Translation. Region: Russian Federal
Source: Rosneft – An important disclaimer is at the bottom of this article.
HYDROCARBON PRODUCTION – 121.6 MILLION TOE LIQUID HYDROCARBON PRODUCTION – 89.3 MILLION T GAS PRODUCTION – 39.3 BILLION CUBIC M EBITDA – RUB 1,054 BILLION NET PROFIT ATTRIBUTABLE TO ROSNEFT SHAREHOLDERS – RUB 245 BILLION FREE CASH FLOW – RUB 173 BILLION
PJSC NK Rosneft (hereinafter referred to as Rosneft, the Company) publishes its results for the first half of 2025, prepared in accordance with International Financial Reporting Standards (IFRS).
| |
1st half 2025 |
1st half 2024 |
% change |
| billion rubles |
| Revenue from sales and income from associates and joint ventures |
4 263 |
5 174 |
(17.6)% |
| EBITDA |
1,054 |
1 650 |
(36.1)% |
| Net profit attributable to shareholders of PJSC NK Rosneft |
245 |
773 |
(68.3)% |
| Capital expenditures |
769 |
696 |
10.5% |
| Adjusted Free Cash Flow |
173 |
700 |
(75.3)% |
Commenting on the results for H1 2025, Chairman of the Management Board and Chief Executive Officer of PJSC NK Rosneft I.I. Sechin noted:
"The first half of this year was characterized by a decrease in oil prices, primarily due to overproduction of oil. The main reason is the active increase in production by OPEC countries, including Saudi Arabia, the UAE, Iraq, Kuwait; production growth is also observed in Brazil and other countries. According to our estimates and the expectations of leading energy agencies, the surplus on the oil market in Q4 2025 will be 2.6 million barrels per day, in 2026 – 2.2 million barrels per day.
In addition, there was an expansion of discounts on Russian oil due to the tightening of sanctions by the EU and the US and a significant strengthening of the ruble, which had a negative impact on the financial results of all exporters. I would like to note that non-market formation of the national currency exchange rate ultimately leads to non-market, non-transparent pricing of oil and oil products both on the domestic and foreign markets.
I would like to separately note the outpacing inflation growth of tariffs of natural monopolies, which, against the backdrop of unfavorable market conditions, is putting additional pressure on the oil industry. Since the beginning of the year, Transneft tariffs for oil transportation have been indexed by 9.9%, petroleum products – 13.8%, Russian Railways tariffs for freight rail transportation – by 13.8%; since July 1, regulated wholesale prices for Gazprom gas have grown by 10.2%, and grid companies' tariffs for electricity transmission services – 11.6%.
Excessive indexation of tariffs regulated by the Russian Government accelerates cost inflation, contributes to the growth of the price level and is one of the reasons for the slower reduction of the key rate. Despite the decisions taken by the Bank of Russia in June-July, the rate of reduction of the rate is clearly insufficient.
One of the consequences of maintaining the key rate at an elevated level for a long time is the excessive strengthening of the ruble exchange rate, which leads to losses for both the Russian budget and exporting companies. In addition, the high rate leads to an increase in debt servicing costs, which worsens the financial stability of corporate borrowers, leads to a reduction in profits and undermines their investment potential.
In the current conditions, Rosneft forms its budget based on realistic assumptions, using an oil price of $45 per barrel. Continuous monitoring, analysis and ranking of the portfolio are conducted. We optimize production and focus on high-margin projects with a special tax regime, including Vostok Oil and Sakhalin-1, to create a source of dividend payments. At the same time, a number of other companies pay dividends by attracting debt.
For reference. Dynamics of hydrocarbon production by international companies in H1 2025 compared to H1 2024: bp (-5%), Shell (-4%), Chevron (1%, including Venezuela), Equinor (1%, target premium market – Europe), Saudi Aramco (1%, due to the introduction of free capacities putting pressure on prices and increasing debt), ExxonMobil (13%, taking into account the low tax burden based on the resource base of Guyana and the Permian Basin; target market – the USA; taking into account the tasks facing the domestic market; the company is constantly searching for resources with a projected depletion of the resource base by 2035).
Despite the negative external background, Rosneft continues to strictly adhere to its dividend policy, paying dividends continuously since 2000.
In the interests of our shareholders and in full compliance with the approved policy, in August 2025 Rosneft completed the payment of final dividends approved by the annual shareholders' meeting. The total dividend amount for 2024 was RUB 542 billion, or RUB 51.15 per share."
Operating indicators
Exploration and production
The Company's hydrocarbon production in H1 2025 amounted to 121.6 million tonnes of oil equivalent (4.99 million barrels of oil equivalent per day), including 89.3 million tonnes (3.67 million barrels of oil equivalent per day) and 39.3 billion cubic metres (1.32 million barrels of oil equivalent per day) of gas.
Some companies demonstrated growth in hydrocarbon production at the end of the reporting period, but this was due to increased production within international projects, including Venezuela, Iraq, Egypt, etc. Rosneft, working under service contracts, does not put reserves on the balance sheet and does not take into account the production of commercial oil.
The drilling meterage in production drilling in the first half of 2025 was about 6 million meters, 1.4 thousand new wells were put into operation, 74% of which were horizontal.
Onshore in the Russian Federation, in the first half of 2025, Rosneft completed 1.2 thousand linear km of 2D seismic work and 3.2 thousand square km of 3D seismic work. Testing of 17 exploration wells was completed with a success rate of 100%.
Vostok Oil Project
As part of the implementation of the flagship project "Vostok Oil" in the first half of 2025, 1.2 thousand linear km of 2D seismic exploration work and 1.5 thousand square kilometers of 3D work were completed. One well was successfully tested, drilling of another well was completed, and construction of four exploration and appraisal wells was started.
The company continues pilot development of the Payakhskoye and Ichemminskoye fields: in the first half of 2025, the drilling meterage in production drilling exceeded 62 thousand meters, 14 production wells were completed. Test production is underway at the Payakhskoye and Ichemminskoye fields, and oil is being transported by road to the Suzunskoye and Lodochnoye fields.
The construction of the Vankor-Payakha-Bukhta Sever main oil pipeline continues. As of the end of the first half of 2025, 118 thousand piles have been installed, 608 km of the pipeline have been laid at the design marks. Work on laying the backup line of the oil pipeline crossing the Yenisei River has been completed, and backfilling of the trench in the channel part is underway.
The construction of two cargo berths and a berth for the port fleet at the Port Sever Bay terminal is in the final stage of readiness. The construction of the first oil loading berth is ongoing, and work has begun on the construction of the second. The construction of the Port Sever Bay oil acceptance point and the Suzun oil pumping station is underway, and work has begun on the construction of the Payakha oil pumping station. The construction of logistics infrastructure, hydraulic structures, coastal protection, and expansion of coastal and berthing infrastructure continues.
Recycling
The volume of oil refining in the first half of 2025 amounted to 38.7 million tons. The decrease in refining volumes is due to the need for repair and restoration work, as well as the optimization of refinery loading taking into account the price environment, logistics constraints and demand. The depth of oil refining increased to 77.6%, the yield of light oil products – to 60.3%.
Rosneft is continuously working to maintain a high level of reliability of its oil refining assets. In particular, the Company provides the process units of its refineries with its own catalysts required for the production of high-quality motor fuel. In the first half of 2025, 1.3 thousand tons of catalysts for hydrotreating diesel fuel and gasoline fractions, as well as protective layer catalysts, were produced. Rosneft enterprises also produced 40 tons of gasoline reforming catalysts and 176 tons of catalysts for the production of hydrogen, petrochemicals and adsorbents. 720 tons of coked catalysts for hydrotreating diesel fuel were regenerated.
The company is a key supplier of high-quality motor fuels for Russian consumers. In the first half of 2025, 20.0 million tons of petroleum products were supplied to the domestic market, including 6.4 million tons of gasoline and 7.8 million tons of diesel fuel.
Rosneft continues to actively participate in trading on the St. Petersburg International Mercantile Exchange. In the reporting period, 4.7 million tons of gasoline and diesel fuel were sold on the exchange, which is 1.8 times higher than the standard.
Financial indicators
Against the backdrop of falling oil prices and a stronger ruble, the Company's revenue in H1 2025 decreased by 17.6% year-on-year, amounting to RUB 4,263 billion. At the same time, the rate of reduction in costs and expenses was less than that of revenue, including due to the indexation of tariffs of natural monopolies. As a result, EBITDA in H1 2025 decreased to RUB 1,054 billion.
Net profit attributable to Rosneft shareholders in H1 2025 amounted to RUB 245 billion. The prohibitive level of the key rate of the Central Bank of the Russian Federation continues to have a significant negative impact on the size of the indicator. In addition, non-monetary and one-time factors negatively affected the dynamics of the indicator in the reporting period.
The Company's capital expenditures in H1 2025 amounted to RUB 769 billion. The dynamics of the indicator are due to the planned implementation of the investment program, primarily at the assets of the Exploration and Production segment. Free cash flow for the reporting period amounted to RUB 173 billion.
The Net Debt/EBITDA ratio at the end of H1 2025 was 1.6x, which continues to remain at a level 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 the most modern production methods to create a safe working environment and minimize the risk of industrial injuries and occupational diseases. In H1 2025, the lost working days indicator (LWIS) decreased by 40%.
As a result of accident prevention measures in the first half of 2025, the number of incidents related to process safety at the Company's enterprises decreased. In particular, the frequency of incidents related to equipment depressurization with severe consequences of the first level (PSER-1) decreased by 52% compared to the first half of 2024, and the second level (PSER-2) – by 22%.
During the reporting period, there were no cases of gas, oil or water leaks (release of oil, gas or water to the surface) during well drilling at the Company's facilities. As part of the work to minimize oil and oil product spills, measures were taken to replace field pipelines.
Rosneft enterprises maintain high standards of environmental safety in the field of water resources management in all regions of presence. Biological treatment facilities (BTF) of the Ufa group of oil refineries play an important role in the Company's work on water resource optimization. During January-June, BTF processed 11.7 million cubic meters of wastewater, and in total, over 169 million cubic meters of wastewater have already been purified in 7 years of operation. A unique environmental project for wastewater treatment using water hyacinth plants is being successfully implemented at the enterprises of the Samara group of the Company.
In addition, Rosneft scientists have developed an innovative technology for detecting oil spills, which will significantly increase the effectiveness of environmental protection measures in the oil complex. The new technology allows for high-precision differentiation between natural water bodies and oil spills.
The Company's leadership in sustainable development receives independent external confirmation. In June 2025, Rosneft entered the Climate Sustainability Index of Non-Financial Companies calculated by the Moscow Exchange. The index includes shares of companies that are leaders in the sustainable development agenda with a well-established climate management system.
1 Includes sales revenue and income from associates and joint ventures.
Department of Information and AdvertisingPJSC NK RosneftAugust 30, 2025
These materials contain statements about future events and expectations that are forward-looking in nature. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements expressed or implied by such forward-looking statements to differ. We assume no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.
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