Mubasher: Russia’s biggest oil company Rosneft recorded a nearly 15% drop in the second quarter of this year, owing to lower crude prices as well as stuttering oil production driven by domestic contamination crisis.

The company’s net income came in at 194 billion Russian rouble (RUB) in the period between April and June, compared with RUB 228 billion a year ago, according to a statement.

Rosneft did not justify the drop in its net income attributable to shareholders, but noted that the price of Urals, Russia’s main oil export blend, traded at $67.9 per barrel (pb) during the quarter, compared with $72.5 pb a year ago.

Earlier this week, Rosneft, which makes up more than 40% of oil production in Russia, reported that its oil output during the second quarter    rose by 0.3% to 4.62 million barrels per day (bpd) on an annualised basis.

However, it dropped by around 3% quarter-on-quarter, due to the oil contamination scandal and the supply cuts agreed on with the Organization of the Petroleum Exporting Countries (OPEC).

In general, Russia’s oil exports felt the heat of stopping supplies to Europe through the Druzhba pipeline after being contaminated by chlorides, but they were restored later on in a couple of months.

Rosneft generated RUB 2.13 trillion in revenue during the three-month ended last June, compared with RUB 2.06 trillion the same period of the previous year.

Meanwhile, earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at RUB 515 billion in Q2-19, down from 565 billion in Q2-18.

Rosneft announced a first half dividend of RUB 15.34 per share, or 50% of its net profit.