Rusneftegaz can publish results for the fourth quarter of the year as of and for the three and twelve months ended 31 December. 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.
During the quarter, revenues amounted to $139,7 million and net profits totaled $56,2 million, representing year-on-year rises of 8,2% and 15,2% respectively. For the full financial year, total revenue recorded amounted to $563,7 million with the total pre-tax profit reported totaling $223,2 million, illustrating a 4,8% revenue increase, but a 3,2% fall in net profits compared to 2018. Whilst Runeftegaz's financial performance has been strong throughout the quarter, buoyed by production peaks in oil extracted and electricity generated, the forecast for next financial year is profound. The coronavirus pandemic has resulted in a collapse in oil demand and key industries shut down, leading to a global oversupply. This has been exacerbated by the failure of the Organization of the Petroleum Exporting Countries, or OPEC, failing to reduce extraction in Saudi Arabia, who are seeking to curtail the influence of the emergent American shale oil industry. As a result, the majority of petroleum storage tanks are to be at capacity imminently, thus the oil price is not projected to recover in 2020. The outlook for the Group's energy production division is also volatile, with demand for electricity from Rusneftegaz's commercial partners falling. The board of directors is undertaking steps to mitigate the financial effects of this crisis, including curtailing investments to preserve cash, but the probability of the Group reporting a financial profit this year is minimal.
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.