Rosneft Q3 earnings lifted by rising crude prices

MOSCOW: Russia's largest oil company Rosneft reported an 80 percent rise in third-quarter net income thanks to rising crude prices and said it had paid Iraqi Kurdistan a total of $1.3 billion in advance in 2017 for the development of its oilfields.

The Kremlin-controlled company has been expanding its foreign exposure, including in Iraqi Kurdistan, where it gained control over the oil exporting pipeline and agreed to develop oilfields, much to the chagrin of the central government in Baghdad.

Rosneft has also provided billions in U.S. dollars to Venezuelan state energy company PDVSA.

Rosneft has benefited in the third quarter from rising oil prices, with Russia's flagship Urals blend gaining 7.5 percent in rouble terms over the period.

Shares in Rosneft, in which BP owns a 19.75 percent stake, rose 0.4 percent in early trade.

The company reported a rise in third-quarter net income to 47 billion roubles ($792 million), down from a forecast of 66 billion roubles from a Reuters poll of analysts.

Rosneft July-September sales rose to 1.5 trillion roubles from 1.22 trillion roubles, in line with the poll results.

In its expansion drive, Rosneft has racked up billions of dollars of debt. It did not provide the current net debt in its earnings report on Tuesday but said at the end of the second quarter it was 2.2 trillion roubles.

Rosneft's third-quarter earnings before interest, taxes, depreciation and amortisation (EBITDA) increased to 371 billion roubles from 292 billion roubles, missing a forecast of 356.3 billion roubles.