias Nayara Energy, which owns the Wadinar refinery, the countrys second-largest with a 20mn tonnes per year in processing capacity. W.R. Grace & Co. licensed its Unipol PP process technology to Nayara Energy for a new world-scale polypropylene (PP) plant to be built at the site of Nayara's 20-million-t/y Vadinar refinery in Gujarat, India. The 450,000-t/y PP unit is part of Nayara's USD850-million investment at the refinery to expand into petro-chemicals.  A start-up date was not available.

According to MRC's ScanPlast report, the estimated PP consumption in the Russian market was 976,790 tonnes in January-September 2019, up by 4% year on year. Shipments of PP block copolymer and homopolymer PP increased.

Rosneft became Russia's largest publicly traded oil company in March 2013 after the USD55 billion takeover of TNK-BP, which was Russias third-largest oil producer at the time.
Author:Anna Larionova
Tags:petroleum products, crude oil, PP, PE, petrochemistry, Rosneft.
Category:General News
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