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Rosneft Q1 net income went up by 30.2%

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Staff writer ▼ | June 27, 2015
Rosneft   Sales proceeds amounted to $21 billion

Rosneft published consolidated IFRS financial results for Q1 2015. Net income in RUB terms went up by 30.2%. There was dontinuing increase in free cash flow by 7.4% and gross debt went down by 7.4% starting the year of 2015.

Sales proceeds amounted to RUB 1,288 billion ($21 billion). In condition of decline in world prices (-12% in ruble terms compared to Q1 2014) the Company efficiently allocated its resources and used high-margin distribution channels which resulted in compensation of decrease in revenue comprising 6.3% compared to Q1 2014.

Adjusted earnings before interests, tax and depreciation (EBITDA) was RUB 286 billion ($4.5 billion). In Q1 2015, the margin of adjusted EBITDА was 22% against 21% in Q1 2014. In this regard the Company continues taking measures for effective regulation and reduction of operating and administrative costs. Based on performance in Q1 2015, administrative costs decreased by 10% if compared to Q4 2014.

Net income of the Company in Q1 2015 was RUB 56 billion ($1 billion), which exceeds net income 3 in Q1 2014 by 30.2%.

The level of net debt in dollar terms decreased by 4.8% compared to Q1 2014. In Q1 2015, the Company made an early final repayment of approx. $7.2 billion, including accrued interest, under the bridge loan facility raised to finance the acquisition of TNK-BP. Total consolidated debt in dollar terms decreased by 7.4% for Q1 2015.

The positive free cash flow reached RUB 130 billion in Q1 2015 (7.4% more than in Q1 2014) due to effective measures for control over the working capital turnover, that consistently provides the repayment of all the financial obligations when due.

The board recommended for payment a dividend of 8.21 RUR per share on 2014 results that is 25% of net income under IFRS.

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