Russian state owned oil giant Rosneft delivered “one of the best performance in the industry” this quarter, according to Igor Sechin.
The chief executive said delivering key upstream projects while developing trading and commercial hubs “ensured” that revenue and Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) both grew year-on-year.
Rosneft also managed to use the three months up to the end of September to make key strategic acquisitions, including in Siberia.
Mr Sechin added: “The focus on expanding the presence in the key energy consuming regions and on entering new first-class upstream projects will strengthen the company’s position as a leader on the global commodity markets.
“Gradual oil price recovery lays the groundwork for an advanced growth in their value and a substantial increase in the capitalization of the acquired businesses – internal rate of return of these projects including the prepayments substantially exceeds 20%.”
Q3 revenues amounted to $26.2billion an increase of 6.9% on the same period last year.
The increase was put down to quality improvement in the production process, optimization of the sales structure with stable sales volumes and partly positive costs’ dynamics in the operating segment.
Income before tax was $1.4billion, up quarter on quarter from last years Q3 of $840million.
Mr Sechin said: “With intense business development the liquidity profile is maintained at the level that ensures high company’s stability.
“Furthermore, the deals which were completed recently with the participation of the global partners in the upstream projects proved the quality and the opportunity of additional capitalization of our resource base that provides supporting evidence of fundamental investment prospects of the company.
Rosneft said that given the large number of prospective upstream projects planned for launching in 2017-2018 and the end of “Opec plus” agreement planned in the first half of 2018, the capital expenditures increased to $3.8billion in the quarter.