Russian oil major Rosneft has reported consolidated revenue of $10.79 billion for the second quarter of 2007, an increase of 25.4% compared to the prior-year period. In addition, the company saw a staggering 610.8% increase in net income, from $1.08 billion in Q2 2006 to $7.66 billion in Q2 2007, and a 49.5% increase in adjusted net income, from $1.11 billion in Q2 2006 to $1.66 billion in Q2 2007.
In the second quarter, revenues and EBITDA rose approximately 18.7% and 38.5%, respectively, excluding the effects of 2007 acquisitions, and 25.4% and 54.8%, respectively, on an unadjusted basis. Adjusted EBITDA increased to $3.58 billion from $2.31 billion in the second quarter of 2006 and from $1.74 billion in the first quarter of 2007.
The company’s production growth for the quarter reached 6.1% on an organic basis and 24.7% including the effect of acquisitions.
Rosneft said that the improved financial performance in Q2 2007 was largely due to strong improvements in organic performance, specifically accelerated production growth rates and improved domestic product sales; the new level of vertical integration at the company following the acquisition of five new refineries in May 2007, and the purchase of new upstream assets.
Sergey Bogdanchikov, president of Rosneft, said: The results of the second quarter of 2007 demonstrate strong organic performance both through industry-leading production growth and increased profitability.
These financial results include the recently acquired assets for approximately half the second quarter and further improvements in profitability will be realized as we continue to integrate and optimize our portfolio. We will continue to work to demonstrate leading financial performance and earnings growth among Russian oil majors.