Russia's Rosneft may delay refinery modernisation due to high interest rates, taxes
Rosneft's 9-month profit down 13% to $8.7 billion
Company critical of high interest rates, taxes
Rosneft says OPEC+ deal pressured its oil output
Recasts with possible delay to plants modernisation, adds detail, background throughout
By Olesya Astakhova and Vladimir Soldatkin
MOSCOW, Nov 29 (Reuters) -Rosneft ROSN.MM, Russia's largest oil producer, said on Friday it may delay modernizing its refineries due to high interest rates and taxes, as its nine-month profit fell 13.9% year on year to 926 billion roubles ($8.7 billion).
Industry sources told Reuters this month that at least three Russian refineries, including Rosneft-owned Tuapse plant, had to halt processing or cut runs due to financial losses amid export curbs, rising crude prices and high borrowing costs.
Rosneft's head Igor Sechin, a longstanding ally of President Vladimir Putin, has long criticised the central bank for its tight monetary policy.
"In order to protect the shareholders' interests and avoid losses, Rosneft has been considering the need to suspend refinery modernization projects. At the same time, meeting the domestic demand for quality petroleum products remains a priority," the company said.
The bank hiked its key interest rate by 200 basis points last month to 21%, the highest level since the early years of Putin's rule in the 2000s, when Russia was recovering from the chaos that followed the Soviet Union's collapse.
Rosneft also said that a profit tax increase to 25% starting in 2025 had a negative impact on company results.
The company said its oil and gas condensate production from January to September reached 138.3 million metric tons in total, or 3.753 million barrels per day on average.
Rosneft did not provide production data from a year ago for comparison, but said output was pressured by an OPEC+ agreement to curb production.
Rosneft said it had renewed its share buyback program amid high stock-market volatility.
($1 = 106.4955 roubles)
Reporting by Olesya Astakhova and Vladimir Soldatkin; Editing by Rod Nickel
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
