13 Nov 2010 15:01

Russneft boosts sales revenue by 19% in 9 mths

MOSCOW. Nov 13 (Interfax) - Russneft Oil Company increased its sales revenue according to Russian accounting standards by 18.6% year-on-year to 98.648 billion rubles in January-September 2010, the company said in a statement.

The company's production costs went up by one fourth to 72.2 billion rubles, gross profit - 3.7% to 26.44 billion rubles and profit from sales - down 15.5% to 11.675 billion rubles owing to a 28% rise in commercial expenditures. Russneft's pretax profit fell by 88% to 2.516 billion rubles. This figure went down owing to rising operational costs (up 19%) while miscellaneous operational revenues increased by 3%. Total interest on payments went up by 15% to 16.2 billion rubles.

Russneft said in the statement that it had finished a processing agreement with CJSC Krasnodar Refinery - Krasndarkoneft. As a result, all oil that had been earlier shipped for refining was redirected for free sale. This raised Russneft's total sales in the third quarter by 51% and allowed the company to boost revenue from oil sales by 52% year-on-year to 18.922 billion rubles.

The company's revenue from petroleum product sales dropped by 19% year-on-year to 16.2 billion rubles as total petroleum sales in volume went down 22% even as their average pricing went up by 3%.

Russneft's subsidiaries in the third quarter received five licenses for exploration and production. The group's total licenses therefore reach 111.

Company founder Mikhail Gutseriev and AFK Sistema each own 49% stakes in RussNeft. Sberbank has 2%.