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. Last Updated: 07/27/2016

Rosneft's RAS Profit Soars 7-Fold in Q1

Rosneft said Wednesday it made a first-quarter net profit, audited to Russian Accounting Standards, of 23.3 billion rubles ($855 million), a sevenfold rise from the fourth quarter last year, and would increase its dividend sixfold.

Rosneft, which is planning to issue shares in London and Moscow later this year, posted a RAS net profit of 3.34 billion rubles in the fourth quarter of 2005.

The company did not give a figure for the first quarter last year.

The government has plans to offer up to 49 percent in Rosneft to raise up to $20 billion at the IPO, but market sources have said the company was primarily seeking to raise $7.5 billion to pay back a state loan to Western banks.

The exact size of the IPO and other parameters will be determined by Rosneft's board of directors at a meeting in May or June.

Rosneft's funding needs have eased after it recently struck a deal with Western banks to cut interest on debt of over $3 billion to 65 basis points over LIBOR from 190 basis points previously.

Rosneft will boost dividends for 2005 sixfold, Interfax said, citing an unidentified person close to the company's board of directors.

Rosneft plans to pay 11.34 billion rubles for 2005, versus 1.76 billion rubles ($417 million) for 2004, the news service said. The 2005 payout is equal to 20 percent of the year's net income under Russian Accounting Standards, Interfax said. The payout for 2004 was 10 percent of that year's profit.

(Reuters, Bloomberg)