Facing pressure from external forces and a volatile macro environment, Rosneft again demonstrated strong operational efficiency in 2022 and affirmed the durability of its business model. This message came from Rosneft’s leadership, with the CEO, Igor Sechin, reflecting on the company’s annual results as presented by the corporation’s communications team.
According to the 12 month results disclosed by Rosneft for 2022 and prepared under the International Financial Reporting Standards, the company achieved a modest rise in hydrocarbon production, advancing by 2.3 percent versus the prior year. The reported average stood at 5.10 million barrels of oil equivalent per day, and with the restart of production on the Sakhalin I project in the fourth quarter, the 2022 average daily hydrocarbon output rose to 5.50 million boe per day.
Following the departure of the previous operator, Rosneft quickly resumed production, resumed tanker shipments, and restarted the drilling program. In the process, more than 3,000 high-quality jobs were preserved, reinforcing the company’s role in maintaining employment during the transition period.
The executive noted that cost controls and efficiency improvements allowed Rosneft to keep growth in unit production costs below the rate of industrial producer price inflation in 2022. This was achieved through disciplined financial management and continuous optimization across the production chain.
The annual report also highlighted positive movements in several key financial indicators. Revenues and earnings before interest, taxes, depreciation, and amortization rose while the company reduced debt and commercial liabilities by 0.7 trillion rubles since the start of the year, signaling improved balance sheet strength.
Specifically, revenues rose by 3.2 percent and EBITDA increased by 9.5 percent. Net profit attributable to shareholders for 2022 reached 813 billion rubles. The results underscored the company’s ability to generate shareholder value even amid a challenging external environment.
Rosneft continued a robust investment program throughout 2022, with capital expenditures surpassing 1.1 trillion rubles. The company emphasized that the dividend policy remained active, completing more than 216 billion rubles in interim payments in February 2023, representing half of the IFRS net profit for the first half of the prior year, a distribution aligned with the company’s policy to return value to shareholders based on business performance.
Sechin stated that the positive net profit outcome in 2022 provides a foundation for ongoing stable distributions to shareholders, aligned with the company’s performance across the reporting period. The market reaction followed as Rosneft shares rose during trading on the Moscow Stock Exchange, with continued growth observed after the publication of the 2022 IFRS results.
Industry analysts noted that Rosneft outperformed market expectations on several key metrics, particularly net profit, which exceeded analysts’ forecasts. The investment community viewed these results as supportive of further upside for Rosneft shares, reflecting confidence in the company’s strategic execution and financial discipline. Analysts from Sinara and other institutions offered similar perspectives, suggesting that the 2022 results should bolster the stock’s appeal and could influence dividend expectations for the latter part of the year.