Bashneft reports Q1 profit boost

Russian oil company Bashneft has posted increased profits for Q1 of this year, citing higher output and improved sales. Net income reportedly rose by 20% to US$ 444 million, with production rising by 4.4% to 28.6 million bbls in Q1.

Revenue also rose by 12.5% on the previous year’s figure of US$ 3.49 billion to US$ 3.92 billion.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 17% to US$ 824 million.

According to some analysts, Bashneft’s performance (and the performance of other Russian oil companies) was hindered somewhat by then-Prime Minister Putin’s claims of a conspiracy to inflate oil prices during the run-up to the presidential elections. Although no changes to the law or demands were made, many Russian oil companies took the claims as a warning to lower prices, even if it meant operating at a loss.

Edited from various sources by David Bizley

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