Rosneft's profit fell by a tenth

Rosneft's net profit decreased in 2014 by 9,8 percent, compared to 2013, to 350 billion rubles ($5,6 billion), the company announced.

The indicator of net profit for 2013 (388 billion rubles) does not include the effect of the change in the value of assets due to the takeover of TNK BP of 167 billion rubles, Tas reported.

Rosneft's revenues in 2014 increased by 17,2 percent to 5.503 billion rubles, EBITDA (earnings before taxes, interest and depreciation) increased by 11,6 percent to 1.057 billion rubles.

Oil and gas production increased by 4,8 percent, to 5,1 million barrels of oil equivalent per day.

According to the company's report, the level of net debt expressed in dollars decreased last year by 13,6 billion dollars. In Rosneft, they indicate that the indicator of the debt burden expressed in rubles is negatively affected by the fall of the ruble against foreign currency, which does not affect the debt burden in dollars, considering the stability of income and the planned repayment of all loan obligations.

Rosneft's production costs in 2014 were $3,9 per barrel of oil equivalent, Sviatoslav Slavinski, the company's vice president for economics and finance, told Tas.

Last year, the company reduced operating costs expressed in dollars by 9,3 percent and achieved the lowest production costs of $3,9 per barrel. It is three to four times more efficient compared to international groups and outperforms comparable companies in Russia, he explained.