Rosneft RAS earnings plummeted 75% to 24 bln rubles in 9M
MOSCOW. Nov 14 (Interfax) - Rosneft saw its net profit to Russian Accounting Standards (RAS) plummet 75% in January-September 2016 to 23.6 billion rubles, from 93 billion rubles in the same period of last year, the oil company said in a report.
"The company had a positive financial result, despite an unfavorable pricing and exchange-rate environment," it said.
The pricing and exchange-rate environment was more challenging than a year previously. Urals crude fell to its lowest since the crisis began, averaging at $40 to the barrel, or 26.8% less than in January-September 2015. The ruble averaged at 68.4 rubles/$1, only 15.3% higher.
Pipeline tariffs also took their toll: pipeline operator Transneft's tariffs went up 5.76% for crude oil and 12% for petroleum products pumped to most destinations, while Russian Railways (RZD) put its petroleum freight tariffs up 9%.
Financial results came under pressure from the export duty lag, as the base for calculating the tariff in the third quarter of a year is substantially higher than in the second quarter.
Also, the base mineral extraction tax rate rose from 766 rubles to 857 rubles on January 1. The coefficient used to calculate the maximum oil export duty was not lowered from 42% to 36%, as planned as part of the tax maneuver.
The overall negative effect of external factors on net profit was estimated at 134 billion rubles.