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06.08.2018 11:35
© Rosneft
The Russian oil company Rosneft has approved a $2bn share buyback programme. The reason given is that the state-controlled company seeks to boost its attractiveness to investors. The buyback will run to as many as 340m shares. Additionally, it is part of the company’s strategy to 2020 to increase profitability, reduce capital expenditure and debt, and lift its share price, which lags compared to global rivals, the Financial Times reports.
In a statement on Monday, the company said the buyback would be executed by an appointed, yet unnamed independent agent and would extend until 31 December. Moreover the shares would be held in treasury, ahead of a board decision regarding “their potential full or partial cancellation.” After the announcement shares in the company, which is the world’s largest listed oil producer by output, rose as much as 2.7%.
Separately, Rosneft stated that its average liquids production during the second quarter of 2018 rose an annual 0.8% to 4.6m barrels per day. The company said that it had already increased output by 120,000 barrels per day in June and July following the decision by the OPEC cartel and Russia to increase an agreed cap on production, and that it had scope for an extra 80,000 barrels per day increase at short notice.
“Taking into account the arrangements on partial recovery of oil and condensate production under the OPEC+ agreement, the company was able to rapidly increase production up to the level prior to the limitations commencement already in the beginning of July, which indicates the correct strategic approach to production management,” it said in a statement.
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