In Q3 2017 Rosneft revenues amounted to RUB 1,496 billion ($26.2 billion).
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Revenues increased by 6.9% QoQ on the back of further quality improvement in the production process, optimization of the sales structure with stable sales volumes and partly positive costs’ dynamics in the operating segment.
In 9M 2017 revenues amounted to RUB 4,305 billion, rising by 22.9% YoY (76.3 billion in $terms, increase by 43.7%) thanks to the integration of new assets, improvements in the sales mix, expanding trading activity and some positive implications from macro-economic indicators during the last weeks of the period.
Thus, in Q3 2017 EBITDA increased by 21.2% QoQ up to RUB 371 billion ($6.3 billion).
Sales volumes increase, efficient cost control as well as synergies from the integration of new assets were the main positive factors boosting EBITDA in 9M
017 that reached RUB 1,010 billion
($17.3 billion).
In particular, the approximate synergy effect achieved by the company as a result of Bashneft acquisition already exceeded expectations at RUB 40 billion.
Growth in 9M 2017 EBITDA was at 10.6% YoY (+28.1% in $terms) despite the growth in excise taxes, tariffs (+3.5-4.0% in part of pipeline transportation in 9M 2017) compared to a sharp slowdown in the inflation rates.
At the same time, in conditions of Large tax maneuver and the local market regulations, refining business of the company continued to put significant pressure on the financial performance of the company.
In accordance with the requirements of FAS, the company also continued to ensure the price stability at the gas filling stations. Currently the company continues to keep leading position in pricing policy at the Russian retail market.
Q3 2017 EBITDA margin increased by 2.8 p.p. QoQ up to 24.0%, while 9M 2017 EBITDA margin improved up to 22.7% compared with 22.0% in 1H 2017.
Net income attributable to Rosneft shareholders amounted to RUB 47 billion in Q3 2017 and RUB 122 billion in 9M 2017. ■