Rosneft prepares to fight sanctions as profit surges, oil output falls

|About: Rosneft Oil Company OJSC (RNFTF)|By:, SA News Editor

Rosneft (OTC:RNFTF) says it is working out a strategy for dealing with U.S. sanctions affecting the company, as it reported a nearly eightfold surge in Q2 net profit.

"Together with our partners - the world's leading oil companies - we are working on a plan to minimize" the effects of the sanctions, the company says.

Q2 profit of 171B rubles ($4.87B) beating analyst consensus for 156.7B rubles, and oil and gas sales rose 24% to 757B rubles, driving total revenue up 22% to 1.44T rubles.

Oil production fell 1.4% Q/Q to 4.13M bbl/day, after the company failed to reach an agreement with oilfield services provider Eurasia Drilling, leading it to remove rigs; combined oil and gas output fell 0.9% Q/Q to 5M boe/day.

Rosneft also says it received a $1.9B prepayment from BP in July for a long-term supply agreement of oil and products.