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Rosneft's quarterly net profit falls 75 percent

Rosneft's quarterly net profit fell by 75 percent as crude oil prices declined, but Russia's top oil producer also blamed heavy investment in the period.

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Rosneft's quarterly net profit falls 75 percent

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Russia’s Rosneft saw its net profit slashed by 75 percent between Jaauary and march from the same period last year because of weak crude oil prices.

But the shares of the country’s top oil producer rose in Moscow on Wednesday because it has cut its debt by 45 percent to the equivalent of 20.96 billion euros.

In addition its core earnings came in better than expected. They were down 14.4 percent at 273 billion roubles (3.7 billion euros).

Sales fell by 21 percent while Rosneft pumped an average of 4.1 million barrels of oil per day, down one percent year on year, the company said.

Rosneft explained the decline in first-quarter net income was because it was investing heavily in that period, which would help generate future production and profit.

The company is led by Igor Sechin, a long-standing ally of Russian President Vladimir Putin.