Russian Rosfnet sees a 50% increase in profits in 2023
Russian state oil firm Rosneft reported a nearly 50% increase in net profits for 2023, Reuters reports, topping $14 billion despite Western sanctions following Russia's 2022 invasion of Ukraine .
According to Reuters , Rosneft's net profit for 2023 rose 47.2% to 1.3 trillion rubles, the equivalent of about $14.7 billion. Earnings before EBITDA jumped 17.8% to 3 trillion rubles, while revenue increased 1.3%.
Rosneft continues to rake in profits as Europe, particularly Germany, is weighing the fate of Russian assets abroad, which will provoke further disputes.
Last week, attention focused on Germany's uncomfortable decision regarding the fate of Rosneft's refineries in Karlsruhe, Schwedt and Vohrburg. Berlin is considering nationalizing the refinery, which could lead to supply cuts and cost Germany a large payment to Moscow in damages. A paradoxical situation to say the least.
The PCK refinery in the German city of Schwedt accounts for half of eastern Germany's fuel supplies and around 11% of the country's total supplies.
Berlin sees nationalization as a way to secure long-term energy needs.
However, while the refineries are currently under government trusteeship, a decision will now have to be made whether to extend it, meaning Rosneft will continue to control it with its 54% stake. Germany has already extended the trusteeship twice, as Politico reports.
At the same time, expropriating the Russian refinery's assets would leave Germany in debt to Russia of at least a billion euros, given that Rosfnet is controlled by the government. It would be like giving the money directly to Putin
According to Politico, Rosneft has around $7 billion in assets in Germany, some of which can be seized.
Germany has already nationalized a German subsidiary of Gazprom and, in a retaliatory move, Moscow seized the assets of German oil and gas producer Wintershall in Russia.
While Rosneft reported a surge in profits, refining rates fell in February by 380,000 barrels a day compared to December, with some refineries undergoing maintenance and others targeted by Ukrainian drone attacks. According to Bloomberg, Russian refining rates fell to 5.16 million bpd in the second week of February.
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The article Russian Rosfnet sees a 50% increase in profits in 2023 comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-russa-rosfnet-vede-un-incrementoo-del-50-di-utili-nel-2023/ on Mon, 19 Feb 2024 20:25:56 +0000.