Rosneft’s Net Income Falls 18.4% as Refinery Disruptions and Debt Rise
Key Facts
Rosneft said net income attributable to shareholders fell 18.4% in the first half of 2026 to 200 billion rubles, compared with 245 billion in the same period of 2025. The company said the decline resulted from “non-cash and exceptional” factors, including foreign-exchange differences and asset impairments. The drop comes as a Bloomberg report published on October 22 said repeated attacks on Russian refineries are weighing on operations and increasing repair costs. By contrast, revenue and the company’s share of profits from associates and joint ventures rose 0.6% to 4.289 trillion rubles. Earnings before interest, taxes, depreciation and amortization increased 23% to 1.296 trillion rubles, from 1.054 trillion rubles a year earlier.
Net debt to earnings before interest, taxes, depreciation and amortization stood at 1.8 times at the end of June, according to Rosneft’s disclosure. The company says the ratio is several times below the minimum set in its loan-agreement covenants. Bloomberg described the level as the highest in more than five years, based on quarterly data available since 2020. The report noted that three reports during the comparison period did not disclose the ratio. The financial indicators point to a divergence between rising operating profit and the increase in the leverage measure to that level.
The operational pressures detailed in the Bloomberg report are concentrated at several of the company’s refineries. The Tuapse refinery on the Black Sea coast has been out of service since April 2026. The Ryazan refinery, which supplies Moscow and surrounding regions with fuel, has been shut for more than half the time since it was targeted in May, and has operated well below full capacity during periods when it was running. The report said the Syzran refinery spent most of the previous six months either completely shut or operating below one-third of capacity. These cases do not mean all Rosneft refineries have stopped operating; the sources describe disruptions of varying degrees at specific facilities.
Rosneft operates 12 refineries, representing about one-third of Russia’s total oil-processing capacity. Of 15 confirmed strikes on Russian oil-processing facilities in September, five hit major Rosneft facilities serving the European part of the country, according to Bloomberg. The report estimated at least 114 Ukrainian strikes on Russian refineries from the start of 2026 through October 22, more than double the number recorded over the same period a year earlier. The International Energy Agency said a Russian refinery was hit an average of once every three days during the first eight months of the year. Russian refinery processing also fell in June to 3.8 million barrels per day, its lowest level in more than 20 years and about 30% below its level a year earlier.
People familiar with the matter told Bloomberg that repeated repairs to damaged equipment are accumulating costs that Rosneft officials have privately described as unsustainable over the long term. The report said some refineries slowed repairs, extending work expected to take days into weeks. On supply, the International Energy Agency said Russian gasoline production fell 20% from 2025 levels and diesel production declined by about 30%. The report said the attacks prompted Moscow to restrict exports of gasoline, diesel and jet fuel. Rosneft said in a statement cited by Bloomberg that its stations had not closed and consumers were receiving full fuel supplies at stable prices.
The International Energy Agency cut its forecast for average Russian crude processing to 4 million barrels per day for the remainder of 2026 and 2027, citing the frequency and intensity of attacks as obstacles to recovery. Rosneft had raised capital spending 11.6% to 858 billion rubles in the first half, from 769 billion a year earlier. The company attributed the increase to an intensification of its investment program in the Vostok Oil project. Free cash flow was 194 billion rubles in the same period, compared with 173 billion in the first half of 2025. Oil and gas revenues account for about one-fifth of Russian federal government revenue, linking developments in the sector to the state’s finances.