Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

Rosneft's Pretax Profits Take Plunge

Russia's last big state-owned oil company, Rosneft, saw its pre-tax profit drop to 74 million rubles ($4.69 million) in the first half of 1998 from 557 million rubles in the same period last year, the company said Wednesday.

"The reasons for the deteriorating financial state of the company were low oil prices, low profits from exports, costly loan servicing and management changes," Rosneft Vice President Igor Baranovsky said.

The figures were calculated to Russian accounting standards.

But this year's first-half profit figures were calculated on an accruals basis, while in 1997 some Rosneft subsidiaries presented their results calculated on accruals and some on a cash basis.

Russian accounts are designed to meet the requirements of the tax authorities and converting them into international standards can turn a profit into a loss.

The company's debt since the beginning of the year increased by 1.97 billion rubles to 7.24 billion rubles on June 30.