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Rosneft Oil Company | November 20, 2006 |
Rosneft repaid its five-year Eurobond
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OJSC Rosneft (the Company) is pleased to announce that on November 20, 2006 the Company made the final coupon and maturity payment to retire its five-year Eurobond issue for $150,000,000.
The bond issue was placed in November 2001 as the first corporate Eurobond from a Russian issuer following the country’s financial crisis in 1998. The terms of the bonds included a biannual coupon payment equivalent to over 12% interest per annum. Rosneft is pleased to confirm that all payments over the life of the bonds have been paid in full and on time.
Both favourable market conditions and Rosneft’s increased profitability and resulting strengthened financial profile have allowed the Company to substantially improve its financing terms over the past several years, as evidenced by the Company’s recent bank facilities including a $2 billion loan signed in February 2006 at the rate of Libor plus 65 basis points.
Rosneft management continues to work to optimize funding sources and improve borrowing terms, thereby lowering the Company’s cost of capital and improving returns to shareholders.
NOTES
Rosneft (The Company) is a vertically integrated oil and gas company with upstream and downstream operations located principally in Russia. Rosneft had at 31 December 2005 18.9 billion boe of proved (SPE) reserves, including 14.9 billion barrels of proved crude oil reserves and 24.4 trillion cubic feet of gas. Based on production rates for 2005, the Company’s proved reserves will last for 28 years.
Rosneft operates eleven oil and gas producing enterprises across Russia as well as a portfolio of exploration projects located in strategic areas including Russia’s Far East, Eastern Siberia, the Black Sea and the Caspian Sea. In addition to its strong upstream operations, the Company also owns four loading terminals and two refineries, which have a combined capacity of 10 million tons per year, as well as a nationwide network of over 650 service stations.
Rosneft’s total revenues increased from approximately USD 3.6 billion in 2003 to approximately USD 5.3 billion in 2004 and to approximately USD 24.0 billion in 2005. Rosneft’s total revenues increased from approximately USD 4.4 billion in the first quarter of 2005 to approximately USD 7.5 billion in the first quarter of 2006. Similarly, Rosneft’s net income increased from approximately USD 0.39 billion in 2003 to approximately USD 0.84 billion in 2004 and to approximately USD 4.16 billion in 2005. Rosneft’s net income increased from approximately USD 0.72 billion in the first quarter of 2005 to approximately USD 0.80 billion in the first quarter of 2006.
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