Rosneft’s net profit in 2021 may grow 6 times

by time news

By the end of 2021, Rosneft’s net profit could grow 6 times to almost 900 billion rubles, which allows shareholders to count on the payment of record dividends, Interfax and Bloomberg report, citing analysts’ consensus forecasts. As a reminder, for 1H 2021, the company paid a record high interim dividend of RUB 18.03. per share, having allocated 191.04 billion rubles for these purposes.

Rosneft will publish its IFRS financials for the 4th quarter and 12 months of 2021 on February 11.

The mid-market consensus forecast of experts on Rosneft’s revenue for the fourth quarter of last year amounted to 2.5 trillion rubles, which is 1.7 times more than in the last quarter of 2020. EBITDA in the last quarter of 2021 increased by 82% by the end of 2020 and amounted to 64 billion rubles. Compared to the third quarter, EBITDA, according to analysts, increased by 3.9%.

According to an Interfax survey, in the fourth quarter, the company received net profit under IFRS in the amount of 201 billion rubles, which is 38% less than in the same period in 2020. Compared to the third quarter, net profit decreased by 36%. But, despite the decline in oil production due to the sale of low-performing assets, the company noted an increase in profitability in the fourth quarter due to an increase in raw material prices.

At the same time, experts note that the reduction in profit in the last quarter of 2021 could have occurred due to the write-off of funds for the acquisition in November from Shell of a stake in the German RSK refinery in the city of Schwedt. “We assume that the deal was most likely concluded at a very favorable price for Rosneft, which will require a revaluation of the book value of the existing 54% stake in this plant, acquired in 2011,” Interfax quotes a BCS report.

Earlier, BP, which owns 19.75% of Rosneft, estimated the profit of the Russian company in the fourth quarter of 2021 at 183 billion rubles. But the indicators used by the British company do not always coincide with the data of Rosneft itself. In particular, according to the results of the third quarter of 2021, BP estimated the company’s net profit at 291 billion rubles, but it amounted to 314 billion rubles. At the same time, in the fourth quarter of last year, BP received $555 million in profit before interest and taxes from its participation in the share capital of Rosneft.

According to the Moscow Exchange, at 22.00 Moscow time on February 10, a Rosneft share was worth 573.40 rubles. On October 26, during trading on the London Stock Exchange, the capitalization of Rosneft exceeded $100 billion.

You may also like

Leave a Comment