|Bid||411.30 x 610000|
|Ask||411.45 x 268000|
|Day's Range||410.75 - 416.95|
|52 Week Range||390.75 - 522.80|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||11.08|
|Earnings Date||Aug 21, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||7.72|
Russia's Rosneft, one of the world's top oil producers and exporters, has notified customers that future tender contracts for oil products will be denominated in euros not dollars, five trading sources told Reuters. Rosneft, which accounts for over 40% of oil output in Russia, produced 45.8 million tonnes of oil products at home in the first six months of this year - from diesel and gasoline to fuel oil and petrochemicals. The bulk of oil products for export are sold at tenders: Rosneft holds annual tenders as well as a number of spot or short-term tenders, with BP, Glencore, Trafigura, Vitol and Cetracore among top buyers.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Rosneft PJSC’s second-quarter net income fell as the Russian giant suffered the effects of weaker oil prices and production cuts, but the decline was less severe than analysts expected.While the results show the impact on Rosneft of the Druzhba crisis, in which millions of barrels of exports to central Europe via the Soviet-era pipeline were contaminated with chemicals, shares rose as investors eyed the company’s pledged payout.“Rosneft shares are growing on the dividend recommendation for the first half of the year, which turned out higher than expected,” Angelina Glazova, an oil and gas analyst at Atonline Ltd., said by phone. The dividend size was supported by the company’s robust net income, she added.Rosneft’s shares increased as much as 2.2% to nearly 417 rubles ($6.30) after the results were published and were trading at 413.65 rubles as of 12:02 a.m. Moscow time, the highest level since August 5.Rosneft usually pays about 50% of its net income in dividends, means that higher than expected profit creates higher returns for shareholders. The company’s board recommended an interim dividend of 15.34 rubles per share, based on results of the first half of the year, it said in a statement.The company reported second-quarter net income of 194 billion rubles, about 15% lower than a year earlier, but still above the highest analyst estimate. Revenue increased slightly to 2.135 trillion rubles, beating the Bloomberg consensus.The financial performance of Russia’s largest oil producer was generally weaker than in 2018 amid lower oil prices and production cuts. However, its profit beat analyst estimates due to one-off incidents, Ildar Davletshin, a London-based energy analyst at Wood & Co., said by phone.“Rosneft’s net income received support from non-operational factors, including a lower income tax rate and interest payments,” he said. “Operational results, like EBITDA, were largely in line with expectations.”The Russian crude producer suffered the greatest damage to its financial results from the Druzhba crisis. Rosneft pumped 4.62 million barrels of oil a day in the second quarter of 2019, down 2.7% from the preceding one due to the pipeline incident and output cuts agreed with the Organization of Petroleum Exporting Countries.Russia’s oil flows to Europe via Druzhba were first interrupted in April as European clients refused to take affected barrels. The clean-up lasted into July and for Rosneft the shutdowns were exacerbated by a spat with pipeline operator Transneft PJSC.“The influence of external one-offs should be noted, which limited the capacity to grow production in 2Q 2019,” Chief Executive Officer Igor Sechin said in a statement.To contact the reporters on this story: Olga Tanas in Moscow at email@example.com;Dina Khrennikova in Moscow at firstname.lastname@example.orgTo contact the editors responsible for this story: James Herron at email@example.com, Helen RobertsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Russia’s top oil producer Rosneft has reported a fall in second-quarter net profit as a shutdown of the country’s most important export pipeline to Europe hurt earnings. The 15 per cent fall in profit ...
Foreign joint venture partners with Venezuelan state-owned oil company PDVSA are concerned the latest set of U.S. sanctions on the South American country could disrupt their operations, three industry sources said. The Trump administration last week froze all Venezuelan government assets in the United States and U.S. officials ratcheted up threats against companies that do business with Venezuela. The White House imposed sanctions on Venezuela's oil industry in January in an effort to oust socialist President Nicolas Maduro, whose re-election in 2018 is viewed by much of the Western Hemisphere as illegitimate.
Sovereign debt issued by countries ranging from the US to Germany and the UK stabilised after dramatic price rallies on Monday and Wednesday. The strong move was prompted by indications that some of the world’s leading economies were faltering amid a deepening trade dispute between the US and China.
economic pressure on Caracas, according to people familiar with the shipping arrangement. The lifeline has given Moscow unprecedented leverage over the crisis-hit South American nation, frustrating efforts by Washington and the EU to push the socialist president out and make way for opposition leader Juan Guaidó. Data seen by the Financial Times show that Rosneft supplied Venezuela’s entire imports of petrol in June, as other suppliers fell away.
India's oil imports from Venezuela surged to about 475,200 barrels per day (bpd) in June, more than double the previous month and highest in 21 months, data from shipping and industry sources showed. Washington imposed sanctions on Venezuela's state oil company PDVSA in January to put pressure on socialist President Nicolas Maduro. Private refiners Reliance Industries RELI.NS and Nayara Energy, part owned by Russian oil major Rosneft ROSN.MM, are the only Indian buyers of Venezuelan oil.
Russian President Vladimir Putin has asked his government to justify giving tax breaks to Russian oil major Rosneft for developing a Siberian oilfield, a document published on the Kremlin website showed. Rosneft's request for tax deductions for developing Priobsky, its biggest oilfield, was approved by the government, the Kommersant newspaper reported in May, citing sources.
Russia's national flag carrier Aeroflot is planning to add nine medium-haul A320 Neo Airbus planes for about $870 million to its fleet next year, procurement documents show. The plan includes leasing six Airbus A320-251N for 12 years - the bidding process for which was launched on Monday - and three A321-251NX jets. Aeroflot has 367 aircraft in its fleet, including 248 medium-haul A320 and Boeing 737 jets.
(Bloomberg Opinion) -- Italian Interior Minister Matteo Salvini, leader of the nationalist-populist League party, is having a hard time waving off accusations that one of his close aides plotted to get Kremlin funding for the political force. It should be clear by now that such aid is readily available to European populist parties. If voters don’t see it as a deterrent – and so far they don’t – then it’s only going to become more brazen. The first report of a Moscow meeting between Gianluca Savoini, Salvini’s former spokesman, and some Russians with high-level government contacts appeared in the Italian magazine L’Espresso in February. At the meeting, an oil deal was supposedly discussed: The Russian state-owned oil company Rosneft would sell some Russian diesel fuel to an Italian intermediary at a discount; the intermediary would then sell it on to Italy’s Eni SpA and use the profit to fund the League.Last week, Buzzfeed published what it said was the transcript of a secret recording of that meeting. It contains some titillating details about how the proposed deal would be structured to hide the Russian involvement, the amount of fuel to be sold (250,000 tons a month for a year), the size of the discount (4%) – and a Russian demand for a kickback. Buzzfeed calculated the Italians stood to receive about $65 million so the League could “sustain a campaign.”As in February, there’s still no evidence that the deal actually took place, that the League received any Russian money or that Salvini even knew about the negotiations. An Italian lawyer, Gianluca Meranda, has since come forward claiming that he’d been present at the meeting and that the transaction hadn’t been completed. And Salvini has said that he’s “never taken a ruble, a euro, a dollar or a liter of vodka in financing from Russia.”As Samuel Greene, director of the Russia Institute at King’s College London, pointed out in a recent Twitter thread, it’s natural for Putin to offer enticements to potential allies, and he doesn’t much care about European laws (or Russian ones, for that matter). “What should be much more surprising and troubling,” Greene wrote, “is the increasing number of players in our own political establishments who are willing to sell out -- politicians and voters who no longer think our own rules matter. That's the threat.”As I’ve written before, European populists are perfectly aware of the toxicity of accepting Russian money in any form. In some countries, Italy among them, political slush funds are not unheard of – but Russian interference in the 2016 U.S. presidential election has drawn so much attention, including from intelligence services, that accepting the Kremlin’s financial aid increases the probability of getting caught. That explains Salvini’s obvious caution – and that of Brexit campaign funder Arron Banks, who apparently turned down offers of lucrative Russian deals. And yet the aftermath of the sting operation that brought down the Austrian government just before the European Parliament election in May suggests voters may increasingly be willing to shrug off such Russian involvement. Austrian Vice Chancellor Heinz-Christian Strache, then leader of the Freedom Party, the junior partner in the ruling coalition, was recorded holding talks with a woman he thought was a Russian billionaire’s niece. He discussed a plan to buy Austria’s biggest tabloid newspaper to ensure favorable coverage for his party and told her she could make an illegal donation to the party through a special foundation. Then-Chancellor Sebastian Kurz forced Strache to resign and dissolved the coalition. But the Freedom Party’s support didn’t collapse. In the European Parliament election, it won 17.2% of the vote, less than the 20.5% it garnered in the 2017 national election but still a surprisingly high percentage under the circumstances.Strache himself received the second highest number of votes among Freedom Party candidates and won one of the party’s three European Parliament seats. He refused to take it, saying he didn’t want to move to Brussels. Indeed, he only paid a political price because his coalition partner, Kurz, used the scandal to shake off an uncomfortable alliance with the far right. The Freedom Party is polling close to 19% in the run-up to the national election in October.The League’s polling numbers are on the rise despite the Russia scandal. It’s conceivable that populist voters simply don’t care about the Kremlin scare, either because they’re generally sympathetic toward Russian President Vladimir Putin (who cleverly echoes hard right rhetoric as he seeks allies in Europe) or because they write off media reports of Russia scandals as fake news. The more Russia scandals hatch and pass without consequences, the more the latter perception will be reinforced: one can’t cry wolf too many times. Voters also know these parties have a harder time gaining funding and may simply be willing to ignore such freelancing if it helps their larger anti-establishment cause. It has long been clear that legal forms of aid, such as French nationalist Marine Le Pen’s Russian bank loans, are fine with such politicians’ supporters. The Brexit Party’s voters have also brushed off concerns about Russian interference in the 2016 referendum. Ultimately, if voters keep showing they don’t mind politicians’ Kremlin links, all the politicians need to do is set up legal structures to receive Putin’s aid with a minimum of risk. That may not be straightforward, but it’s more a technical task rather than a political one.So far, the European establishment has failed to impress on a significant number of voters the idea that Putin is a threat. That’s part of its general vulnerability. Whether or not the Kremlin may becomes an agenda-setting player in European politics, the record so far suggests it will continue to look for open doors and increasingly find them. To contact the author of this story: Leonid Bershidsky at firstname.lastname@example.orgTo contact the editor responsible for this story: Therese Raphael at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Leonid Bershidsky is Bloomberg Opinion's Europe columnist. He was the founding editor of the Russian business daily Vedomosti and founded the opinion website Slon.ru.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Russian oil production fell close to a three-year low in early July, as output was undermined by a row between Russian oil pipeline monopoly Transneft and the country's biggest producer Rosneft. Transneft curbed oil intake from Yuganskneftegaz, Rosneft's main upstream unit, the oil producer said, hurting production that has already been depressed by an oil contamination crisis.
Russian state-owned pipeline monopoly Transneft criticised oil producer Rosneft on Monday, alleging it had dragged its feet over quality controls and making unsubstantiated damages claims. Transneft said that Rosneft had been unwilling to help resolve a contaminated oil crisis in the Russian Druzhba export pipeline which began in late April, and that the oil producer was seeking compensation from it without any grounds. Rosneft said that it had read Transneft's statement with "regret" and "bewilderment".
(Bloomberg Opinion) -- They got there in the end. After a fraught period when nobody could agree on when to meet, OPEC and its friends will gather on July 1-2 in Vienna. All 24 oil ministers will have to decide whether to renew their commitment to output cuts, which have have already run five times longer than originally intended. OPEC’s three biggest members – Saudi Arabia, Iraq and the United Arab Emirates – are all willing to continue the policy of reduced production. But the big question is what Russia will do.Though it has a lot of reason to back away from the deal, it will continue to pay lip service to the agreement. President Vladimir Putin’s wider ambitions to rebuild the country’s geopolitical role in the Middle East will outweigh objections from the boss of the country’s biggest oil company and any evidence that the cuts are undermining economic growth. For Russia, the participation in OPEC+ output restraint is less about the needs of its oil industry and more about its President's relationship with his new ally in the region, Saudi Crown Prince Mohammed bin Salman. Putin has a lot at stake, with wider trade and investment deals still being negotiated. Continuing to support Saudi efforts to underpin oil prices can only help those discussions.It’s not as if Russia has been stretching itself to meet lower production goals. True, its output was below its target in May. But that was only the first time that has happened since oil producers established their policy of restraint in 2016. The broader picture is that Russia’s reductions have been minimal.While Saudi Arabia implemented its agreed production cut immediately and in full in January 2017, Russia dawdled, blaming cold winter weather that it said prevented it from shutting wells. The same pattern has emerged after the targets were reset for the latest round of cuts, which came into effect at the start of 2019. Russian production tailed off only because of the discovery of contaminated crude in its main export pipeline to Europe. Now that the tainted oil crisis looks to have passed, output should rise again in the coming weeks.If compliance has almost always been minimal at best, why not ditch the policy? The country’s biggest oil company wouldn’t mind. The loudest critic of Russia’s alignment with OPEC has been Igor Sechin, the boss of state-controlled oil giant Rosneft PJSC. He warned earlier this month that extending the deal would cause Russia to cede global market share to the U.S.His complaints are a bit rich – in percentage terms, Rosneft cut output much less than either of its nearest rivals, Lukoil PJSC and Surgutneftegas PJSC, during 2017 and 2018, and was quick to boost it again as oil prices climbed in the second half of last year. Still, he has a point.While Saudi Arabia and Russia are both producing less oil now than they were when the OPEC+ group was formed in late 2016, U.S. output has soared, rising by more than a third as producers tapping the country’s vast shale formations have bounced back from the price collapse of 2014-15.Abandoning the deal would allow Russian output to grow – Rosneft and other companies have a string of new projects to bring into production. The cost of saying farewell to OPEC+ policy would inevitably be lower prices for every barrel they pump. The output cut was one of the factors that undermined Russia’s economic growth in the first quarter, according to Kirill Tremasov, a former economy ministry official who’s now an analyst at Loko-Invest in Moscow. That might give Putin pause for thought when it comes to instructing his oil minister for the Vienna OPEC+ meeting.But it is unlikely to change his mind. And he has a handy justification for insisting on reduced production – oil demand growth is starting to look more fragile. Russia can also demand flexibility to raise production if market conditions allow. That would be noteworthy, given that Saudi Arabia is producing 620,000 barrels a day less than it is permitted under the deal and might expect first dibs at any production increase.The latest forecast from the International Energy Agency shows global oil inventories falling at a rate of 900,000 barrels a day in the third quarter. This assumes the output restraint is maintained and that demand growth doesn’t evaporate, as it did in earlier periods. That may provide some leeway to allow output to rise, but it won’t last long.By the time the OPEC+ group meets, the G20 summit in Japan will have concluded and some of the U.S. trade relationships may have become a little clearer. But there will still be plenty of uncertainties for ministers to grapple with, not least the rising tensions in the Middle East.So even if ministers can reach a deal for the rest of this year, don’t expect them to even start to tackle what they might do in 2020. As I have argued, if demand growth turns out to be much weaker than expected producers will have make even deeper cuts. That may finally prompt Putin to decide that he’s better off without the goodwill of the Saudi crown prince. To contact the author of this story: Julian Lee at firstname.lastname@example.orgTo contact the editor responsible for this story: Jennifer Ryan at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Julian Lee is an oil strategist for Bloomberg. Previously he worked as a senior analyst at the Centre for Global Energy Studies.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Igor Sechin, CEO of Russian oil giant Rosneft, accused the United States of using energy as a political weapon and said on Thursday that the U.S. golden age of energy had become an "era of energy colonialism" for other countries. Speaking at an economic forum in St Petersburg, Sechin said a third of global oil reserves were restricted by U.S. sanctions on Iran and Venezuela and that Washington was losing moral ground as a self-styled leader of open markets.
Russia’s largest oil producer Rosneft is in talks with the government for possible compensation for losses in case OPEC and its Russia-led non-OPEC partners decide to extend the production cut deal through the end of the year
Russian oil giant Rosneft's CEO Igor Sechin said on Tuesday the company was discussing possible compensation from the government in the event that a global deal to cut supply is extended, Russian state news agencies TASS and RIA reported. The Organization of the Petroleum Exporting Countries, Russia and oil exporting allies have reduced output by 1.2 million barrels per day since Jan. 1 as part of the deal. Sechin, one of President Vladimir Putin's closest allies, questioned the logic of Russia cutting output further as part of an extended deal, saying the United States could raise production and take Russia's market share.
Russian airline Aeroflot has scaled back the number of Sukhoi Superjet 100 flights it operates after one of its planes made a crash-landing last month, killing 41 people, according to data provided by a flight tracking website. Flightradar24 data shows Aeroflot has also at times substituted Airbus or Boeing planes for the Superjet, the first new passenger jet developed in Russia since the Soviet Union collapsed. Fallout from the crash risks undermining the aircraft's reputation at a time when Russia is promoting another domestically made passenger plane, the M-21, as a rival to Boeing and Airbus.