Rosneft reports net profits of USD 179.2 million in first half of 2003

Rosneft reported net profits of USD 179.2 million in the first half of 2003. Total assets increased to USD 3.2 billion, according to the company's latest financial report released on November 13. The company uses the US GAAP system of accounting.

According to the report, the company's profits before taxes and amortization in the first six months of the year stood at USD 462 million. Total oil excavation increased by 16.3% year-on-year and reached 9.1 million tones. The total amount of refined oil also increased by 10.7% year-on-year to 4.7 million tones. Total exports also increased over the period and reached 53% of total excavation.

100% of the Rosneft shares are owned by the government. The company is cooperating with Gazprom in realizing oil excavation projects in the Prirazlomy and Shtokmanovsky oil fields located in the Barents Sea. It is also working with Surgutneftegaz on a project to construct an oil refinery in Primorsk, Leningrad Region. Rosneft also runs a large network of gasoline stations in Murmansk and Arkhangelsk regions and a sea export terminal in Arkhangelsk. Last fall the company purchased Severnaya Neft oil company, which is developing oil fields in Komi Republic and the Nenetsky Autonomous District. The company reported net profits in 2002 of USD 323.7 million or a 64% increase year-on-year. Total oil excavations also increased in 2002 by 7.9% year-on-year and reached 16.1 million tones. DeGolier & MacNaughton report that Rosneft has an estimated oil reserve of 421 million tones.

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