In the first half of the year "RussNeft" has increased profit by 4 times – up to $661 million

The revenues in the first half of the year made US$ 4,532 billion, which by 40% exceeds indexes for the same period last year (US$3,227 billion).
According to the consolidated financial results, the OIBDA index of "RussNeft" in the reporting period made US$927 million, which by 43% exceeds indexes for the same period in 2010. The profit from operating activities grew by 47% - up to US$781 million, income before tax - by 4, 83 times, up to US$882 million.        
According to the financial results of the Company, it has reduced dividends in the first half of the year by 93% - up to US$4 million against US$59 million a year before.
The debt is being reduced
The total amount of debt of ОАО NК "RussNeft" during the reporting period has reduced by 12, 4% - up to US$5,442 billion from US$6,211 billion. The reduction of the debt load of the Holding has occurred as a result of the efficient production and operating activities of the Company, as well as the earmarking of funds received from the sale of a number of refining and marketing assets of the Holding, on repayment of loans.
In the 1st half of the year 2011 the Holding has started to implement the strategy of the Company, which was approved by the shareholders of the Holding in 2010. The priority tasks of the Holding became the dynamic growth of oil production, handling of the large-scale exploration works, and the development of gas projects.
One of the most important steps when solving the problems, set by the shareholders of the Holding, was the sale of the subsidiary processing and distribution enterprises – ОАО «Orsknefteorgsintez», ОАО «Neftemaslozavod», ОАО «Orenburgnefteprodukt», which was conditioned by the necessity to reduce the debt load of the Holding. The receipts from trade were directed for the pay back of the part of loan obligations of NK “RussNeft”.
The withdrawal from the refining and marketing segments of business has allowed the Company to focus on implementation of the development strategy. The positive results of the production and financial activity of the Holding prove the efficiency of the decisions taken by the shareholders.
Production is growing
Oil production in the first half of the year 2011 grew by 4% as compared to the same period last year and made 6,552 million tons. The refining throughput during the first half of the year 2011 grew by 0, 1% as compared to the same period last year – up to 2, 51 million tons.
In the first half of the year "RussNeft" has increased its revenues from oil sales by 63% - up to US$2,939 billion, from oil products sales and from petrochemicals sales - by 11%, up to US$1,545 billion. The operating costs of the Company made US$3,751 billion that is by 39% more than during the same period a year before. Oil and gas production costs grew by 29% - up to US$520 million.
In January – June oil export sales of "RussNeft" grew by 14% - up to 3,111 million tons, in the domestic market - by 15%, up to 1,912 million tons. Oil products export sales reduced by 3% - up to 1,564 million tons, and in the domestic market grew by 21% - up to 878 thousand tons.
The revenues from crude oil export sales in the first half of the year 2011 made US$2,269 billion that is by 63% more than during the same period in 2010. The increase in revenues mainly occurs due to the increase in oil prices by 43% and the increase in volume of oil export sales by 14%. During the accounting period the revenue from oil sales in the domestic market made US$ 670 million as compared to US$ 405 million in the first half of the year 2010. The increase in revenues occurs both due to the increase of crude oil domestic sales and price rises.
ОАО "NК "RussNeft" is a vertically integrated oil holding, which encompasses 24 oil producing enterprises. The business geography of “RussNeft” covers 11 regions of Russia and the CIS: Khanty-Mansi Autonomous Okrug, Yamalo-Nenets Autonomous Okrug, the Tomsk region, the Ulyanovsk region, the Penza region, the Bryansk region, the Saratov region, the Kirov region, the Republic of Udmurtia, the Republic of Belarus. There are 167 oil and gas fields under development. The net effective pay of oil of the Company exceeds 600 million tons.
Businessman Mikhail Gutseriev and AFK "Sistema" hold 49% of shares of "RussNeft", another 2% of shares are handed over to Sberbank, the major creditor.