--Rosneft swung to profit in 2Q but Ebitda nearly halved
--The oil major's hydrocarbon output fell in the quarter due to OPEC+ agreement, while pandemic weighed on prices
--Capital expenditure for 1H was reduced from a year ago
By Jaime Llinares Taboada
Rosneft Oil Co. on Friday posted a profit for the second quarter but lower oil production and prices hit underlying performance.
The Russian oil-and-gas company recorded a net profit of 43 billion rubles ($589.9 million) for the three months ended June 30, compared with a RUB156 billion loss in the first quarter of 2020.
Earnings before interest, taxes, depreciation and amortization plunged 45% to RUB170 billion, as the company had to cut production due to the new OPEC+ agreement.
Rosneft's hydrocarbon production declined 12.2% quarter-on-quarter to 5.05 million barrels of oil equivalent per day. As a result, the company saw sales decline 22% for crude oil, 14% for petroleum products, 17% for petrochemicals and 12% for gas.
In addition, dollar-denominated realized oil prices fell 35% quarter-on-quarter as the pandemic hit energy demand.
The group also reduced investments, blaming negative market conditions and the new OPEC+ agreement which is aimed at cutting oil supply. Capital expenditure totaled RUB367 billion over the first half of the year, down 16% from the same period of 2019, Rosneft said.
However, Chief Executive Igor Sechin said prices for crude and refined products have improved, which he expects will support a recovery in the company's future performance.
Shares in London at 0844 GMT were down $0.05, or 0.9%, at $5.21.
Write to Jaime Llinares Taboada at email@example.com; @JaimeLlinaresT
(END) Dow Jones Newswires
August 14, 2020 05:03 ET (09:03 GMT)Copyright (c) 2020 Dow Jones & Company, Inc.