Translation. Region: Russian Federation –
Source: Rosneft – An important disclaimer is at the bottom of this article.
HYDROCARBON PRODUCTION – 246.6 MILLION TOE. LIQUID HYDROCARBON PRODUCTION – 181.1 MILLION T. GAS PRODUCTION – 79.6 BILLION CUBIC M. 2P PRMS HYDROCARBON RESERVES – 11.5 BILLION TOE, REPLACEMENT – 122%, RESERVE PROTECTION – 49 YEARS. REVENUE – RUB 8,236 BILLION. EBITDA – RUB 2,173 BILLION. FREE CASH FLOW – RUB 700 BILLION. CAPITAL EXPENDITURES – RUB 1,360 BILLION.
PJSC NK Rosneft (hereinafter referred to as Rosneft or the Company) publishes its results for the 12 months to 2025, prepared in accordance with International Financial Reporting Standards (IFRS).
| 12 months 2025 | 12 months 2024 | % change | |
|---|---|---|---|
| billion rubles | |||
| Revenue from sales and income from associates and joint ventures | 8 236 | 10 139 | (18.8)% |
| EBITDA | 2 173 | 3,029 | (28.3)% |
| Net profit attributable to shareholders of PJSC NK Rosneft | 293 | 1,084 | (73.0)% |
| Capital expenditures | 1,360 | 1,442 | (5.7)% |
| Adjusted free cash flow | 700 | 1,295 | (45.9)% |
Commenting on the results for the 12 months to 2025, Chairman of the Management Board and Chief Executive Officer of Rosneft Oil Company I.I. Sechin noted:
"In 2025, the Russian oil industry found itself at the epicenter of a 'perfect storm', arising from the confluence of unfavorable market conditions, stringent domestic macroeconomic conditions, and an aggressive geopolitical environment.
Despite these challenges, the industry continues to play a leading role in supporting socioeconomic development and generating revenue for the Russian budget. Its contribution comes not only from the mineral extraction tax (MET) and the additional profit tax (APT), but also from other fiscal payments by oil companies (profit tax, excise taxes on petroleum products, property tax, etc.), as well as from a wide range of revenues from related industries (metallurgy, mechanical engineering, oilfield services, construction, transportation, electricity generation, etc.). Furthermore, significant revenue sources for the Russian budget include personal income tax and insurance premiums for employees in the oil and related industries, as well as dividends from oil and gas companies. The oil industry's total contribution to budget capacity is twice the oil and gas revenue figure calculated by the Ministry of Finance.
In the face of a shortage of ruble liquidity, the industry essentially subsidizes the domestic market with foreign currency, which maintains the stability of the ruble exchange rate and serves as a factor in curbing inflation.
The industry's strategic importance makes it a primary target for sanctions pressure: blocking US sanctions have been imposed on major oil companies, and pressure from European countries, including embargoes and price caps, is growing. Systemic pressure on key buyers of Russian energy is being implemented through sanctions against the tanker fleet and mass denials of vessel insurance, which has led to a tenfold increase in insurance premiums. The situation is exacerbated by the increased risk of detention or direct forcible seizure of vessels. In March 2026, freight rates for transporting Russian oil from the Baltic Sea to India exceeded $20 per barrel. This represents a tenfold increase in logistics costs compared to early 2022, when delivery to traditional European markets cost around $2 per barrel.
I would like to specifically note the blocking of cross-border payments, as the Bank of Russia has yet to create a sanctions-resistant international settlements system, and Russian exporters and their counterparties are left to find solutions for foreign trade settlements themselves. This has led to a multiple increase in total payment and currency conversion costs compared to pre-crisis levels.
Along with financial, logistical, and technological barriers, the industry is destabilized by terrorist attacks on oil infrastructure facilities: refineries, storage facilities, gas stations, terminals, and pipelines.
The current market and geopolitical environment significantly impacted the Company's financial performance in the reporting year. Falling oil prices, widening discounts, production restrictions under the OPEC agreement, and Transneft's systematic restrictions on crude oil intake into the pipeline system, coupled with the strengthening of the national currency, led to a decline in sales revenue. Outpacing inflation in tariffs from natural monopolies and the increasing complexity of cross-border payments and logistics increased expenses, negatively impacting EBITDA for 2025.
The Bank of Russia's extremely high key rate is noteworthy: its average level in 2025 exceeded 19%. This led to a significant increase in debt servicing expenses, which in the reporting year were more than four times higher than in 2020, with net debt remaining at a comparable level. The tax rate increase put additional pressure on net profit. Unlike other players in the sector, the Company did not have to recognize significant losses in Q4 2025 following the imposition of blocking US sanctions, thanks to prudent management decisions to proactively minimize its presence in unfriendly jurisdictions.
The current year remains highly volatile. After two months of moderately low prices, the oil market reacted sharply to the escalation of the conflict between the US and Iran and the resulting de facto blockade of the Strait of Hormuz. The impact of the current price hike on oil industry revenues, which is largely offset by rising freight, insurance, and currency conversion costs, cannot be overestimated. The current beneficiaries of the oil price hike are primarily logistics, transportation, insurance companies, and credit institutions.
In the current environment, the Company is focusing on improving its operational efficiency and optimizing costs. Its project portfolio is continuously monitored and ranked. Capital expenditures were reduced slightly during the reporting year, while the Company continued to generate free cash flow. Free cash flow has remained positive for 22 consecutive quarters.
Rosneft's business plan for 2026 is based on conservative macroeconomic assumptions, including an oil price of $45 per barrel, and provides for a reduction in the debt burden in the absence of new borrowings.
Despite the negative external environment, shareholder interests remain one of our top priorities – Rosneft has been paying dividends continuously since 1999. The shareholders' meeting at the end of 2025 approved interim dividends for the first half of 2025 in the amount of 11.56 rubles per share. I note that over the past year, the number of our shareholders has grown by almost 170,000 to 1.67 million.
Operating indicators
Exploration and production
Liquid hydrocarbon production in 2025 amounted to 181.1 million tonnes (3.69 million barrels per day), including 46.4 million tonnes (2.2% q/q) in Q4 2025. This change is due to changes in oil production quotas in accordance with decisions of the Russian Government.
The Company's gas production in 2025 amounted to 79.6 billion cubic meters (1.33 million barrels of oil equivalent per day), including 21.3 billion cubic meters (12.4% q/q) in Q4 2025. This increase was due to scheduled maintenance at key assets. The Company's primary goal for the near future is to maintain gas production at current levels.
As a result, the Company’s hydrocarbon production in 2025 amounted to 246.6 million tonnes of oil equivalent (5.02 million barrels of oil equivalent per day).
In 2025, production drilling progress exceeded 11.8 million meters, with approximately 3,000 new wells commissioned, 74% of which were horizontal.
In 2025, Rosneft completed 1,200 linear kilometers of 2D seismic surveys and 3,700 square kilometers of 3D seismic surveys onshore in the Russian Federation. Forty-nine exploration wells were tested with a success rate of 90%.
Highly effective geological exploration enabled the Company to discover six fields and 112 new hydrocarbon deposits in 2025, with reserves of 0.3 billion tonnes of oil equivalent (BTOE) in the AB1C1 B2C2 category. As a result, Rosneft's hydrocarbon reserves, according to the Russian classification, totaled 21.7 billion tonnes of oil equivalent (BTOE) at the end of 2025 (BTOE).
Based on the results of a reserves audit conducted in accordance with the international PRMS (Petroleum Resource Management System) classification, the Company's 2P category hydrocarbon reserves amounted to 11.5 billion tonnes of oil equivalent. The replacement of production by incremental 2P reserves amounted to 122%, with a reserve life of 49 years.
Recycling
In 2025, oil refining volume in Russia amounted to 75.7 million tons. The decrease in refining volumes was due to repair and restoration work, as well as the optimization of refinery capacity, taking into account price conditions, logistical constraints, and demand.
Rosneft is continuously working to maintain a high level of reliability at its oil refining assets. Specifically, the Company supplies its refinery process units with its own catalysts, which are necessary for the production of high-quality motor fuels. In 2025, more than 2,200 tons of diesel fuel and gasoline fraction hydrotreating catalysts, as well as protective layer catalysts, were produced. Rosneft enterprises also produced 140 tons of gasoline reforming catalysts and over 250 tons of hydrogen production catalysts, petrochemicals, and adsorbents.
Maintaining a stable supply of high-quality motor fuel to Russian consumers is one of Rosneft's key priorities. In 2025, 40.3 million tons of petroleum products were supplied to the domestic market, including 12.3 million tons of gasoline and 16.4 million tons of diesel fuel.
Rosneft continues to actively participate in trading on the St. Petersburg International Mercantile Exchange. During the reporting year, 9.4 million tons of gasoline and diesel fuel were sold on the exchange, with the Company's share of total exchange sales of these petroleum products exceeding 30%.
Financial indicators
Against the backdrop of declining oil prices and a stronger ruble, the Company's revenue1 in 2025 decreased by 18.8% year-on-year, amounting to RUB 8,236 billion. Moreover, the rate of decline in costs and expenses was slower than that of revenue, partly due to pricing pressure caused by the outpacing inflation of tariff indexation for natural monopolies. As a result, EBITDA in 2025 decreased to RUB 2,173 billion. The EBITDA margin was 26%.
Net profit attributable to Rosneft shareholders in 2025 amounted to RUB 293 billion. The high key rate of the Central Bank of the Russian Federation continues to have a significant negative impact on this indicator. Furthermore, the increase in the corporate income tax rate, non-cash and one-time factors negatively impacted the indicator's dynamics during the reporting period.
Capital expenditures in 2025 amounted to RUB 1,360 billion, a 5.7% decrease year-on-year, driven by the planned implementation of the investment program, primarily at Exploration and Production assets, based on rigorous prioritization and optimization of the investment project portfolio. Free cash flow in the reporting period amounted to RUB 700 billion.
The Net Debt/EBITDA ratio at the end of 2025 was 1.5x and continues to remain significantly below the minimum covenant value in accordance with the loan agreements.
ESG During the reporting period, the Company continued to implement measures to achieve sustainable development goals within the framework of the Rosneft-2030 strategy.
Rosneft uses the latest technologies and cutting-edge production methods to create a safe work environment and minimize the risk of occupational injuries and illnesses. By 2025, the lost workday indicator (LWIS) was reduced by 18%.
As a result of accident prevention measures at the Company's facilities, the number of process safety incidents has decreased. Specifically, in 2025, the incidence of equipment depressurization incidents with severe consequences of Level 1 (PSER-1) decreased by 50% compared to 2024.
Rosneft makes a significant contribution to the conservation of natural resources. In 2025, employees of the Company's enterprises planted 8.1 million tree seedlings of various species during reforestation activities, and over the past five years, nearly 46 million.
As part of the implementation of the Program for the Elimination of Environmental “Historical Heritage” in 2025, the area of contaminated “historical heritage” lands was reduced by 15%, and the mass of oil-containing “historical heritage” waste was reduced by 33%.
In 2025, Rosneft confirmed its leading position in sustainable development in the Russian and international oil and gas industries. The international agency World Benchmarking Alliance recognized Rosneft as the best Russian oil and gas company in four rankings focused on a just energy transition, social initiatives, and gender equality, as part of its assessment of the performance of 2,000 of the world's largest companies.
Institutional Shareholder Services, a leading international investment and consulting agency, also highly praised Rosneft's environmental performance, including the Company among the leaders in its environmental ratings. RAEX, Russia's largest non-credit rating agency, assigned Rosneft a very high ESG rating of "AA."
Following an annual review, Moscow Exchange included the Company's securities in new index calculation bases for sustainable development, including the Climate Resilience Index for Non-Financial Companies, the Moscow Exchange-RAEX ESG Balanced Index, and the Moscow Exchange-RSPP Index group.
1 Includes sales revenue and income from associates and joint ventures.
Department of Information and Advertising of PJSC NK Rosneft March 31, 2026
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