The company’s Chief Executive Igor Sechin said that in 2023, Rosneft continues systematic work to increase efficiency and increase production potential, especially in the gas business, due to external restrictions on oil production. 2023.
By the end of the year, Rosneft became the leader among Russian independent gas producers, increasing gas production by a quarter to 92.7 billion cubic meters (excluding gas used for other technological needs). This is a record figure in the history of Rosneft.
The statement states that at the end of the year, the company’s hydrocarbon production was 269.8 million tons of oil equivalent, including the production of 193.6 million tons of liquid hydrocarbons.
Thus, Rosneft’s hydrocarbon production rate is higher than Shell, bp, Equinor, TotalEnergies and many other world giants.
Rosneft continued to develop new production projects, in particular, large-scale geological exploration continues within the framework of its flagship Vostok Oil project. In Taimyr, where the project is implemented, pilot development of various areas is ongoing, and the construction of priority infrastructure facilities, including the oil pipeline and logistics facilities, is ongoing.
As Rosneft Chief Executive Igor Sechin emphasized, due to rising interest rates from the second half of the year, Rosneft focused its attention on reducing the overall debt burden; prepayment debt and net fiscal debt were collectively reduced by 0.7 trillion rubles.
“At the same time, interest expenses increased due to the increase in the interest rate of the Bank of Russia and the further increase of interest margins by banks, which led to an increase in the profits of the banking sector in 2023. To save levels. In particular, the company’s interest expenses for the fourth quarter of 2023 increased by 1.5 times compared to the same indicator for the fourth quarter of 2022,” added Sechin.
At the end of last year, net profit attributable to Rosneft shareholders reached almost 1.3 trillion rubles. This was 10% above market analysts’ expectations.
The company’s revenue in 2023 was 9.2 trillion rubles, and EBITDA was 3 trillion rubles. Additionally, unit costs of hydrocarbon production fell to $2.6 per barrel of oil equivalent. According to Sechin, this was achieved through efforts to control costs and increase efficiency.
According to stock exchange trading data, Rosneft’s work is evaluated positively in the market. The company’s securities in 2023 became one of the fastest growing securities on the Russian stock exchange, and by the end of the year its capitalization exceeded 6.3 trillion rubles.
Additionally, the number of individual shareholders increased by more than a quarter in the last six months, reaching 1.13 million people in November. Rosneft’s chairman called this growth “additional evidence of investors’ confidence” in the company.