Rosneft Warns of Long-Term War Damage
Rostec leadership fears long-term damage from war — Bloomberg
Consensus
- Rosneft's management fears long-term damage from several more months of war in Ukraine.
- Rosneft's financial position is deteriorating, with declining profits and rising debt.
- Ukrainian drone attacks have significantly damaged Rosneft's refineries.
- Rosneft operates 12 refineries, accounting for about one-third of Russia's refining capacity.
- The Riazan refinery has been idle more than half the time since May and operates below capacity.
- The Syzran refinery has been either fully idle or operating at less than one-third of its capacity for the past six months.
- The Tuapse refinery has been non-operational since April.
- Repairs to damaged refineries are frequently interrupted by new attacks after completion or near-completion.
- Repair costs are described as unsustainable in the long term by company sources.
- Some refineries have intentionally delayed repairs, stretching them from days to weeks.
- Rosneft has not responded to requests for comment.
- The QIA sovereign wealth fund, owning 18.46% of Rosneft, is closely monitoring the company's situation.
Points of divergence
- Ukrainian drones have attacked Russian refineries at least 114 times this year, double the number from the same period last year. — tg_echoonline_news
- Rosneft's oil processing volume in the first half of the year was 35.5 million tons, 8% less than the same period last year, attributed to repair and restoration work. — thebell
- Rosneft's net profit fell by 18.4% to 200 billion rubles in the first half of the year, while EBITDA grew by 23%. — thebell
- The ratio of net debt to EBITDA reached 1.8, the highest in at least five years. — thebell
- The 'Vostok Oil' project's new fields contributed less than 5% of the flow in September, with most oil coming from the older Vankor field. — thebell
- Rystad Energy expects the 'Vostok Oil' project to produce 440,000 barrels per day by 2030. — thebell
- Efforts to protect refineries using sea containers, nets, and steel cables have proven ineffective. — tg_agentstvonews
Coverage (4 sources)
- Bloomberg: Rosneft executives say several more months of war will inflict long-term damage on the company — Meduza
- Rosneft leadership fears long-term damage from war — Bloomberg — ЭХО / Новости
- In 'Rosneft' fear that several more months of war will inflict long-term damage on the company — The Bell
- In 'Rosneft' warned of long-term damage to the company if war continues for several more months — Агентство. Новости