Rosneft resumed its buyback program

According to the company’s CEO Igor Sechin, quoted by Interfax, the decision was made to renew the buyback program to “provide support for securities in the event of high volatility in the market and create attractive opportunities to increase the value of the company for the shareholders”. On April 1, the implementation period was extended until December 31, 2026. The number of shares available will depend “on market conditions during the program period.”

The previous program was in effect from March 2022 to December 31, 2023. The first one started in 2018. Experts talked about the expected growth in trading of the company’s shares in October 2022, when Rosneft announced the delisting of the London Stock Exchange global depositary receipts.

According to financial statements, Rosneft’s net profit according to IFRS for 9 months amounted to 926 billion rubles, down 13.9% year-on-year. At the same time, against a backdrop of rising oil prices, revenue increased by 15.6% to 7.645 billion rubles.

Capital expenditures for three quarters increased by 15.7% (1,052 trillion rubles), free cash assets reached 1,075 trillion rubles, oil equivalent production reached 193.4 million tons, liquid hydrocarbons – 138, 3 million tons.

It is also known that Rosneft intends to change the deadlines for the implementation of the modernization program projects by increasing the income tax to 25%, increasing the key rate and in order to “protect the interests of shareholders and avoid losses.

“The consequence of the increase in the key rate was a decrease in the efficiency of refinery modernization projects that require the attraction of external financial resources. Additional pressure on factory performance is exerted by the rapidly increasing tariffs of natural monopolies and the rising costs of ensuring anti-terrorist security,” Interfax quotes Sechin.