Russia’s oil giant just saw its profits drop 75%

[uhnope]

Source: CNBC

Russian majority state-owned oil giant Rosneft posted a swingeing 75 percent drop in first-quarter net profit, raising questions over how much money the government will be able to glean from its crude producers as commodity prices continue to lag.

Rosneft missed analyst forecasts, reporting 14 billion rubles ($216.8 million) in net profit, against Reuters consensus polls predicting 33 billion roubles in net income.

The drop didn't seem to worry equity investors, with Rosneft's Moscow-listed stock jumping around 2.8 percent to 30-day highs by 4:30 a.m. ET. However, the plunge is likely to disappoint Moscow, which is banking on state-owned companies like Rosneft to bolster revenues. The Russian government holds a 69.5 percent stake in Rosneft through state-owned firm Rosneftgaz.

In April, Russian Prime Minister Dmitry Medvedev announced he had signed a resolution requiring state-owned companies to distribute no less than 50 percent of their net profit in dividends. He said the budget was likely to receive an additional 100 billion roubles ($1.6 billion) as a result.


Read more: http://www.cnbc.com/2016/06/08/russias-oil-giant-just-saw-its-profits-drop-75.html

[Lodestar]

1. I think this is why global oil prices are artificially low

to weaken Russia. That and sanctions are meant to hobble
Putin.

[Mesee]

2. Global oil price.

Henry Kissinger has visited Russia three times this year. The Military Industrial Complex would love to go to war with Russia. Be patient and watch the next 12 months. The big project is coming.

[FLPanhandle]

3. What do you mean by "artificially low"?

Since the entire concept of OPEC and oil producing countries is to form cartel agreement to keep prices artificially high.

Basically, the market has changed and their monopoly cartel is breaking down.

The prices are returning to more normal (but still high).