Russneft in 2014 boosts net losses almost five times, revenue falls by third
MOSCOW. Feb 24 (Interfax) - OJSC Russneft increased net losses by 4.7 times to 101.143 billion rubles in 2014, the company said in annual report.
Russneft's revenue last year fell by 30% to 102.431 billion rubles, of which 94.9% came from the sale of acquired and produced oil, the remaining 4.9% from the sale of gas.
The company in 2014 sold gas and a large part of produced oil (63% of the total volume) only on the domestic market.
The total volume of sold oil in 2014 reached 8.713 million tonnes against 12.68 million tonnes a year earlier. Oil sales volumes fell in 2014 by 31% in comparison with 2013.
The company noted in the report that the losses of Russneft due to exchange rate differences in 2014 amounted to 20.3 billion rubles.
In 2014, Russneft received loans amounting to $17.5 million, and paid back loans with account of accrued interest for $274.06 million.
The debt on borrowed obligations on December 31, 2014 amounted to 254.683 billion rubles.
At the beginning of 2015 undistributed profit of Russneft amounted to 14.689 billion rubles. Uncovered losses of the company amount to 86.454 billion rubles.
Russneft is attributing the negative financial result to the significant deterioration of the market situation, both in the oil sector and on the forex market. "In 2014 the significant fall in the prices for crude oil and the significant devaluation of the Russian ruble, as well as the sanctions imposed against Russia by several countries, had a negative effect on the Russian economy. In December 2014 interest rates in rubles significantly rose," the report said.
