Rusneftegaz can publish results for the third quarter of the year as of and for the three and nine months ended 30 September. 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 Rusneftegaz earned a pre-tax profit of $72.0m, in spite of falling revenues year-on-year from $148.1m to $140.4m. These respective changes, falls in turnover of 5.2% and in pre-tax profit of 11.7%, are a result of production rates increasing marginally from the second quarter to offset the fall in hydrocarbon prices over the period. Profits for the year to date have fallen by 8.1% from $181.7m to $167.0m, however the Group maintains a far stronger economic position in 2019 when compared directly to the previous year. This is due to the extraction of an additional 500 thousand barrels of oil without any significant rises in overhead costs, largely as a result of investments in efficiency measures over the past five years. Management have also taken steps to alleviate the Group’s short-term obligations by settling payables to the value of $13.4m, and similarly making additional capital investments of $31.9m during the quarter. These expenditures are predominately focused on the ongoing maintenance, and in certain instances overhaul of, a plethora of Rusneftegaz's oil wells. Such a considerable outlay should be regarded as materially significant at this time, as it will not yield a financial gain until at least 2020, and is evidence of the management's commitment to oil production for the long-term. On another note, there are mostly positive indicators for the fourth quarter so far, with commodity prices rising and expectations that electricity generation sector will report its strongest period of the year.
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.