Russian state-controlled oil company Rosneft, in which BP has agreed to buy a 20pc stake, disappointed markets with its fourth-quarter results on Friday.
The oil giant's fourth quarter net income of 57bn rubles (£1.2bn) was well below a 77.2bn ruble average of analysts' forecasts compiled by Bloomberg.
“The miss was mostly due to higher costs including operating expenses,” Ildar Davletshin, an analyst at Renaissance Capital, told the news agency.
The profit was also significantly down on Rosneft's third quarter results of 181bn rubles. Rosneft has changed its reporting method and currency since 2011, complicating comparisons with the fourth quarter of that year.
Malcolm Graham-Wood, VSA Capital oil analyst, said the figures looked "awful at first blush".
Full-year net income was a "record" 342bn rubles, Rosneft said, a 7.2pc increase on 2011Last year BP agreed to buy a near-20pc stake in the venture, as part of a $27bn stock-and-shares deal to sell its half of Russian joint venture TNK-BP.
BP will be able to book Rosneft earnings in proportion to its holding in the company after the deal completes, expected later this year.
The British company has said it believes it can help drive improvements in Rosneft's performance, but BP shareholders have been sceptical about what power it will be able to exert.
Rosneft President Igor Sechin said: "Over the last year Rosneft has achieved significant strategic successes while also boosting operational efficiency."
The acquisition of TNK-BP makes Rosneft the undisputed global oil production leader.
In 2012 the company became a leading player on the gas market by setting up a joint venture with Itera and through long-term supply contracts.
We also pushed ahead with our strategy of securing long-term contracts with oil off-takers."
telegraph.co.uk
The oil giant's fourth quarter net income of 57bn rubles (£1.2bn) was well below a 77.2bn ruble average of analysts' forecasts compiled by Bloomberg.
“The miss was mostly due to higher costs including operating expenses,” Ildar Davletshin, an analyst at Renaissance Capital, told the news agency.
The profit was also significantly down on Rosneft's third quarter results of 181bn rubles. Rosneft has changed its reporting method and currency since 2011, complicating comparisons with the fourth quarter of that year.
Malcolm Graham-Wood, VSA Capital oil analyst, said the figures looked "awful at first blush".
Full-year net income was a "record" 342bn rubles, Rosneft said, a 7.2pc increase on 2011Last year BP agreed to buy a near-20pc stake in the venture, as part of a $27bn stock-and-shares deal to sell its half of Russian joint venture TNK-BP.
BP will be able to book Rosneft earnings in proportion to its holding in the company after the deal completes, expected later this year.
The British company has said it believes it can help drive improvements in Rosneft's performance, but BP shareholders have been sceptical about what power it will be able to exert.
Rosneft President Igor Sechin said: "Over the last year Rosneft has achieved significant strategic successes while also boosting operational efficiency."
The acquisition of TNK-BP makes Rosneft the undisputed global oil production leader.
In 2012 the company became a leading player on the gas market by setting up a joint venture with Itera and through long-term supply contracts.
We also pushed ahead with our strategy of securing long-term contracts with oil off-takers."
telegraph.co.uk
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