Rosneft’s top executive, Igor Sechin, stated that in 2023 the company continued a systematic push to raise efficiency and unlock greater production potential, with a particular focus on the gas segment amid external restrictions on oil output. This approach reflected Rosneft’s strategic response to market dynamics and regulatory constraints, aiming to strengthen its position in key energy markets.
By year-end, Rosneft had emerged as the leading gas producer among Russian independents, lifting gas output by 25 percent to 92.7 billion cubic meters, excluding gas used for other technological needs. This marked a historic high for Rosneft, underscoring the company’s capacity to scale gas production while maintaining quality and reliability across its operations.
The annual report indicated that hydrocarbon production reached 269.8 million tonnes of oil equivalent, including 193.6 million tonnes of liquid hydrocarbons. These figures reflect Rosneft’s ability to sustain robust output across its diversified asset base, even in a year of complex macroeconomic movements.
In comparison with global majors, Rosneft’s overall hydrocarbon production performance positioned it ahead of several international giants, including Shell, bp, Equinor, and TotalEnergies in certain metrics, highlighting the company’s competitive scale within the global energy landscape.
Rosneft continued advancing new production initiatives, notably advancing the flagship Vostok Oil project. In the Taimyr region, pilot development progressed across various subareas, while essential infrastructure construction, including pipelines and logistics facilities, moved forward to support long-term production efficiency.
Igor Sechin emphasized that rising interest rates from the second half of the year pushed Rosneft to reduce its overall debt burden. Prepayment and net fiscal debt decreased collectively by 0.7 trillion rubles, reflecting a disciplined balance sheet approach designed to enhance financial stability and resilience.
He also noted that higher interest expenses were driven by the Bank of Russia’s rate increases and the widening of banks’ margins, contributing to higher banking sector profits in 2023. The company’s interest expenses for the fourth quarter rose by about 1.5 times compared with the same period in 2022, an effect attributed to higher borrowing costs during the year. This acknowledgment illustrates the inherent trade-offs involved in financing a large-scale energy portfolio during an era of tightening monetary policy.
At year-end, net profit attributable to Rosneft shareholders stood at nearly 1.3 trillion rubles, exceeding market analysts’ expectations by roughly 10 percent. This performance underscored the company’s ability to convert operational strength into stronger shareholder value amid a challenging external environment.
Rosneft reported annual revenue of 9.2 trillion rubles and an EBITDA of 3 trillion rubles. Unit costs for hydrocarbon production decreased to about $2.6 per barrel of oil equivalent, a result attributed to relentless cost control and ongoing efficiency improvements across the organization. These metrics reflect a disciplined approach to cost management while pursuing capacity expansion and productivity gains.
Market observers have responded positively to Rosneft’s performance. Based on stock exchange data, the company’s securities demonstrated strong growth in 2023, with market capitalization surpassing 6.3 trillion rubles by year-end. This trajectory signals investor confidence in Rosneft’s strategy and execution as it navigates a shifting energy landscape.
Additionally, the investor base broadened, with the number of individual shareholders rising by more than a quarter in the six months leading to November, reaching 1.13 million people. Rosneft’s leadership framed this growth as additional evidence of sustained investor trust in the company’s fundamentals and long-term prospects (Rosneft press release, 2023).