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Rosneft net profit down 13 percent after TNK buyout
April 30, 2013 / 2:16 PM / 4 years ago

Rosneft net profit down 13 percent after TNK buyout

MOSCOW (Reuters) - Net profit at Russia’s top oil producer Rosneft (ROSN.MM) fell 13 percent year-on-year as it completed the acquisition of BP’s (BP.L) Russian venture TNK in the first quarter.

The 102 billion roubles ($3.3 billion) outcome, however, compared favorably to the 88 billion roubles forecast by analysts polled by Reuters.

The state-owned Rosneft completed the $55 billion cash-and-stock acquisition of TNK-BP TNBP.MM at the end of March. TNK-BP’s financial and operational results during the last 11 days of March were incorporated into the reporting.

The TNK-BP acquisition impact amounted to 51 billion roubles in the first-quarter net profit, Rosneft said.

Rosneft had to borrow extensively to buy TNK-BP from the AAR consortium of Soviet-born tycoons and BP, which ended up with almost 20 percent in Russia’s flagship oil producer as part of the deal.

Rosneft, headed by Igor Sechin, the powerful ally of Russian President Vladimir Putin, said its net debt jumped to 1.8 trillion roubles ($58.21 billion) as of March 31, 2013 from the end of 2012.

Rosneft also said revenues increased by 7 percent to 812 billion roubles in January-March.

($1 = 30.9212 Russian roubles)

Reporting by Vladimir Soldatkin; Editing by Douglas Busvine and Patrick Graham

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