Rosneft to spend 80 bln rubles on refinery upgrades in 2011
MOSCOW. May 3 (Interfax) - Rosneft plans to invest 80 billion rubles to modernize its refineries in 2011, First Vice President Pavel Fyodorov told Interfax.
"We have invested and will continue to invest huge sums to modernize our facilities. Overall investment in 2011 will amount to 80 billion rubles," he said.
"Just a few years ago the company's refineries were obsolete by international standards. We have put a lot of money into their modernization and Rosneft maintains significant investment plans for its refining segment. Looking ahead, in three-four years we will definitely meet 100% of the requirements contained in the technical regulations," he said, adding that all the fuel currently sold at Rosneft filling stations is already in full compliance with the technical regulations.
Rosneft lost $100 million on its retail market operations in the first quarter, he said. "The company was operating in the red on the retail market in the first quarter. It lost roughly $100 million," he said. Rosneft sold 11.75 million tonnes of refined product in the first quarter, 2.5% less than in the same quarter last year and slightly less than in the fourth quarter of 2010.
"Oil product production in the first quarter was somewhat lower, because we were maintaining one unit in Samara and closed a unit at Tuapse, as we are upgrading that plant into one of the best refineries in Europe, with capacity for 12 million tonnes a year. Production was 30,000-40,000 tonnes less," Rosneft Vice President Peter O'Brien told Interfax.
Most of Rosneft's profit - over 90% - came on the production side, Fyodorov said. "That explains the EBITDA of about $6.7 billion," he said. "Rosneft received an all-time record cash flow, $3.3 billion. It was the result mainly of high oil prices, fulfillment of the production plan and cost control measures," he said.
Rosneft posted a net profit of $3.942 billion in the first quarter, 60% more than in the same period last year. Net debt in the first quarter fell to $11 billion from $13.662 billion at the end of the fourth quarter of 2010. Sales revenue increased 36.3% year-on-year to $20.123 billion. The improvement was the result of higher prices on output and increased volumes. Rosneft boosted average daily production 2.9% year-on-year to 2.355 million bpd in the three months.
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