Transneft Reports 5% Net Profit Decline Amid Tax Hike
MOSCOW (Reuters) -Russia's oil pipeline monopoly Transneft said on Friday its net income declined around 5% last year to 287.7 billion roubles ($3.4 billion) amid rising costs and taxes.
The Russian government has increased taxes on corporate profits to try to contain its budget deficit amid high military spending. The tax on Transneft's earnings for 2025-2030 has been hiked to 40% from 20%.
Transneft, which operates Russia's 67,000 kilometre-long (42,000 miles) oil pipeline network, has said it risks running out of cash by 2026 and that it may suspend big investment projects due to the tax hike.
Revenue rose to 1.4 trillion roubles last year from 1.3 trillion roubles in 2023, the company said.
Transneft's main source of revenue is tariffs on oil and oil products shipments via its vast pipeline network. It transports more than 80% of the total oil produced in Russia.
The company said crude oil transportation volumes declined 3% last year from 2023, while oil products volumes dipped 2%.
($1 = 84.2705 roubles)
(Reporting by Vladimir Soldatkin and Olesya Astakhova. Editing by Mark Potter)
