Correction to Rosneft 3Q Earnings Story

By Adam ClarkFeaturesDow Jones Newswires

Rosneft Oil Co. (ROSN.MZ) said Tuesday that its net profit for the third quarter of 2017 fell 27% from the year before, hit by an increase in interest rates on its borrowings.

The Russian state-backed oil company made a net profit of 47 billion rubles ($790.7 million) for the quarter compared with RUB64 billion the year before.

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Rosneft said its financial results were hit by pressure from sanctions forcing it to replace foreign currency borrowings with rubles, resulting in significant growth in real interest rates ahead of its major peers.

However, earnings before interest, tax, depreciation and amortization rose 21% to RUB371 billion, helped by integration of new assets.

Rosneft's quarterly revenue rose 6.9% to RUB1.496 trillion from the prior year, which the company said was due to production improvements, optimization of its sales structure and positive cost movements.

Chief Executive Igor Sechin said a gradual recovery in the price of oil has laid the groundwork for growth in the value of Rosneft's recently-acquired assets and the company has continued to execute key upstream projects.

Write to Adam Clark at; @AdamDowJones

Rosneft Oil Co.'s net profit for the third quarter of 2017 fell 27% from the earlier quarter, ebitda rose 21% compared with the earlier quarter and revenue rose 6.9% compared with the earlier quarter. "Rosneft 3Q Net Profit Falls on Higher Interest Rates, but Revenue Rises," at 0746 GMT, incorrectly said the figures were compared with the year before. The figures are compared quarter-on-quarter, not year-on-year.

(END) Dow Jones Newswires

November 14, 2017 05:49 ET (10:49 GMT)