Russian oil majors are reported to have posted their biggest quarterly profits in nearly a decade. This, after the invasion of Ukraine caused a rise in oil prices, which more than offset by other restrictions on the country’s oil exports.
The combined net profit of Rosneft PJSC (ROSN), Lukoil PJSC (LKOH) and Gazprom Neft PJSC (GAZP), between January and March, is estimated at $8.86 billion, according to calculations by Moscow-based SberCIB Investment Research. It would be the highest profit since the third quarter of 2013, when profits were boosted by Rosneft’s acquisition of TNK-BP. According to data compiled by Bloomberg.
Russian energy giants have been forced to offer deep discounts on Russian crude as some buyers have refused supplies while other countries, notably the United States and the United Kingdom, have banned it.
However, thanks to a broader rally in oil markets to exceed $100 a barrel, the value of exports remained higher than for most of 2021, according to data from the country’s Ministry of Finance.
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Russia has also been able to find new markets for some of its barrels, keeping its seaborne crude exports strong.
Most of Russia’s oil and gas producers will likely refrain from disclosing their first-quarter financial results, according to SberCIB Investment Research.
Record first-quarter earnings indicate the potential for a high dividend payout in 2022, according to SberCIB Investment Research. however, It is unclear whether major Russian producers will distribute the additional 2022 dividend this year, given the tight financial constraints.
Lukoil, Russia’s largest oil company, has postponed its decision on its final dividend for 2021 until the end of this year due to an “unstable business environment and restrictions on clearing and banking systems.”
For its part, Gazprom Neft has recommended to its shareholders to approve the final dividend for 2021 at its annual meeting next month, while Rosneft’s board will publish its decision this week.
With information from Bloomberg Line.
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