Surgutneftegas swings to RAS net profit of 63 bln rubles in H1
MOSCOW. July 31 (Interfax) - Surgutneftegas swung back to profitability in the first half of 2017, posting an RAS net profit of 63.358 billion rubles in the six months, according to the oil major's earnings report.
Given that the company posted a 90.748 billion loss in Q1, Surgutneftegas must have made a 154.106 billion ruble profit in Q2.
Surgutneftegas posted a net loss of 141.896 billion rubles in H1 2016, posted small profits in Q3 and Q4 but ended up with a 105 billion ruble net loss for the year. As a result the company paid out only symbolic dividends for 2016.
Revenue increased 14.5% to 534.874 billion rubles and gross profit fell 12% to 145.392 billion rubles. However, an almost 80% reduction in the negative balance of other costs and incomes made the biggest difference.
The main factor in Surgutneftegas' financial model is multi-billion forex deposits, the re-evaluation of which, because of exchange rate fluctuations, overshadows the results from its usual business activities as an oil company. Thus the company's shares are called derivatives of the dollar-ruble pair.
