Rosneft's Q1 income jumps but company warns attacks may impair assets
Rosneft's First-Quarter Financial Performance and Risks
Strong Earnings Driven by Market Factors
MOSCOW, June 1 (Reuters) - First-quarter net earnings of Russia's leading oil producer Rosneft jumped sevenfold from the previous three months due to a rally in global oil prices, foreign exchange moves and one-offs, the company said on Monday.
Warning on Asset Impairments
However, it warned that attacks on its infrastructure may lead to asset impairments and weaken its reported profit.
Impact of Geopolitical Tensions
Ukraine has intensified drone strikes on Russian energy infrastructure in recent months, aiming to undercut Moscow's revenue.
Market Volatility and Operational Risks
CEO Commentary on Market Conditions
Rosneft CEO Igor Sechin said the oil market has been extremely volatile this year as the Middle East conflict sent prices surging following a weak start to 2026.
Disruptions and Attacks on Infrastructure
At the same time, the Russian oil industry has faced operating risks, with numerous disruptions at oil exporting terminals and attacks on Rosneft's refineries, depots and production facilities.
Potential Financial Impact
"Given the above, the company is assessing the need to provision for potential asset impairments, which could adversely impact financial results," he said in a statement.
Financial Results Breakdown
Net Income and Revenue Growth
Rosneft said its January through March net income increased to 115 billion roubles ($1.60 billion) from 16 billion roubles in October to December.
It did not elaborate on the one-offs that affected the results.
Global Oil Market Context
Global oil majors have benefited from multi-year highs of oil prices, which have jumped due to the war in Iran and closure of the Strait of Hormuz, a major conduit for global oil and liquefied natural gas exports.
Revenue in the first quarter rose by 4.3% from the previous three months to 2.032 trillion roubles, the company said.
Production Output Details
The company, which accounts for around 40% of Russia's total oil production, also said its oil and gas condensate output in the first quarter edged down by 0.4% from October-December to 3.74 million barrels per day due to harsh weather in Siberia, its production heartland.
Exchange Rate Information
($1 = 71.9500 roubles)
Reporting Credits
(Reporting by Olesya Astakhova and Vladimir Soldatkin; Editing by Sonali Paul)
