The company reported that its earnings before interest, taxes, depreciation and amortization (EBITDA) for the first quarter of 2008 were $4.69 billion, an increase of 225.3%, compared to $1.44 billion in first quarter of 2007.
The increase in key financial indicators reportedly resulted from continued oil production growth, improved vertical integration following the acquisition of refineries in 2007, improving cost controls, and higher prices of oil, petroleum products and gas.
Performance improvements were tempered by higher taxes, totaling $8.9 billion in Q1 2008, compared to $4.7 billion in Q1 2007, transportation tariff growth ranging from 13-31% and real ruble appreciation of 20.8% since Q1 2007.
Net debt decreased by $2.7 billion in Q1 2008 from $26.28 billion as of December 31, 2007, to $23.58 billion as of March 31, 2008. This resulted from the substantial increase in free cash flow, which amounted to $2.75 billion in Q1 2008 compared to a negative cash flow of $139 million in Q1 2007.
In Q1 2008, Rosneft’s upstream production and operating expenses decreased by 1.2% to $3.19 per barrel from $3.23 per barrel in Q1 2007, despite the real ruble appreciation of more than 20%.
