Rosneft Posts Sharply Lower Net

By Olga Razumovskaya 

MOSCOW--Russian state oil company OAO Rosneft's net profit in 2014 fell by more than a quarter, the company said Wednesday, citing lower oil prices, a weaker ruble and slowing growth at home.

Its net income dropped 28.5% to $9.3 billion, although revenue declined just 0.1% to $146.7 billion. Earnings before interest, taxes, depreciation and amortization, or Ebitda, were down 1.7% at $29 billion.

Rosneft didn't provide fourth-quarter figures.

The company said its hydrocarbon production climbed 4.8% to 5.12 million barrels of oil equivalent per day last year. It said it modernized production facilities, allowing it to pump more oil at older "brownfields."

Rosneft said it has begun drilling in the Universitetskaya-1 field in Russia's Arctic Kara Sea, despite U.S. sanctions that bar American companies from providing services, goods and technology for Arctic drilling projects in Russia.

Rosneft and Exxon Mobil Corp.'s joint venture found major amounts of oil and natural gas in that field last September, days before the U.S. imposed sanctions on Russia for its annexation of Crimea and its alleged support of pro-Russia separatists in eastern Ukraine.

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