Russia's biggest oil producer OAO Rosneft (ROSN.RS) Wednesday said net profit for the fourth quarter fell 64% as crude oil prices plunged and export duties rose to a record high.
The company said cash flow will stay positive this year at a $41 a barrel oil price, revised down from $47 a barrel. The company expects total hydrocarbon output to increase by 1% to 2% in 2009.
State-controlled Rosneft reported net profit of $775 million for the quarter ended Dec. 31, from $2.18 billion in the fourth quarter of 2007, above a Dow Jones Newswires poll of seven analysts estimates, which had predicted a net loss of $282 million.
"(Fourth quarter was) the most challenging in the Russian oil industry's history due to the sharp decline in prices coupled with unprecedently high tax rates," Chief Executive Sergei Bogdanchikov said in a statement.
Revenue was down 35% on the year to $10.80 billion from $16.49 billion, largely due lower prices for the period and a 4.7% fall in production due to the sale of a 50% stake Tomskneft.
Rosneft shares remain around 70% off their highs in June last year, hit by a decline in oil prices and a selloff in Russian equities.
At 1406 GMT, they were trading 8.6% higher at $3.6 each in Moscow. Shares have lost around one fifth of their value this year.