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 record pre-tax profit of $79.1m, in spite of falling revenues year-on-year from $148.1m to $132.8m. These respective changes, a fall in turnover of 8.2% and a rise in pre-tax profit of 5.6%, are largely a result of production rates largely being maintained from the second quarter to offset the fall in hydrocarbon prices over the period. However, the Group maintains a far stronger economic position in 2019 when compared directly to the previous year, due to the extraction of an additional 500 000 barrels of oil, with profits for the year to date rising by 21.7% from $181.7m to $221.2m. Such results have resulted in management taking steps to alleviate the Group’s short-term obligations, by settling payables to the value of $13.4m, and similarly making capital investments of $31.9m. 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 a 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 said management expecting the strongest period of the year for the electricity generation sector.
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.