Rusneftegaz can publish results for the first quarter of the year as of and for the three months ended 31 March. These statements were prepared in accordance with International Financial Reporting Standards, otherwise known as IFRS, and have not been audited. The full results are disclosed in the financial section of the Group's website.
Trading for the period was heavily influenced by the coronavirus pandemic, with significant resources being deployed to mitigate the impact on Rusneftegaz’s operations. During the quarter, electricity generation significantly reduced due to a lack of demand and global commodity prices deflated as a result of worldwide overproduction. As such, management can report an overall pre-tax loss of $29.8m for the three months until 31 March, with revenues recorded receding by 7.6% to $120.6m. This was primarily due to the value of the Russian Ruble subsiding upon expectations of an imminent economic recession, in addition to the supplementary costs borne, financially and in terms of efficiency, productivity and performance, to maintain production levels throughout this time. In April, the Group also published its financial statements for the year before; with revenues totalling $563.7m yielding a post-tax profit of $223.2m, and convened a virtual Annual General Meeting in May for the first time in Rusneftegaz’s corporate history after the gathering had to be postponed from its original date. Furthermore, the second quarter of the year has been challenging and it is anticipated that the financial results will reflect this, with the further deterioration of oil prices of particular note and the imposition of stringent procedures to allay the pandemic. Management projects that the second half of 2020 will be more profitable for the Group, as demand for petroleum products grows, raising market prices accordingly, plus an increased likelihood of multilateral arrangements to cut global production. However, these forecasts are made with a significant degree of uncertainty considering the virulent nature of the disease and major caveats should be noted, with management delaying further investments accordingly until there is greater economic and epidemiological clarity.
The financial details in this article are current at the date of this report, and believed by Rusneftegaz to be accurate and true. All information is disclosed as a summary and does not purport to be complete. The data that this commentary is dependent on is obtained from sources believed to be reliable, but the Group, nor any of the directors, officers, employees, agents, subsidiaries or affiliates, can wholly guarantee the accuracy or completeness of such information.