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. Last Updated: 07/27/2016

Rosneft Q2 Profits Hit Record

Rosneft reported record profits for the second quarter on Tuesday and said it would show even better figures going forward due to organic growth and consolidation of new assets.

The state-controlled oil company said the second-quarter results, including a 49.5 percent year-on-year rise in net profits, were pushed up by accelerated production growth as well as the continuing consolidation of assets from bankrupt ex-rival Yukos.

"As these financial results only partially included the recently acquired assets while their integration is still ongoing, I believe that the true impact of significant shift in the company's profitability ... is yet to be shown," Rosneft president Sergei Bogdanchikov said in a statement.

Earlier this year, Rosneft bought two Yukos production units and five refineries, at state-forced auctions, to become the country's largest oil producer and refiner.

Rosneft's net profit adjusted for the effect of nonoperating Yukos payments soared to $1.66 billion from $1.11 billion in the second quarter of 2006 and exceeded the average of analysts' forecasts of $1.40 billion.

Revenue, calculated under generally accepted accounting standards rose by 25.4 percent to $10.79 billion, slightly below analysts' forecast of $11.02 billion.

In the first half of the year, profits rose by 21 percent to $2.35 billion, while revenue rose by 19 percent to $19 billion.

Rosneft said it increased output by 21.1 percent to 1.88 million barrels per day in the second quarter including the newly acquired assets of Yukos. Excluding them, organic oil production growth stood at 7.3 percent in the first six months.