Rosneft net debt declines 19.7% to 1.495 trln rubles
MOSCOW. July 25 (Interfax) - Net debt at Rosneft declined 19.7% to 1.495 trillion rubles (about $44.5 billion) in the first half of 2014, the company said in a statement.
The net debt/EBITDA ratio was at 1.28 in the second quarter.
Free cash flow totaled 112 billion rubles, 200% higher than in the second quarter last year.
Total of loans and borrowings was 2.179 trillion rubles as of June 30, 2014 compared to 2.303 trillion rubles as of March 31, 2014. The decrease was mainly attributable to planned repayments of the loans and the effect of revaluation of debt denominated in foreign currency, Rosneft said.
A portion of Rosneft's long-term loans are secured by oil export contracts. If the company fails to make timely debt repayments, the contracts provide the lender with an express right of claim for contractual revenue in the amount of the repayment shortfall.
The proportion of Rosneft's borrowings that were secured by crude oil export contracts (excluding exports to the CIS) was 26.1% as of June 30, 2014, 26.4% as of March 31, 2014 and 23.4% as of June 30, 2013.
Rosneft says in materials that in the third and fourth quarters of this year it will settle another 440 billion rubles of debt, in 2015 - 626 billion rubles, in 2016 - 285 billion rubles, in 2017 - 280 billion rubles and in 2018 and beyond - 849 billion rubles.
