Rosneft recognized $888.8 mln of loss due asset transfer in Germany

Oil Materials 7 December 2022 15:52
Moscow, Russia TASS
Rosneft recognized $888.8 mln of loss due asset transfer in Germany

Rosneft has recognized a loss of 56 bln rubles ($888.8 mln) as a result of the transfer of its assets in Germany to the external management of the country's authorities, the company said, TASS reports.

"In 3Q 2022, the most significant negative impact on income came from the transfer of the Company’s assets in Germany to external management of the Federal Network Agency, which resulted in the recognition of an additional loss of RUB 56 bln. The transfer of assets also resulted in a RUB 76 bln reduction in cash," the statement said.

"The total amount of the Company's investments in these assets exceeded $5 bln, which corresponds to the sum of historical cost and investments in their expansion and development. The Сompany traditionally takes a conservative approach to asset valuation, and made provisions for the most part of the German assets value in the previous periods," the company noted.

Rosneft reported earlier that its net income attributable to shareholders under International Financial Reporting Standards (IFRS) fell by 15% in 9M 2022 year-on-year to 591 bln rubles ($9.3 bln). EBITDA rose by almost 22% in the reporting period to a record 2.014 trillion rubles ($32 bln), while revenue added 15.7% to 7.2 trillion rubles ($114 bln).

"The operating indicators dynamics as well as the prevailing price environment allowed the company to increase its revenue by 15.7% to 7,202 bln rubles. At the same time, EBITDA increased by 21.8% YoY and reached a record nine-month high of 2,014 bln rubles. EBITDA margin also rose to an all-time high of 28%," Rosneft said.