June 02, 2026 [Yahoo Finance]- Rosneft reported a sharp increase in first-quarter 2026 earnings, driven by higher revenues, stronger operational performance, cost controls, and growing gas production despite ongoing geopolitical and operational challenges.

Russia’s state-controlled oil giant Rosneft posted a strong rebound in first-quarter profitability, with EBITDA rising 36.8% quarter-over-quarter to 728 billion rubles ($9.2 billion) and net income attributable to shareholders climbing to 115 billion rubles from just 16 billion rubles in the previous quarter. Revenue increased 4.3% to 2.03 trillion rubles.

The results come as global oil markets continue to experience significant volatility. Rosneft CEO Igor Sechin said the industry faced a combination of price swings, export disruptions, pipeline restrictions, and attacks on energy infrastructure during the quarter, adding that the company is evaluating potential asset impairment provisions that could affect future financial results.

Rosneft’s hydrocarbon production totaled 63.1 million tonnes of oil equivalent during the quarter, with average daily output rising 0.9% to 5.21 million barrels of oil equivalent per day. While liquid hydrocarbon production slipped slightly to 3.74 million barrels per day due to adverse weather conditions in Siberia, natural gas output increased 4.3% quarter-over-quarter to 21.8 billion cubic meters, supported largely by offshore projects.

The company also accelerated activity at its flagship Vostok Oil development in northern Russia. During the quarter, Rosneft completed five development wells, launched pilot production at part of the Payakha field, and advanced construction of key export infrastructure ahead of a planned technical launch later this year. More than 700 kilometers of pipeline have now been welded and laid, while port facilities at Sever Bay are approaching readiness.

Downstream operations also improved. Refining throughput increased 5.2% from the previous quarter to 18.9 million tonnes as several refineries returned from maintenance. Domestic sales of petroleum products reached 9.7 million tonnes, including 3.1 million tonnes of gasoline and 3.7 million tonnes of diesel fuel.

Capital expenditures rose sharply to 418 billion rubles, up nearly 73% from the fourth quarter, reflecting increased investment in key upstream projects. Despite the spending increase, Rosneft maintained a net debt-to-EBITDA ratio of 1.7x, well below covenant thresholds.

The results highlight Rosneft’s continued push to expand production capacity and advance Vostok Oil, one of the world’s largest new oil developments. The project remains central to Russia’s long-term strategy for maintaining crude exports and developing Arctic resources as Western sanctions continue to reshape global energy flows.