Rosneft profits more than double

26th October 2010, Comments 0 comments

Russia's leading oil producer Rosneft on Tuesday said its third quarter earnings more than doubled on the back of increased output and higher crude prices.

Third quarter net profit came to 2.5 billion dollars (1.8 billion euros), up some 120 percent from the same period last year.

The company pointed to increased production of crude oil and refined products as well as higher prices.

"The quarterly results point to solid growth potential for the company," chairman Edward Khudainatov said in a statement.

He said oil production is expected to increase this year by 5.5 to 6.0 percent from a previously estimated 4.5 percent.

Rosneft said that in the first nine months of 2010 net income jumped 57.3 percent to 7.6 billion dollars, with sales up 41.6 percent at 45.7 billion dollars.

Regional Development minister Viktor Bassarguine said Tuesday that Rosneft planned to invest 764 billion rubles (18 billion euros, 25 billion dollars) to develop the giant Vankor oil and gas field in northern Russia.

The government last week unveiled a sweeping privatisation scheme that included the possible sale of 15 percent of its shares in five years and a move to relinquish control from 2015.

The government currently has a stake of 75 percent in Rosneft.

© 2010 AFP

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