Rosneft: 2Q earnings soar 610 percent

Photo: Rosneft: 2Q earnings soar 610 percent

JSC Rosneft’s net profits soared 610 percent in the second quarter on higher than expected crude output, the company said.

The state-owned company said that, based on U.S. GAAP accounting standards, earnings for the April to June period reached US$7.6 billion (EUR5.3 billion), while earnings for the first six months of 2007 climbed 326 percent year-on-year to US$8 billion (EUR5.6 billion).

Revenues jumped 19 percent to US$19 billion (EUR13.3 billion) over the first half of the year, while second-quarter revenues surged 25.4 percent to US$10.7 billion (EUR7.5 billion).

The company said in a statement that the overall robust second-quarter indicators were the result of an increase in domestic oil products sales, improvement in overall effectiveness of the company's vertically integrated structure and oil refinery acquisitions.

Oil output in the second quarter grew 18 percent year-on-year and amounted to 7.8 million tons.

Rosneft was the main beneficiary of the politically charged bankruptcy of JSC Yukos, shoring up all the company's production and refining assets through liquidation sales earlier this year.

In 2006 Rosneft extracted 80 million tons of crude oil, of which 55 million tons were exported, according to the company.