Rosneft announces a jump in Q1 revenue, but warns that attacks could damage assets

The company reported that the first-quarter net profits?of Russia’s largest oil producer,?Rosneft, jumped seven-fold from the previous?three-month period due to an increase in global oil prices and foreign exchange movements, as well as one-offs.

It warned, however, that an attack on its infrastructure could lead to asset impairments resulting in a weakened reported profit.

In recent months, Ukraine has intensified drone attacks?on Russian infrastructure for energy in an effort to reduce Moscow's revenues.

Igor Sechin, CEO of Rosneft, said that the oil market was extremely volatile in this year due to the Middle East conflict. Prices soared after a weak start for 2026.

The Russian oil industry is also facing operational risks due to the numerous disruptions of oil exporting terminals, as well as attacks on Rosneft’s refineries and production facilities.

In a press release, he stated that "given the above, we are assessing the necessity to provide for potential asset impairments which could negatively impact financial results."

Rosneft reported that its net income for January to March increased to 115 billion Russian roubles (about $1.60 billion), up from 16 billion in October and December.

The report did not go into detail about the factors that influenced the results.

Oil majors around the world have benefitted from multi-year oil price highs, which have jumped because of the war in Iran, and due to a closure of "the Strait of Hormuz", a major conduit of global oil and LNG exports.

The company reported that revenue in the first quarter increased?by 4.3% compared to the previous three-month period, reaching 2.032?trillion Rubles.

Due to the harsh weather conditions in Siberia, where it produces most of its oil, the company's oil and gas condensate production in the first quarter was down 0.4% compared to October-December.

(source: Reuters)