Russia's largest oil producer OAO Rosneft (ROSN.RS) Monday reported its fourth-quarter net profit more than doubled on higher global oil prices and bigger export volumes, and said it expects tax breaks for a key East Siberian field to remain in place.
London-listed Rosneft said net profit under U.S. Generally Accepted Accounting Principles rose in the three months ended Dec. 31 to $1.67billion, from $775 million in the fourth quarter of 2008. This was below a Dow Jones Newswires poll of eight analysts' estimates, which had predicted $1.80 billion.
Revenue increased 35% to $14.57billion from $10.80 billion a year earlier, as the Brent blend averaged $75.72a barrel between October and December, compared with $57.01 a barrel in the same period a year earlier.
Rosneft's 7.4% year-on-year increase in oil output in the three months to 2.275 million barrels a day--primarily due to the launch of the Vankor field in August--also helped the top line.
Rosneft's shares have lost close to a fifth of their value since a one-year high reached Jan. 11, following a proposal by Russia's finance ministry to revoke a zero export duty on oil produced at some East Siberian oil fields, including Vankor.
"With the additional investment this decision facilitates, the multiplier effect the investment has throughout the economy in the nearer term, and future tax revenues from resulting production in the medium to longer term, we're confident the zero export duty will remain in place for some time," Rosneft's Chief Financial Officer Peter O'Brien told Dow Jones Newswires.
Earnings before interest, taxation, depreciation and amortization, or Ebitda, totaled $4.01billion in the period, up from just $32 million a year earlier.
Rosneft's stock more than doubled last year. At 1342 GMT, the company's GDRs were trading down 2.6% at $7.6each in London, down from a one-year high of $9.3 reached Jan. 11.