Russian oil giant Rosneft doubled its net income in 2018 (Yuri KADOBNOV)

Moscow (AFP) – Russia’s biggest oil company Rosneft said Tuesday it more than doubled its net income last year, taking advantage of the climbing price of crude despite an unstable market.

The state-controlled company reported a net income of 549 billion rubles ($8.4 billion, 7.3 billion euros) in 2018, up from 222 billion rubles the previous year. Revenues increased by 37 percent year on year to 8.2 trillion rubles.

Rosneft cited “favourable world price dynamics,” caused in part by capping of output agreed with OPEC cartel countries, as well as improved company efficiency among the reasons for its increased revenue.

Rosneft chief Igor Sechin said in a statement that the company plans investments between 1.2 and 1.3 trillion rubles in 2019 as it implements “strategic upstream oil and gas projects”.

The firm also said it was keeping an eye on the political crisis in Venezuela, where it has been a major investor in the country’s struggling economy over the past few years.

“The company continuously monitors projects in Venezuela realised with its participation,” the statement said.

The Russian firm’s investment in exploration and production in the country is now threatened as President Nicolas Maduro’s rule hangs in the balance.

Rosneft’s partner in the Latin American country, the state oil company PDVSA, has been put under US sanctions and owes Rosneft $6 billion.

Rosneft also paid an advance of $1.8 billion to the authorities of Iraqi Kurdistan, according to company financial results, which called the payment a contribution to a new joint pipeline project.

The Russian company reported “reduced access to capital, a higher cost of capital and uncertainty regarding economic growth” due to Western sanctions imposed on Russia.

Both Rosneft and Sechin himself are under US and EU sanctions over Moscow’s meddling in Ukraine.

This has hampered some of the firm’s major joint offshore projects, most recently in the Black Sea which it was developing with Eni until the Italian company pulled out.

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