MOSCOW, Nov 12 (Reuters) - Russia's Rosneft the
world's second-biggest oil company by output after Saudi Aramco,
warned on Friday of a potential "super cycle" in global energy
markets, raising the prospect of even higher prices as demand
outstrips supply.
Surging oil prices, boosted by rebounding economies
worldwide, lifted Rosneft's net profit to 314 billion roubles
($4.4 billion) in the third quarter, versus a loss of 64 billion
roubles a year ago, the company said.
"We observe a rapid growth in demand for traditional energy
resources," Rosneft Chief Executive Igor Sechin said in a
statement. "As structural discrepancies between supply and
demand on global energy markets are further revealed, we may
witness a new super cycle on the oil and gas markets."
The Organization of the Petroleum Exporting Countries and
allies including Russia, together known as OPEC+, have been
increasing output to meet growing demand from late last year,
and Rosneft's oil production rose to 3.98 million barrels per
day (bpd), up by 9%, in the third quarter.
Yet at a meeting last week, OPEC+ stuck to a plan to raise
oil output by 400,000 bpd on a monthly basis, snubbing calls
from the United States for a higher increase to keep oil prices
in check.
The price of Russia's flagship Urals oil blend rose to an
average of $70.5 per barrel in the third quarter, up from $43
per barrel a year ago when the demand was still constrained by
the pandemic.
To meet rising demand, Rosneft plans to increase investments
in new projects, Sechin said, as it ramps-up its Vostok Oil
project in Russia's north, where it sold a 5% stake to Vitol-led
consortium for 3.5 billion euros last month.
"The key growth project, Vostok Oil, may result in Rosneft’s
output rising throughout this decade, assuming OPEC+
restrictions are eased or lifted entirely," brokerage Aton said
in a note, valuing the entire project at $70 billion.
Rosneft's earnings before interest, taxes, depreciation, and
amortization were at 638 billion roubles in third quarter and
revenue stood at 2.3 trillion roubles, up from 366 billion and
1.4 trillion roubles in the same period last year, respectively.
($1 = 71.8400 roubles)
(Reporting by Olesya Astakhova, Katya Golubkova and Oksana
Kobzeva
Editing by Mark Potter)
BP (BP.)
